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NFU Mutual has launched an insurance policy designed for farmers with up to 50ha (123 acres).

Farm Essentials has been developed with the help of the farming unions and a panel of small farm owners and tenants.

It is the first time in the company’s 105-year history that it has offered such a product.

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The policy offers cover for buildings and contents, up to £10m public liability, employer liability, environmental liability and goods in transit.

There is also the option to add in cover for livestock, business interruption, legal expenses and personal accident.

Mike Lawler, head of propositions at NFU Mutual, said small farms were at the heart of country life and provided fantastic opportunities for new entrants to get a foothold in the industry.

“However, current economic pressures are making it increasingly difficult for farms under 50ha to thrive. That’s why we have developed a special policy which provides the protection they need, the expert local service our customers expect that results in 93% of our policies being renewed, and potentially lower premiums.”