Soaring Cattle Prices Put Farmers at Risk of Costly Insurance Shortfalls, Expert Warns

As cattle prices surge to record highs across the UK, a leading rural insurance expert is sounding the alarm: many farmers could be sleepwalking into financial disaster.

Source: agriculturenigeria

Toby Baker, of Lincoln-based firm Dallas Scott Davey, has warned that a growing number of British farmers are leaving themselves exposed to massive losses because their livestock insurance policies no longer reflect the true market value of their herds. While the price of cattle has climbed steeply over the past year, many insurance policies remain frozen in time—unchanged, outdated, and dangerously inadequate.

“Farmers are seeing cattle fetch thousands more at market than they did just a year ago,” Baker explained. “But if disaster strikes, they could find their payouts fall far short of today’s prices.”

The gap between insured value and actual value is widening fast. In June 2024, 476p per kilogram deadweight was considered strong for finished cattle. By May 2025, that figure had skyrocketed to around 650p. A store animal once covered for £1,600 might now sell for £2,400 or more. Some premium fat cattle are commanding over £3,000 in current markets.

Yet despite this dramatic shift, many insurance policies are simply rolled over from year to year, based on outdated figures. And that complacency could prove costly.

“The principle of ‘average’ in insurance means that if your livestock is underinsured, any claim will be reduced in line with the shortfall,” Baker said. “If your cattle are worth £3,000 but insured for £1,500, you’ll only get half of any claim. That’s a devastating loss—especially when it comes at a time of crisis.”

What makes this risk even more concerning is the growing unpredictability in the agricultural sector. With Dallas Scott Davey predicting continued volatility in livestock prices over the next two years, proactive policy reviews have never been more crucial.

“In times like these, cutting corners on insurance may feel like saving money—but in reality, it’s gambling with your livelihood,” Baker warned. “A conversation with a knowledgeable rural insurance adviser could mean the difference between recovery and ruin.”

As the agricultural landscape shifts, the message to farmers is clear: reassess your cover, stay current, and don’t let outdated policies put your future at risk.