The rate of increase in the price of all classes of livestock should encourage farmers to review their livestock valuations in relation to insurance cover, according to one adviser.
Richard Henning of Abbey Autoline Insurance, said: “Currently the price of all the livestock categories maintained on farms across Northern Ireland sit at record-high levels.
“But it’s the pace at which this change has come about that has the real influence, from an insurance perspective.
“The risk of under estimating the values of livestock for which insurance cover is sought has always been an issue here in Northern Ireland. And in many ways this should not come as a surprise”.
Valuation figures
When agreeing a policy at the outset, the farmer is always left in a position of thinking ahead in terms of the relevant livestock valuations as time progresses.
For example, in the natural course of any farming year, weanling calves will develop into mature stores or finished beef animals, lambs are born and will further develop, and weanling heifers will develop to the point of calving herd replacements.
All of these changes bring about an increase in animal valuations. However, the last number of months has brought about rapid market changes that no one could have foreseen.
As a consequence, livestock valuation figures for herd and flocks cited for insurance purposes back at the beginning of 2025 – a mere three months ago – may already be well out of step with commercial reality.
“Given this fast changing reality, farmers may well wish to review the herd and flock valuation figures referenced in previously agreed insurance policies as a matter of priority,” Henning said.
TB
Meanwhile, the scourge of bovine tuberculosis (bTB) continues to significantly challenge both the dairy and beef sectors.
Approximately one in ten of Northern Ireland’s cattle herds are impacted by the disease at the present time.
And with this scenario comes the accompanying bTB restrictions.
Dairy farmers are very much in the firing line where this matter is concerned. Very quickly, they find themselves having to manage a significant increase in livestock numbers.
“Yes, reactor animals are fully compensated for, in terms of their direct market value, by the Department of Agriculture, Environment and Rural Affairs,” Henning said.
“However, this leaves the matter of insurance cover on the rest of the herd. The fact that animal numbers increase means that total valuation figures increase accordingly.
“This means that affected farmers facing the prospect of not getting the full valuation for lost animals if the insurance cover figure does not reflect the full valuation of the herd.
“And, again, insurance policies should be amended accordingly in these circumstances,” he added
