Step Right Up to Insure that $15,000 Bull


In a Northern Ag Network interview earlier this year, Bill Pelton of Pelton Livestock discussed how much money was just too much when buying a bull this spring.  He said that, in theory, you can pay up to four times the price of a steer calf and make it economically feasible.
No rocket scientists needed.  Steer calves in 2014 went for top dollar and 2015 is showing all the signs for a similar payout.  This means ranchers do have a bit more of a theoretical budget when shopping for new genetics.
Whether you pay $8,000 for a bull or invest in the $240,000 whopper that just topped the Holden Hereford sale, you want to protect your investment.  Tyler Holland with PayneWest Insurance out of Bozeman, Montana says that there is an insurance policy out there that helps to transfer your risk.
Holland told Haylie Shipp in a recent interview that there are full mortality and full loss-of-use policies for breeding bulls.  Size, color, and shape don’t matter as long as the animal is healthy.
Just like buying a new pickup brings about a higher insurance premium, the same is true for a shiny new bull.  Holland explained that the premium is 10{18648621dc58566f60964eb5074c58f5f97501fe95033d5d25ee4862e704a74a}, or $800 on top of the price of an $8,000 bull.
One thing to note, though, is that this price may not be just yours to shoulder.  Holland says a lot of buyers and sellers are splitting the cost of this insurance.  It’s an added incentive for buyers.  Sellers also get a bit more of a guarantee that, if something should go wrong, the costs of replacing the bull are already accounted for.
For more information, talk to your insurance agent or contact Tyler Holland


© Haylie Shipp 2015

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