The agribusiness industry provides continual support to the economy and includes a variety of subsectors, including crop production, forestry, livestock, logging and agricultural chemicals.
Having adequate insurance for your agribusiness is essential to your company’s long-term financial health. The agents at Boyer insurance in Zanesville, Ohio, are ready to help you evaluate your options and choose the coverages most likely to benefit your agribusiness.
What Is Agribusiness?
Agribusiness is the sector that includes all farming-related commercial activity. It encompasses growing (production), harvesting, processing and distributing farm products. Each subset of the agribusiness industry focuses on operating efficiently to keep prices as low as possible.
Companies in agribusiness include every business in the industry responsible for getting a food product or byproduct to market. Examples include John Deere, which produces farm equipment necessary for planting and harvesting crops, and Archer-Daniels-Midland (ADM), which processes corn into corn syrup, transports crops and produces soy and canola oil.
Are Smaller and Organic Farms Part of Agribusiness?
While the term agribusiness may bring to mind large corporations, there are many smaller and potentially sustainable producers and global conglomerates involved in the agribusiness industry.
Even small farms and organic operations are run as a business. They may choose to use different methods to raise and process animals or grow and harvest crops, but their ultimate goal is to turn a profit so they can continue to provide goods to the marketplace.
There are a few major subsectors of agribusiness:
· Agricultural chemicals. These businesses formulate, mix and manufacture pesticides, fertilizers and agricultural chemicals. Bayer, CropScience and Syngenta are major companies in the agricultural chemicals sector.
· Agricultural commodities. These businesses produce crops such as corn and soybeans. Cargill, John Deere and ADM are large agricultural commodity companies.
· Aquaculture. Businesses in this sector cultivate aquatic organisms in controlled marine and freshwater environments. Nearly 70% of all aquaculture operations are freshwater catfish and trout farms.
· Forestry and logging. Companies in this sector establish, manage and use forests and trees to meet marketplace demands for related products. The two largest forestry companies are Weyerhaeuser and Masco.
· Livestock. These businesses produce animal goods such as dairy, meat, wool and leather. The largest pork producer in the United States is Smithfield Foods, a subsidiary of WH Group of China. The largest beef producer is Tyson. Other major livestock producers include Land O’ Lakes, Cargill and New Hope Grup[MR1] .
Where to Get Agribusiness Insurance
When you need to insure your agribusiness operation, trust the agents at Boyer Insurance. We can help you get the insurance you need to help protect your company today.