If you get a farm loan to pay for your cows you will have to get insurance. Alot of companies won't write a policy on just cows. They want other existing business too. My insurance is about $450 a year. That is a $20,000 herd policy with $100,000 liability. This insurance cost also includes my equipment (tractor, baler, hay rake and disc cutter) We haven't had insurance before I took out a loan but honestly we can't afford to be without it. We travel on the highway with our equipment so the liability insurance in pretty important and there are alot of crops (cotton, corn, beans, rice) around here. If our herd gets out and eats $10,000 of someone's crop, I don't want to have to pay for it.
Josh