Farmers are being urged to reassess their livestock insurance cover due to rising cattle values. Toby Baker, a seasoned rural insurance specialist at Dallas Scott Davey in Lincoln, has issued a timely warning to farmers across the UK amid a sharp increase in livestock prices, cautioning that many may now be unknowingly underinsured.

Toby said: “Livestock prices have increased over the past 12 months, with significant rises recorded across all classes of cattle – from dairy herds and suckler cows to store cattle, prime fat stock and calves. However, insurance policies are often left unchanged, failing to reflect the true current market value of these animals."

“As cattle prices continue to strengthen, an increasing number of farmers no longer have adequate insurance cover for their livestock,” Toby said. “Many policies are renewed annually without review, despite dramatic shifts in value throughout the year.”

Toby highlights how in June 2024, 476p per kg deadweight was considered a strong market price for finished cattle. Just 11 months later, that figure surged to around 650p per kg. Store cattle once insured at £1,600 may now be worth £2,400, while top-end fat cattle have reached upwards of £3,000 at some markets.

Toby added: “The issue lies in the principle of “average” in insurance – if livestock is underinsured, any claim will be reduced in proportion to the shortfall. The result can be a costly surprise at the worst possible time. There is a legal duty of ongoing disclosure, and failing to update a policy could lead to significant financial loss.”

Looking ahead, Dallas Scott Davey believes that the cattle sector will need to brace for further volatility over the next two years, making proactive insurance management more important than ever.

“While it’s tempting to keep premiums low, the risk of being underinsured could far outweigh any short-term savings,” Toby said. “We strongly advise routine consideration and discussions with an experienced rural insurance adviser to ensure that cover is appropriate and are urging all livestock farmers to review their insurance policies and reassess the sums insured."

"In a changing agricultural landscape, maintaining accurate cover is critical to protecting the financial stability of rural businesses.”

For expert agricultural or commercial insurance advice call 01522 449711 or visit www.tldallas.com/dallas-scott-davey