2026 MARKET TRENDS

Farm & Ranch

Key Trends

Catastrophic events continue to drive premium increases and more stringent underwriting standards
Modern farm and ranch operations increasingly rely on connected equipment and digital platforms, significantly expanding their exposure to cyber risk
Agritourism activities, events and guest experiences introduce a unique set of liability challenges
Risk mitigation strategies, such as fire suppression systems, flood barriers, automatic water-shutoff devices and robust cybersecurity protocols are now critical for maintaining coverage eligibility and securing competitive pricing

Some markets have withdrawn from high-risk zones entirely, while the E&S marketplace has expanded its role in placing complex farm properties, outbuildings and specialized equipment.

Market Conditions

Farm & Ranch accounts are navigating a persistently firm market as escalating weather extremes and increasingly unpredictable loss trends continue to redefine the landscape. CAT-exposed regions remain particularly challenging, with carriers enforcing stricter underwriting standards and reducing capacity in areas vulnerable to wildfire, windstorms, hurricanes and flooding. At the same time, the growing reliance on connected equipment and digital platforms introduces new cyber risks, adding complexity to coverage needs.

Properties incorporating agritourism or hosting events face heightened liability scrutiny. Guest activities, rentals and public gatherings amplify exposure, making comprehensive liability programs — including cyber protection, event coverage and umbrella limits — essential. Owners who invest in robust physical risk controls and maintain strong upkeep programs continue to achieve more favorable placement and renewal outcomes.

Key Drivers

Climate volatility and severe weather remain the primary forces shaping the market. Tornadoes, hail, hurricanes, flooding and wildfires have driven elevated losses across multiple regions. Livestock and equipment claims are also increasing, fueled by heat stress, flooding and machinery damage.

Carrier capacity continues to evolve. Some markets have withdrawn from high-risk zones entirely, while the E&S marketplace has expanded its role in placing complex farm properties, outbuildings and specialized equipment. Inflation, supply chain disruptions and labor constraints are pushing replacement costs higher, further influencing underwriting and pricing.

Year-to-Year Differences

The 2026 market is expected to closely mirror 2025, with firm conditions and sustained upward pressure on rates. Persistent severe weather, inflationary trends and disciplined underwriting will remain dominant factors. The growing availability of parametric and specialty coverage solutions may provide new options for operations facing repeated CAT exposure.

Claims Trends

Weather-related losses remain the primary driver of claims for Farm & Ranch operations. Livestock mortality is increasing due to heat stress and flooding, while machinery and equipment losses continue to climb. Liability claims linked to agritourism and on-site activities are trending upward, and prolonged repair cycles for specialized farm equipment are adding to overall claim costs and downtime.

Geographic & Regional Differences

Rate Outlook

Premiums for Farm & Ranch coverage are projected to rise again in 2026, with the greatest pressure in regions experiencing repeated severe weather events. Well-mitigated properties may see more moderate adjustments, while CAT-exposed operations should anticipate higher increases.

Impacts & Customer Considerations

Ultra-high-net-worth families and family office entities should work with insurance specialists focused on complex risk management and multigenerational wealth protection. A coordinated advisory approach strengthens the family office’s ability to guide members, manage evolving exposures and secure effective insurance solutions.

Strengthen risk mitigation

Upgrading fire protection, water shut-off systems, flood defenses and cybersecurity measures can help reduce exposure and support more favorable pricing. Higher deductibles may also improve premium outcomes.

Start renewal early

Begin the process at least 90 days before renewal to allow time for underwriting review, inspections and program restructuring if needed.

Review insurance-to-value

Ensure all structures, equipment and specialized assets reflect accurate replacement costs to help avoid underinsurance and maintain appropriate limits.

Download this report

Go to Commercial Insurance Report

Go to Employee Benefits Report

Ready to find your solutions?

Let's chat

Brown & Brown, Inc. and all its affiliates, do not provide legal, regulatory, tax guidance and/or advice. If legal advice, counsel or representation is needed, the services of a legal professional should be sought. The information in this document is intended to provide a general overview of the topics and services contained herein. Brown & Brown, Inc. and all its affiliates make no representation or warranty as to the accuracy or completeness of the document and undertakes no obligation to update or revise the document based upon new information or future changes.