If you’re a rancher, you’re probably wondering what the weather forecast looks like, what direction the markets will go and regularly reevaluating what works best to keep the herd healthy to maximize the number of calves to market.
There are now viable options to transfer these inherent risks by covering them with insurance policies for:
Annual Forage Coverage (available in select counties only) provides insurance for ground where you potentially plant for feed or fodder, when the average precipitation in your grid falls below preselected coverage levels.
Pasture, Rangeland, and Forage (PRF) works similarly to Annual Forage in that it provides potential coverage when the average precipitation falls below preselected coverage levels in your grid, covering your perennial pastures and hay grounds.
The purpose of these two programs is to provide coverage when there is a lack of precipitation, based on your selected coverage levels. Lack of precipitation may reduce the tons of annual forage you are able to harvest, the number of bales you put up on your hay ground or even reduce the grazing season so you have to pull your livestock early or supplement the pastures.
Livestock Risk Protection (LRP) allows cattle and swine producers to protect against declining market prices and ensure their peace of mind. In the event that prices fall, livestock are still covered and allow the producer to realize the upside on the cash market. There are a number of different coverage levels and insurance periods offered to match the time your livestock would normally be marketed.
If the actual ending value is below the coverage price at the end of the insurance period, an indemnity will be paid for the difference.
Mortality Insurance coverage has often been associated with high-value animals, performance horses, herd sires, donor cows, etc. Most producers are not aware that they also can place specified peril coverage on their cows and calves with a standalone policy to provide risk protection for the entire herd.
This approach offers several advantages. You can select a lower deductible than your farm/ranch policy offers, which could include coverage for grass and water poisoning or suffocation. If you have a claim on a standalone policy, that claim won’t affect the premium on your farm/ranch policy.
FBN Insurance has the expertise to serve producers of all sizes. Our agents are here to build a loyal relationship, ensuring stability and trust in times of market loss, mortality loss, or unexpected peril.
As outlined above, there are many advantageous coverage options available to help you manage your livestock risks. Call (877) 576-4468 to connect with an FBN Insurance agent today, complete the brief form below, or visit fbn.com/insurance to learn more.
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