Is cattle insurance worth it?

[Dozer guy]

I have a question for the forum,
Thinking of buying some cattle around 20 head. They won’t be pastured on are place it would be 50 or so km away. Don’t no much about ranching ( more of a investment) is insurance something I guy should be thinking about for cattle?

Thanks for help
Dozer

[Rancid Crabtree]

I have a question for the forum,
Thinking of buying some cattle around 20 head. They won’t be pastured on are place it would be 50 or so km away. Don’t no much about ranching ( more of a investment) is insurance something I guy should be thinking about for cattle?

Thanks for help
Dozer

Mortality insurance is probably not worth the cost in most cases.

Price insurance is probably worth looking at, protects your market risk which is the variable you have least control of. Google AFSC cattle price insurance.
The price insurance can protect you from major market moves like what happened in 2003-2004

[roper1]

Usually the premiums are high for this type of insurance. You talking grassers, or cows? Cattle prices are relatively high right now, more potential downside than up at this stage of the cycle maybe.

[pa_of_6]

Mr Goodnight and his buddy Mr Loving did not have any insurance when they set out on the trail from Texas.

I kinda like the cattleman spirit of doing it on their own.

I carry no insurance on my cattle and also have no market price insurance.

I do know that livestock insurance is quite pricey.
I have looked at it when I purchase breeding bulls, but once again, it isn't cheap. They will replace the bull but will do nothing about the open cows.

Just my 2 cents

[buckbrush]

I think pretty much any type of insurance comes down to how big of a hit YOU can afford to take.

In the big picture over a long enough period of time, no insurance would be worth it but...

If those 20 head happen to find their way on to a dug out with thin ice and they take a plunge can you afford to lose 20 head?

Insurance companies aren't in it to lose money.

Most of my big ticket items and my house/shop are insured because I can't risk having to replace them so it is worth the piece of mind for me. I have never insured an animal and can't see ever doing it.

[barsik]

speaking as a farmer I'd be very wary of this type of setup, unless you've known the operator for a very long time. 20 cows aren't going to get you a lot of profit after expenses and if your guy doesn't know cattle you can be out a lot of money, in addition to your original investment. the other side of the coin is he can really jerk you around financially if he wants to.

[josey]

We did insure ours, it wasn't very expensive, a couple of bucks a head.
Whatever you do, make sure you have a good fence. Losing a cow is BAD but having a cow cause an accident and you are talking liability and headache no end.

[HoytCRX32]

We did insure ours, it wasn't very expensive, a couple of bucks a head.
Whatever you do, make sure you have a good fence. Losing a cow is BAD but having a cow cause an accident and you are talking liability and headache no end.

This^^^