Picture1For farmers and ranchers, livestock represents not only a source of livelihood but also a significant investment of time, effort, and resources. Just as with any valuable assets, it’s crucial to protect your livestock from unforeseen events that could jeopardize your operation. Livestock insurance provides a safety net, offering financial protection and peace of mind in the face of risks ranging from diseases to natural disasters. Livestock insurance is a specialized form of coverage designed to protect farmers and ranchers from financial losses resulting from various risks associated with their animals.

Products Offered


  1. Livestock Risk Protection (LRP) – Livestock Risk Protection is designed to protect against declining market prices. A variety of coverage levels and insurance periods are offered that match the time the livestock would normally be marketed.
  2. Livestock Gross Margin (LGM) – Livestock Gross Margin Insurance provides protection against the loss of gross margin (market value of livestock, or livestock products, minus feed costs). LGM uses futures prices to determine the expected gross margin and the actual gross margin. The price a producer actually receives at market is not used in these calculations.
  3. Dairy Revenue Protection (DRP): Dairy Revenue Protection insures against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level. The expected revenue is based on futures prices for milk and dairy commodities and the amount of covered milk production elected by the producer. The covered milk production is indexed to the state or region where the dairy producer is located.

Benefits of Livestock Insurance


  1. Financial Protection: Livestock is a significant investment, and the financial impact of losing animals can be devastating. Insurance provides compensation for covered losses, helping farmers recover and continue their operations.


  1. Risk Management: Livestock insurance allows farmers to manage the inherent risks associated with animal agriculture. It provides a safety net against unexpected events that could threaten the well-being of the herd.


  1. Business Continuity: In the event of a covered loss, insurance can be a lifeline for farmers, enabling them to rebuild and continue their operations without facing severe financial setbacks.

Choosing the Right Coverage


  1. Evaluate Your Needs: Assess the specific risks associated with your operation, considering factors such as the type of livestock you raise, your location, and the potential threats in your region.


  1. Work with an Insurance Agent: An insurance agent with expertise in agriculture can help you navigate the complexities of livestock insurance. They can assist in selecting the right coverage and ensuring that your policy meets your unique needs.


  1. Review Policy Details: Carefully review the terms and conditions of any livestock insurance policy. Understand the coverage limits, exclusions, and any additional features that may be included.


  1. Regularly Update Coverage: As your operation evolves, it’s essential to reassess your insurance needs. Regularly review and update your coverage to ensure that it remains relevant and sufficient for your current circumstances.

Livestock insurance is a critical component of risk management for farmers and ranchers. By providing financial protection against a range of potential threats, it helps ensure the stability and resilience of agricultural operations. As you care for your herd, investing in the right livestock insurance can be a proactive and prudent step towards safeguarding your livelihood and the well-being of your animals.

With more than 55 agents and 60 locations across the state of Montana and northern Idaho, Summit States Agency Group is equipped to guide you in important insurance decisions to protect what matters most to you.  To find your local agent, click here.

Disclaimer: The content provided in this blog is for informational purposes and should not be considered an offer for coverage. Each insurance policy is unique and may have varying terms, conditions, and exclusions. It is essential to consult with a qualified insurance professional or licensed agent for personalized advice tailored to your specific needs. This blog does not constitute a contract, policy, or guarantee of coverage. Always refer to your individual policy documents for full details.

Sources: https://www.agrisompo.com/products/federal-products/livestock-insurance/