Lisa Newman from our Hexham office, explains how the right insurance can help protect high‑value pedigree livestock and the businesses built around them.
"At this time of year, I speak to a lot of farmers who are either buying or selling pedigree stock or relying on a number of high‑value animals as the cornerstone of their breeding enterprise.
With pedigree livestock values at record or near‑record levels, these animals have become one of the biggest single investments a farming business will make.
It goes without saying that any major investment brings significant risk, which can leave businesses exposed if something goes wrong.
Pedigree livestock as business-critical assets
Farming involves managing risk every day and many farmers simply accept that livestock losses are part of the job. But when the value of an individual animal rises, the consequences of that loss can have a real and lasting impact.
A pedigree bull, for example, is not just an animal. It represents breeding decisions made over generations, future calf crops, performance figures and income. If that bull is injured, becomes infertile or is lost altogether, the impact is not just immediate – it can affect the business for years to come.
Why pedigree insurance is important
People often assume that a standard farm policy or a breeding warranty will provide the protection they need. While warranties offer important protection, they are limited in scope. From the buyer’s point of view, responsibility for illness or injury still sits with them. From the vendor’s side, a bull failing to meet warranty requirements can mean refunding purchase money, along with associated costs.
With most breeds now averaging close to and over £10,000 for bulls and breeding cattle, insurance provides a vital layer of protection against those risks.
Insurance that reflects stock value
High‑value pedigree stock often requires individually specified insurance cover that reflects both its value and its role within the business. Depending on circumstances, this can include mortality, permanent loss of use in cattle, infertility in bulls and, where relevant, extensions such as government‑mandated slaughter.
The key is making sure cover is arranged at the right time and on the right basis.
One of the main advantages of working with a specialist agricultural broker is that we know the industry. Our H&H in-Livestock insurance product was created by people who understand farming, and it is available as stand-alone cover without any requirement to hold other insurances with H&H Insurance Brokers.
Our specialist livestock insurance team is on hand to provide quotations immediately following a purchase or sale, and are present at all major H&H Pedigree Sales so farmers can get advice and support straight away when they need it most.
Ultimately, insurance shouldn’t be an afterthought, it should be part of the purchasing decision.
Looking at the bigger business picture
It’s worth stepping back and looking at pedigree livestock within the wider business picture. More banks, accountants and professional advisers now expect livestock to be properly valued alongside land and buildings. In many cases, breeding stock represents a substantial proportion of the total business value, particularly in pedigree enterprises.
Failing to protect that investment doesn’t just increase risk in the short term, it can undermine longer‑term financial planning and resilience.
Protecting years of hard work
Livestock insurance is not about expecting problems but about ensuring that when the unexpected happens, it doesn’t derail everything else. The right cover gives farmers the confidence to invest, plan ahead and focus on running their business, without worrying that a single incident could undo years of hard work.
With spring sales underway, now is a sensible time to review both the value of pedigree stock and the protection around it. If your business relies on high‑value animals, it’s worth asking whether you could realistically absorb that loss if something went wrong tomorrow. If the answer is no, having an open conversation about insurance could make all the difference.
As pedigree values continue to rise and margins remain under pressure, recognising livestock as a key business asset has never been more important. Taking steps to ensure it is accurately valued and appropriately protected can help safeguard both the investment itself and the future of your breeding programmes."
Contact Lisa via email [email protected] or the Hexham office on 01434 622014.