Farm Safety: A Profitable Investment

First Financial Bank

At First Financial Bank, we’ve gathered an important lesson from years of serving agricultural businesses.

The most profitable farms are not only those that have the latest equipment or the highest production numbers. They’re the ones that consistently make farm safety a priority. While not entirely exhaustive, this article presents key points to keep in mind when assessing your farm’s safety. Please also refer to other resources, such as the USDA.

The True Cost of Ignoring Safety

When you operate a farm, safety inspections may seem less pressing than getting crops in the ground or livestock fed. Consider this: industry statistics show that farm accidents result in thousands of injuries each year, many of which could have been avoided with proper checks and safety protocols. At FFB, we’ve heard stories about farmers who have encountered these problems. Operational shutdowns due to safety breaches; families grappling with the aftereffects of injuries that could have been prevented; large and profitable farms suddenly needing emergency financing to cover unexpected costs. These are not mere statistics; they are real human beings whose lives and livelihoods were affected because production safety may not have been at the forefront.

Beginning With a Thorough Farm Safety Inspection

Provide the entire operation with an extensive safety inspection throughout your production year, as it’s an opportunity to invest in your farm’s ongoing profitability. Please consider addressing the following:

Barns and structures – The main working site.

Animal facilities – The area where daily livestock care is performed.

Grain storage – High-risk places for potential respiratory hazards.

Workshops – Where the equipment repairs and maintenance take place.

Chemical storage – Essential to avoid exposure.

Farm machinery – Your single most valuable (and potentially dangerous) asset.

Fuel storage – Fire prevention is critical.

Having a second pair of eyes accompany you during these inspections is worth considering. When “you’ve been there and done that” for years, sometimes it can be challenging to step back and have a fresh perspective. A new viewpoint, from a safety specialist, an employee, and/or a fellow farmer, can reveal problems you may otherwise overlook.

The Checklist: Getting Educated from the Experts

Extension Safety Program’s David W. Smith has crafted an excellent 11-page checklist on farm operations related to safety inspections. We won’t reproduce the entire document here, but here is a summary of a handful of key questions to address during your inspection process. Because your team spends most of its time at your primary structures, they deserve careful oversight.

  • Does everyone have an easily accessible, fully stocked first aid kit?
  • Are emergency phone numbers clearly posted so that everyone can see them?
  • How good are your smoke detectors? Are they working? Are they tested regularly?
  • Are there flammable or flame-threatening materials in the workplace?
  • Do flammable liquids have appropriate storage away from work areas?
  • Are all stairs and ladders fitted with secure handrails? Are there indications that some of them may be deteriorating?
  • Are the walk surfaces clear of slippery materials that might cause people to trip?
  • Has any protruding nail, screw, or sharp point been removed or covered?
  • Is the electrical wiring in a safe condition, with no frayed cords or exposed connections?
  • If so, is it possible to lock out electrical power during equipment maintenance?
  • Are the equipment safety shields installed adequately on site, and will they be used during operation?
  • Are low clearances, beams, and hanging objects clearly marked with messages visible?
  • Are hazardous areas, such as manure storage, chemical storage, and silos, secured from unauthorized access, particularly by children and visitors?

The good news? Many such problems can be addressed relatively cheaply, particularly compared to the cost of an accident or violation.

A Comprehensive Approach to Prioritizing Safety

We can say that safety is not purely a financial issue, because, at the end of the day, farm operations can’t survive without cash flow to be successful. An investment in a safety inspection can provide a return for you in a few ways, too:

Reduced Insurance Rates: Farm insurance companies tend to charge farmers lower rates for demonstrating good safety practices. And when you already have razor-thin margins to contend with, these savings begin to add up very quickly.

Lower Worker’s Compensation Claims: Whether you own a large farming operation or a smaller diversified farm, injuries to employees increase your workers’ compensation costs. An excellent safety culture mitigates those costs.

Improved Lending Opportunities: When approaching lenders for equipment financing or growth opportunities, a documented safety program demonstrates responsible management. It proves that you’re thinking long-term about safeguarding your investment.

Good Employee Retention: Good employee training should include extensive safety courses. Workers will be more likely to remain with operations that prioritize their well-being. It isn’t easy to find and retain qualified employees for your operation, but investing the time in proper training will give you a competitive advantage.

Operational Continuity: An injured employee translates to productivity loss at key moments. You cannot afford to have team members sidelined during planting or harvest season because of preventable accidents.

Building a Safety Culture, and Not Just Checking Boxes

The most powerful farming operations we speak with incorporate safety into their culture and not just a box-ticking exercise.

  • Regular Training Sessions: Hold short safety meetings before high-risk work starts.
  • Example-Setting: If you are the farm’s owner or manager, your company will observe how you take care of your own safety. Then, when you always provide PPE for workers or take time to handle hazards yourself, your workers will as well.
  • Foster Reporting: You train workers to report near misses and potential hazards without hesitation about discipline. These reports offer possible solutions to prevent similar accidents in the future.
  • Make Life Simple: Maintain first aid supplies. Make adequate signage visible. Have appropriate lighting in workspaces. When safety measures are simple, compliance is predictable.

Incorporating Safety Into Your Farm Business Model

Whether you are buying an existing farm or expanding your current operation, safety considerations should be an integral part of your planned business. Looking at loan applications at First Financial Bank, we’re impressed by the farm operators who make safety investments a part of their capital planning cycle. These kinds of investments may not require elaboration or a capital charge. Sometimes the most common and efficient improvements are the simplest:

  • Old electrical systems are repaired before their damage worsens.
  • Proper ventilation in confined spaces.
  • Replacing worn safety guards on appliances.
  • Add slip-resistant surfaces in high-traffic places.
  • Upgrading lighting in barns and work areas.
  • Designating emergency assembly sites.

These improvements may often qualify for FSA programs especially when they constitute a larger plan for farming improvement or purchase.

You are a First Financial Bank Perspective

As the preferred FSA-approved lender, working with agricultural organizations across the country, we’ve seen what long-term success looks like on farms, and safety is a key part of that equation. It doesn’t show up in the production reports, but it’s absolutely necessary. Our loan officers have an understanding of agriculture and come from farming backgrounds. They’ve walked the fields, helped herd animals, and worked with mechanical equipment. When we evaluate your loan application, we’re not just considering numbers on a page; we are reviewing the viability of your entire enterprise. A culture of safety tells us that you are thinking strategically to keep your most precious assets, your people and your business secure.

Taking Action Today

You don’t need to reorganize your entire operation overnight. Begin with a methodical approach based on the questions we have introduced. Record what you examine and what you find, rank priority items by importance, and create a schedule to address your concerns accordingly.

The most productive farming operations manage to strike a balance, and with a pinch of protection. They know that the time consumed with safety today averts losses tomorrow. It isn’t about adding bureaucracy to your daily grind; this is about making sure you’re still farming for decades to come.

Final Takeaway

We at First Financial Bank are committed to long-term success. So whether we’re financing equipment purchases, land acquisitions, or expanding operations, we want you to establish a long-term, sustainable business that will benefit your family and community for years to come. That vision is predicated on safety. Our advice is that if you are considering enhancements to your business, such as upgrading safety features, contact our Farm and Ranch lending team. Let us teach you how safety investments factor into your larger financial plan, and what financing solutions are available to you. We’re not just in the business of agricultural lending at the end of the day.

You’re our business, and we want to see you succeed safely.

Want to chat? We’re here to answer any questions.

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