Cattle Ranch Insurance 101

Beef is big business throughout the United States, ranking number one in the world in cattle production. Cattle production accounts for nearly $80 billion in cash receipts. That means America is home to the world’s largest fed-cattle industry. In fact, we are also the world’s top beef consuming country. 

Arkansas plays a large role in America’s cattle industry, with 1.7 million head of cattle on over 28,000 farms. Which leads to Arkansas being ranked 12th nationally in beef cows on farms, generating over $426 million. Like all major businesses, cattle ranching comes with major rewards and major risks. Ranchers need to be certain they are covered against those risks.

Farm Bureau Insurance in Arkansas offers our Ag Promise Farm Policy to cover your cattle operation. Whether you are concerned with insuring your structures, equipment, livestock, supplies, liability, or everything above, our policy has the coverage you need. Your agent can review your farm to help you select the coverages that best suit your needs.

Cattle Ranch Insurance Considerations

Homeowner policies will not cover your farm equipment. You want to make sure you have a policy in place that will cover all of your farm operations. When speaking with an agent about insuring your cattle ranch, make sure you discuss the following coverage areas:

Weather-Related Damage

Did ice and snow cause the roof of one of your buildings to collapse? Or did a severe windstorm or tornado cause damage to structures and equipment? Did lightning cause a loss to your herd? Weather perils like lightning, wind, snow, and hail can be detrimental to your farm. Make sure your policy will cover the cost of repairs and your cattle. Keep in mind, if your ranch is within a flood zone, you may need additional flood insurance.

Loss of Income

Damage to property, equipment, or some other unforeseen circumstance can cause you to lose income. Ask your agent if your policy will help fill in the gaps.

Replacement Coverage

Replacement Cost Coverage is an optional coverage that allows you to replace the critical structures and equipment on your ranch by not deducting depreciation. If a fire were to burn down a barn, you would be able to rebuild that barn for what it costs today. Ask your agent which pieces of your property qualify for this coverage.

Theft Coverage

Ensure that your policy covers equipment, farm personal property, or animals lost to theft.

Worker’s Compensation

Since Arkansas is one of fifteen states that do not legally require worker’s compensation for agriculture workers, it’s a good idea to carry Employer’s Liability Coverage.

Liability Insurance

General liability will cover you against personal injury and property damage that occurs on your ranch. It can also help cover you in the event of lawsuits alleging injuries or damage (including pollution if coverage is selected) suffered by others. In some cases, the state or county government may also consider you liable for pollution events that occur both on and off your property. Having liability coverage will protect you if your cattle wanders onto the road and causes property damage to an oncoming car.

If you are a cattle rancher looking for quality insurance coverage, or just have some questions about the coverage options available to you, contact one of our agents using our Agent Finder.