They say money doesn’t grow on trees, but it may be growing in the horticulture industry.
Specifically, we’re talking about horticulture in the sense of greenhouse and nursery growing (modern agriculture). As of 2022, this was estimated to be a nearly $32 billion industry with a strong long-term forecast.
Zion Market Research, in a study published in fall of 2023, projects a compound annual growth rate (CAGR) of 7%; by 2030, greenhouse horticulture will be worth in excess of $54 billion. It’s a valuation that jumps off the page but it shouldn’t come as a surprise due to the increased attention given to environmentalism and sustainable agriculture.
We know that most consumers know what organically-grown products are and what they represent, but they don’t necessarily know where they come from (or why chemical-free, sustainable farming is important).
When it comes to the clients in your insurance portfolio, there are numerous reasons to consider adding horticultural and greenhouse business to the roster.
The Greenhouse Industry is Poised for a Booming Future
The estimated value of vertical farming is $7 billion.
Coupled with the quite-promising valuation for greenhouse growing that we covered above, it’s safe to say this is an agricultural subset that bears watching closely – and becoming more informed about – in the years ahead.
Why Are Nursery and Greenhouse Clients Right for You?
Insurance brokers have options – but some carry far more potential than others. With respect to the greenhouse and nursery industry, that potential is only going to grow in the near future. Expert projections have the industry becoming a trusted and reliable source of crops, in large part due to the controlled environment greenhouses use, which has several encouraging outcomes.
One, greenhouse growing extends the growth season and isn’t exposed to seasonal changes that traditional farming experiences. In colder climates, greenhouse businesses can start growing sooner and continue growing later – and they open the door for crops that wouldn’t grow in certain climates.
For example, greenhouses can grow tropical fruits and vegetables in cold-weather climates. They can grow southern crops in the northeast, etc. These accounts have tremendous opportunity and they present a win-win for brokers.
There’s enormous growth potential (and profitability)
The greenhouse and nursery industries are already big business – but there’s more to come.
Grand View Research, in a report released late 2022, estimated the net value of the industry (global) to be in excess of $25 billion. There are several factors influencing this rapid growth, but a few stand out:
- Accelerated population growth in urban areas
- Implementation of modern farming techniques (vertical farming, chemical-free/organic farming)
- Increased demand for food as a result of population growth
- Decline in amount of arable land
In North America alone, the industry was valued at more than $5 billion in 2022 with the potential to double or triple that number by 2030.
It’s a competitive advantage in your client portfolio
In an industry that’s equipped to meet the challenges of the moment (food supply, urbanization, etc.), having horticulture businesses in your portfolio is a true advantage.
The risks and challenges these businesses face are far different – and more manageable – than those of traditional farming, which is fighting several factors that some consider to be irreversible. Those include climate change, deforestation, and a reduction in arable land.
Client retention rate is likely to increase
You’ll be uniquely prepared to help clients navigate any challenges. Retention is key to your long-term success, and clients are more likely to stick with you if you can demonstrate expertise and counsel that’s unique to their business.
Greenhouse and nursery insurance is critically important to the business’ long-term viability and the industry evolves, and naturally, new risks and uncertainties arise.
These businesses require niche, professional expertise
When you’re committed to growing your book of horticultural businesses with GrowPro, you’re placing them with an insurance partner that’s a proud member of AmericanHort and the National Hemp Association.
No other insurance partner is as qualified and knowledgeable in the way GrowPro is; GrowPro is the largest program of its kind and rated “A+” by A.M. Best. That means brokers and insureds benefit from GrowPro’s strength and stability, giving greenhouses and nursery growers the security they need to focus on successfully growing and running their businesses.
Horticulture businesses need tailored risk management
Horticulture and greenhouse growing is the future of agriculture – but it’s not immune to problems. Risk management that is laser-focused on the specific industry (and knowing how to troubleshoot those problems) is key to sustaining a prosperous business.
