U.S. Irrigation Insurance Market Size, Share & Trends Analysis Report By Component (Center Pivot Structure, Motors & Pumps), By Type Of Coverage (Comprehensive Coverage, Mechanical Breakdown Coverage), By Distribution Channel, And Segment Forecasts, 2025

U.S. Irrigation Insurance Market Trends

The U.S. irrigation insurance market size was estimated at USD 350.4 million in 2024 and is projected to grow at a CAGR of 5.0% from 2025 to 2030. Irrigation systems are now a crucial investment in modern agriculture. Farmers seek insurance coverage to protect against mechanical failures, natural disasters, and operational disruptions. The market growth is primarily influenced by factors such as the growing adoption of advanced irrigation systems, rising climate uncertainties, and increasing awareness among farmers about financial protection against equipment failures and weather-related damages.

Farmers in the U.S. are increasingly adopting advanced irrigation systems to improve water efficiency, boost crop yields, and reduce costs. Sprinkler and drip irrigation technologies are gaining popularity as water scarcity and climate variability grow. Government incentives and subsidies are encouraging investment in modern irrigation infrastructure. With more farmers relying on these systems, irrigation insurance is in higher demand to protect against mechanical failures, malfunctions, and weather-related damage. Insurance plays a key role in ensuring the long-term resilience and sustainability of U.S. agriculture.

Rising climate uncertainties are significantly increasing risk exposure for U.S. farmers, making irrigation insurance. Extreme weather events such as droughts, floods, and heavy precipitation are impacting crop yields, soil quality, and overall farm productivity. In 2024, in the U.S., weather-related disasters caused over USD 20.3 billion in agricultural losses, with a substantial portion remaining uninsured or outside policy coverage limits. This underscores the need for robust irrigation insurance solutions, supporting market growth as farmers seek financial protection against unpredictable climate risks.

Furthermore, prolonged drought conditions in Southern and Midwestern states have severely damaged field crops. Ranchers have been forced to sell livestock early due to high feeding costs. Excessive rainfall has led to soil erosion and agricultural runoff, threatening water quality and farm sustainability. The increasing climate challenges are driving higher demand for comprehensive irrigation insurance. Farmers need coverage to mitigate financial risks from unpredictable weather, system failures, and crop damage, ensuring long-term agricultural resilience.

U.S. Irrigation Insurance Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. irrigation insurance market report based on component, type of coverage, and distribution channel:

• Component Outlook (Revenue, USD Million, 2018 - 2030)
• Center Pivot Structure
• Sprinkler Systems
• Motors and Pumps
• Electrical Systems
• Others
• Type of Coverage Outlook (Revenue, USD Million, 2018 - 2030)
• Comprehensive Coverage
• Mechanical Breakdown Coverage
• Weather-related Coverage
• Others
• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)
• Direct Sales
• Insurance Brokers & Agents
• Online Platforms