What agriculture business owners should know about wildfire risk

As climate patterns continue to shift, wildfire is emerging as a much more significant risk for UK agriculture businesses. In the UK, we're experiencing longer periods of hot, dry weather. This, combined with increasingly combustible vegetation and intensive harvesting operations, are creating conditions where a single spark can lead to substantial financial losses.

For farmers, estate managers, landowners and agricultural businesses, the consequences can extend far beyond the immediate fire damage. For brokers, wildfire risk presents an important opportunity. They can help clients strengthen resilience, reduce exposures and ensure insurance arrangements remain fit for purpose.

Why wildfire risk is rising

Although wildfires are often associated with other parts of the world, they are becoming more common across the UK. Agricultural businesses can be particularly vulnerable. This is due to their exposure to large areas of vegetation, crops, hay and straw storage, farm machinery and remote operating locations.

The impact of a wildfire can be significant, potentially resulting in:

• Loss of crops and agricultural income
• Livestock injury or fatality
• Damage to machinery, buildings and infrastructure
• Business interruption and delayed operations
• Environmental damage
• Potential liability claims from neighbouring landowners
• Reputational impacts within local communities

For many businesses, the indirect costs can exceed the initial property damage. This is particularly so where harvesting schedules, livestock welfare or contractual commitments are affected.

It's important to note that wildfires are not just a rural issue. There have been instances where wildfires have occured in residential and built-up areas close to cities and major roads in the UK.

Fire prevention starts with land management

One of the most effective ways to limit wildfire spread is through vegetation management. Creating and maintaining fire breaks around buildings, woodland boundaries, fuel storage locations and public access routes can help slow or contain the spread of fire. Regular management of field margins, dry vegetation, bracken, gorse and scrub can also reduce available fuel loads. Crop selection should be carefully considered in areas where heritage railways operate coal-fired steam trains on their lines.

Following harvest, businesses should consider:

•  Removing straw promptly
• Reducing combustible waste build-ups
• Cultivating strategic areas to break fuel continuity

Wildfire losses are often driven by how quickly a fire spreads rather than how it starts. Proactive vegetation management can significantly reduce the scale of damage and improve the chances of protecting key assets.

Lowland peat farms at higher risk of long-term damage

Lowland peat farms can fact long-term damage as a result of a fire, due to agricultural drainage drying out the carbon-rich soil. The dry peat can easily catch fire, which in turn supports underground smouldering that is extremely difficult to put out. It can destroy the soil structure, and release massive amounts of carbon into the atmosphere.

Machinery remains a key source of ignition

Agricultural machinery continues to be one of the most common causes of harvest-related fires. Systems and equipment can generate heat or sparks capable of igniting dry vegetation.

Daily inspection and cleaning routines should focus on removing any areas of contamination. Businesses should also maintain preventative maintenance programmes, and address hydraulic leaks or damaged wiring quickly.

Appropriate fire extinguishers should be carried on harvesting equipment. There should also be suitable communication methods and trained operators available. Fire extinguishers should be serviced annually, be easily accessible, and suitable for Class A and electrical fires.

A relatively minor machinery fault can quickly escalate into a major loss event. This could affect crops, neighbouring land and business operations. Preventative maintenance is often one of the simplest and most cost-effective risk controls available.

Protecting buildings, fuel and stored crops

Farm buildings and storage areas require particular attention during periods of heightened wildfire risk.

Vegetation-free buffer zones should be maintained around grain stores, livestock buildings, workshops and residential properties. Equally important is the management of hay and straw storage. This ensures material is sufficiently dry before storage and monitored for signs of heating or moisture ingress.

Fuel storage areas should have appropriate separation distances, vegetation clearance and emergency access routes. After use, combines and other machinery should be given time to cool down and be cleared before storing them in sheds.

Concentrated asset values can turn a localised fire into a major insurance claim. Good housekeeping and storage practices can help reduce both the frequency and severity of losses.

Wildfire preparedness and planning ahead

Preparedness extends beyond physical assets. Businesses should have arrangements in place to protect employees, contractors and livestock.

This includes:

• Clearly defined emergency procedures
• Up-to-date contact lists for emergency services, equipment operators, contractors, neighbours and utility providers
• Identified livestock evacuation arrangements
• Alternative grazing locations
• Accessible site maps showing water sources, access tracks and key assets

Effective emergency planning can help business resilience. It can help reduce response times, support emergency services and help minimise disruption following an incident.

Key risk management principles for wildfire

The most effective wildfire strategy for agricultural businesses is built around five key principles:

1. Prevention - reduce ignition sources.
2. Fuel management - manage vegetation and combustible materials.
3. Preparedness - maintain emergency plans and equipment.
4. Protection - safeguard people, livestock and essentials.
5. Recovery - ensure business continuity arrangements are in place.

By combining these measures, UK agricultural businesses can significantly reduce both the likelihood of wildfire occurrence, and the severity of losses should a fire occur.

Offering an insurance perspective

As wildfire risk evolves, insurance should be viewed as one component of a wider resilience strategy. This is as opposed to a standalone solution. Agricultural businesses should regularly review whether sums insured remain adequate for:

• Buildings
• Machinery
• Livestock
• Crops
• Business interruption exposures
• Environmental liabilities

Maintaining digital copies of key records, asset inventories and insurance documentation can also support a faster recovery following a loss.

By combining effective risk controls with appropriate insurance protection, brokers can help their customers build resilience against potential threats.

Our parent company, Intact Financial Corporation (IFC), offer a global understanding of climate and wildfire risks. Their climate centre site contains a wealth of useful risk preparedness information. This includes a practical wildfire smoke protection at home guide.