What happens when an air filtration system falters? Or when the greenhouse or vertical farm experiences temperature changes caused by extreme weather? When a horticulture business knows its insurance partner is prepared and qualified to provide coverage, it provides not only a path back to normalcy but also peace of mind.
Why Do Greenhouse and Nursery Businesses Need Customized Insurance Coverage?
We’re heading toward a future where sustainable farming is at the forefront of agriculture – and GrowPro is providing the most comprehensive insurance coverage available.
An industry that’s aiming to solve current and future problems of food supply, population growth and more requires specialized coverage to keep it going.
Horticulture Faces Unique Risks and Challenges
One major point of emphasis for horticulture businesses is being able to quickly diagnose and address problems. The longer they linger, the more those problems can affect other crops and, in turn, the entire growing operation.
Scale is one issue (we’ll get to that in a moment), along with a need to be able to automate much of the operation to truly make the most efficient business possible.
Here are some of the immediate challenges facing horticulture, specifically greenhouse businesses including nurseries, indoor vertical farms and more:
- Water conservation: Crops growing in controlled environments require a lot of water, and “a lot” is probably underselling it. The business must have the proper coverage in place if and when water consumption issues occur.
- Power usage: Yes, vertical farming and modern agriculture uses LED lighting, but it’s expensive when you’re talking about a large-scale operation. Not all crops require the same amount of light, which makes efficiency a tall task.
- Quality assurance: Are crops closer to the source of nutrients going to consume all of the nutrients? The detail required to execute a well-oiled machine in this industry is nothing to sneeze at.
- Pest and disease control: When you have a large number of crops growing in a controlled setting, pests and diseases become even more important to control. One pest or disease impacting one crop can quickly turn into a problem for every crop in the harvest.
Comprehensive Insurance, Like GrowPro, Protects a Variety of Growing Businesses & Their Environments
GrowPro’s industry expertise supports you (the insurance broker) and your clients, which is essential as this industry continues to boom.
Eligible Exposures
Our 30-plus years of greenhouse and horticulture industry experience work for your and your clients, offering expert guidance on coverages and proper valuation of the business’ operations, property and equipment.
Our extensive insurance program provides coverage for a variety of different businesses in the horticulture and modern agriculture industry.
These businesses include:
- Greenhouse growers
- Nurseries
- Garden centers
- Hydroponic and aquaponic growers
Ineligible exposures include agricultural crop spraying and cannabis growers.
Special Coverages
When you have greenhouse and nursery coverage with GrowPro, insurance options are plentiful. Here are some of the special coverages available:
- Errors & Omissions
- Specialized coverage for pesticide and herbicide spraying operations
- Limited job site pollution
- Custom coverage options for bucket trucks, cranes and tub grinders
- Cyber insurance
- EPLI
Lines of Business
GrowPro can help your horticulture business clients acquire several lines of coverage, including:
- General liability: premises and operations, with limits up to $1 million per occurrence or $2 million aggregate
- Auto liability: with limits up to $1 million per occurrence
- Property coverage: with limits up to $15 million
- Inland marine coverage: with limits up to $2 million
- Umbrella liability: with limits up to $15 million
- Workers’ compensation: statutory limits
Risk control services from GrowPro
GrowPro is uniquely positioned to provide specialized, custom solutions to reduce interruptions to your horticulture clients’ business operations – along with minimizing risk and frequence/severity of claims.
Every insured broker partner has access to NIP Group/GrowPro’s proprietary risk control learning management system (LMS), with access to hundreds of online training courses. There is also an expansive resource library with thousands of employment-related and workplace best practices articles, to pair with tailored risk control services. You can learn more about those here.
The comprehensive approach of GrowPro and its industry-leading expertise
GrowPro has been insuring horticultural professionals and their businesses for more than 30 years, and is currently the largest and most comprehensive provider of its kind.
Learn more about GrowPro and how it can protect your clients’ horticultural business by visiting our website.
