Agribusiness Investment: Why Livestock Insurance is Necessary for Rural Farmers

Farming is a crucial contributor to the stability of the economy. Most of the food products that the public depends on for survival come from farmers in the rural areas. For instance, livestock is a vital commodity that feeds millions of people globally. For every agribusiness farmer, however, livestock insurance is a necessity for animal protection and profitable business. 

If you are raising livestock as a business in the rural areas, here's why it's prudent to consider insuring your investment:  

Coverage under a Farm Policy

When running a small to medium-sized spread, it's imperative to opt for a farm policy, which protects your livestock and structures. Such a policy might cover your livestock as a herd or individually. Remember that livestock is covered while on your property and not on transit or away from the farm. 

A farm policy will also cover personal property, including farm equipment, machinery, structures and livestock feed. However, animals like chickens, among other domestic birds, aren't considered livestock and require separate coverage. 

Coverage from Perils 

Life is precious but can be lost in an instant. If, for instance, a fire or smoke emergency happens, you must have a proper insurance cover for your livestock. In this case, peril insurance helps cover your animals. Other potential threats covered here include theft and natural disasters like earthquakes and floods. Additionally, when they die after being hit by a motor vehicle, that's also covered. 

Therefore, depending on the circumstances, opting for comprehensive peril insurance might be wise. Such an extra clause will secure your livestock against extreme dangers like boulders falling on your animals, predator attacks or accidental shooting. 

Livestock Mortality Coverage 

The limited animal mortality cover can help reimburse you for death-causing injuries to your livestock. For broader coverage, full animal mortality insurance can reimburse you for animals that die from aging or diseases. Most importantly, it would be advisable to read through the policy and understand what's applicable and what's not in the event of livestock death. 

Coverage against Fluctuating Prices 

Livestock farmers who sell animals as commodities can benefit more from such type of insurance. This coverage will pay you should the price index fall below the standard market rate. Farmers or ranchers who sell livestock for slaughter have their investment covered against significant financial losses. 


Livestock insurance for rural farmers is highly beneficial. Skipping it means losing colossal sums of money from injuries or disease. Therefore, act quickly and get rural business insurance for your livestock farm today.