Why should I consider livestock insurance?
Livestock and dairy insurance are an important part of your farm’s risk-management strategy. They can protect against financial loss due to changes in market prices for your livestock, milk, or a decrease in your profit margin. You may be wondering if you need livestock insurance, or what livestock insurance will cover. With rapidly fluctuating and uncertain markets, it’s more important now than ever for farmers to consider livestock insurance as a part of their risk management strategy to protect their livestock, farm, and livelihood.
The right kind of livestock insurance policy can protect your farm from unforeseen circumstances that could be detrimental to your operations. Whether you are a dairy, swine, or beef producer looking to ensure the price at which your milk or livestock is sold, there is a policy to help you reduce your risks. Livestock insurance is important for farmers who want to be protected from as many unpredictable events as possible. As you are aware, one of the only things you control in farming is the effort you put forth every day. Most other aspects, including the market, is out of your control, which is why it’s important to have a comprehensive risk-management strategy for your operation.
“Livestock and dairy insurance provide producers with peace of mind the price of their livestock or milk will be insured for market value at the time of purchasing coverage,” says GreenStone Farm Credit Services Senior VP of Crop Insurance Ben Malich. “This is a valuable tool for mitigating risk to your farm operations and provides financial protection during a time of market uncertainty.”
What are the different types of livestock insurance?
When determining the kind of coverage best for you, the first step is determining what your risk-management needs are and what kind of protection would benefit you most. Livestock and dairy insurance largely fall into these three categories:
Livestock Risk Protection: LRP protects against a decline in livestock market prices for beef and swine.
Livestock Gross Margin: LGM protects against the gross margin as determined by the market value of the livestock minus feed costs to mitigate the challenges of raising both beef and swine to market weight. Dairy can also be insured by LGM.
Dairy Revenue Protection: DRP protects against the difference between the final revenue guarantee and actual milk revenue if prices fall.
Where do I begin with livestock insurance coverage?
When it comes to determining what level of coverage you will need, it helps to have an expert on your side. Working with an insurance provider who understands the ins and outs of your specific industry as well as current market prices and trends is imperative to determining the livestock insurance policy most beneficial for your farm. GreenStone’s team of dedicated livestock insurance specialists focus solely on working with farmers to help them determine which risk management option is best for them.
When you work with GreenStone, you also gain access to Farm Credit’s exclusive Livestock Insurance Analyzer tool. This tool allows producers to view quotes, request coverage, track endorsements, and stay informed through access to the latest market updates. All this and more can be done right in the palm of your hand through a mobile app!
If you are considering livestock insurance as a part of your farm’s risk-management strategy, the first step is to contact your GreenStone crop insurance or livestock insurance agent. If you are interested in learning more about the options available to you, GreenStone’s team of livestock insurance specialists would be more than happy to answer any questions you might have.
