What is Livestock Insurance?

Livestock insurance is an insurance product that protects your farm from losses in the event of an accident or disease. This policy may also cover the costs of rebuilding a damaged farm. If you lose your entire flock or many of your animals, you can get compensation. Here are the steps you need to take to file a claim. For some important steps to take in a livestock loss click this link birdtrippers.com

Assess your operation’s risk profile. Livestock risk protection is designed to protect you from price declines on feeder cattle, fed cattle, and unborn calves. It uses CME futures prices to set a floor price and helps producers mitigate risk in the national marketplace. Livestock insurance is not limited to beef cattle, however, and can cover swine and lambs. Listed below are some of the benefits and restrictions of each livestock insurance type.

Customize the coverage. Livestock insurance covers a variety of animals, including exotics. It pays for the replacement of livestock that has died, been put down, or stolen, as long as they are insured. Livestock insurance coverage may also apply to losses that occur while the livestock is on-site or in transit. Livestock insurance typically has a limit on the number of animals per policy, but some policies cover up to $1 million for the entire farm.

Provide coverage for drought. The drought caused 75 percent of livestock deaths in the Horn of Africa, leaving many herders destitute. Consequently, Kenya launched the first government livestock insurance scheme in Africa. This program, named the Kenya Livestock Insurance Program, began in October 2015 and was a successful pilot in two North Kenya counties. Swiss Re and the World Bank supported the initiative. The Kenya Livestock Insurance Program is now expanding to cover all of Kenya’s cattle farmers.

Protect your farm from price changes. Livestock Risk Protection insurance is a USDA-sponsored program that protects producers from price changes in the livestock market. This program does not protect you from losses due to other perils. While LRP can reduce your risk, it does not increase your gross revenue and does not guarantee the basic level or cash price. For this reason, producers should carefully consider their risk management strategies before purchasing a policy. When choosing a livestock insurance policy, be sure to work with an authorized agent. You can search for policies on the RMA database to see what is available.

In addition to coverage against price drops, you should also consider Livestock Gross Margin protection. This policy protects your projected milk production margins. It is federally subsidized and covers up to 50% of the premiums. Premiums are due 30 days after the end of the policy period. It will be important to market at least 75% of the targeted milk marketing receive full indemnification. Insurers are also required to meet certain requirements.

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