Like any small business, farmers are liable for paying a variety of taxes. These are determined by variables such as whether or not you own your land, have employees, sell non-food items, and where and how you sell your farm products. There are also some farm exemptions from paying taxes.
When accidents or natural disasters happen, farm and food businesses need business tools such as insurance to cover physical damage and loss of income. Insurance can also help minimize your liability, legal fees, possible interruptions to your business, and even negative publicity. It can help you weather disruptions from natural disasters, accidents, and in some cases market devaluation. Insurance may be required by your lender or buyers.