Livestock insurance eases farmers’ burden

Drought, flood, fire, disease, injury and death – the natural hazards for farm animals are

wide-ranging.

If that wasn’t enough for farmers in Australia to worry about, other risks add to the ones that

mother nature dishes out – for example legal liability, theft and malicious damage.

Livestock insurance is a key piece of the puzzle when it comes to helping farmers in

Australia protect the animals that are their livelihood.

It doesn’t just apply to cattle, but to other animals such as pigs, poultry, fish, sheep and

horses. Tailored insurance is also available for less commonly farmed animals such as

alpacas, llamas and deer.

Cover is also available for animals travelling by road, sea or air, whether that’s to a local

agricultural show or to new owners.

In today’s sophisticated breeding environment, artificial insemination brings new risks – and

insurance is available for loss or damage to semen or embryos due to the escape of nitrogen

from a carrying flask.

If an animal dies, the farmer not only loses the value of the animal but the ongoing income it

produces from laying eggs or producing milk, for example. This loss of revenue is also

insurable.

Most livestock insurance in Australia uses a “fair market value” as the benchmark for payouts

in the event of a claim. It is possible, however, to obtain “agreed value” cover where you set

your own value on the animal – however such policies tend to have higher premiums.It is

also the case that many farmers do not insure their general livestock against mortality due to

the high rates of insurance, insuring for mortality only for their stud stock.

Premiums also vary depending on the availability and quality of veterinary care, the location,

the health of the livestock and the standard of care the livestock receives.

Livestock farming is of immense importance to Australia. Three months after the arrival of

the First Fleet in January 1788, livestock in the colony consisted of seven horses, seven cattle,

29 sheep, 74 pigs, 18 turkeys, 29 geese, 35 ducks, 209 fowl and (unfortunately) five rabbits.

By 1860, there were 25 million head of livestock in the country.

Today, agriculture is worth almost $50 billion a year to the Australian economy and the value

of farm exports, in 2010-11, was $32.5 billion – 54 per cent from crop exports and 46 per

cent from livestock exports.

No matter where in Australia you farm, if you’d like independent and professional advice

about insurance, contact EBM Insurance Brokers.

The above advice is general advice and has not taken into account your personal

circumstances, be sure to read the appropriate Product Disclosure Statement to ensure the

policy meets your individual circumstances.