Farm equipment inventory

Think about how long accumulating your farm equipment took. And about the money you spent on each piece.

If a fire, flood, tornado or other covered disaster strikes your farm or ranch, will you be able to make a list of all of the damaged or destroyed equipment for your insurer?

Be prepared if you have to file an insurance claim

Conduct an equipment inventory so you have a detailed record of each tool, including:

• Purchase date and purchase cost. Include receipts.
• Estimated replacement value
• Serial or ID number
• Model number, brand and year

This information helps your insurance company reimburse you fairly and quickly, according to your policy provisions. Many farm management software packages include inventory tools that help make the job easier. But a notebook and a file box of organized receipts can also work.

Whatever you use, store your inventory records in a safe, off-site location, such as a safe deposit box. If your home is damaged, your records could be damaged, too.

Examples of equipment to inventory

Be sure to inventory all pieces of equipment essential to your operation, such as:

Consider marking each piece with a permanent identification number. If your equipment is stolen, an ID number will be useful for law enforcement. Use a metal engraver or stamping tool, and place the number in an inconspicuous spot.

Other ways taking equipment inventory may help

Conducting an annual equipment inventory will also help you:

• Determine if equipment may need to be repaired.
• Ensure that your existing equipment is adequately covered when your policy renews.
• Add new equipment to your policy when it renews.

Talk to your farm insurance agent to make sure all of your equipment is adequately covered.