How Much Does It Cost to Start a Livestock Farm?
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 hours ago
- 3 min read
Starting a livestock farm can be a rewarding business, but it requires careful financial planning. Costs vary depending on the type of animals, farm size, infrastructure, equipment, and labor.
Understanding startup expenses and necessary insurance coverage is key to building a successful and protected operation.
1. Land and Infrastructure Costs
Land is the biggest upfront expense. Factors influencing cost include location, acreage, and soil quality. You’ll also need infrastructure such as:
Fencing
Barns or shelters
Feed storage
Water supply systems
Explore Now: USDA Farm Land Cost Guides
Estimated Costs:
Land: $2,000–$10,000 per acre (depending on location)
Fencing: $2–$5 per foot
Barns/Shelters: $10,000–$50,000 depending on size
2. Livestock Costs
The type of livestock significantly impacts startup costs. Typical options:
Cattle: $1,000–$2,500 per head
Sheep: $150–$400 per head
Goats: $100–$300 per head
Pigs: $50–$300 per head
Chickens: $3–$15 per bird
3. Equipment and Feed Costs
Essential equipment includes feeders, waterers, tractors, grooming tools, and handling equipment. Feed costs depend on herd size and species.
Estimated Costs:
Equipment: $5,000–$20,000
Feed (first year): $500–$3,000 per animal
Find Out: Livestock Equipment Resources
4. Labor and Operational Costs
Depending on farm size, you may need full-time or seasonal labor. Consider salaries, training, and labor-related expenses.
Estimated Costs:
Seasonal labor: $10–$15/hour
Full-time farmhands: $25,000–$40,000/year per employee
Essential Livestock Farm Insurance Coverages
Protects farms against claims of bodily injury or property damage caused by farm operations.
Example: If a visitor or contractor is injured on your farm, this policy covers legal fees, medical expenses, and potential settlements or judgments.
2. Property and Farm Equipment Insurance
Protects a farm’s physical assets including buildings, tools, equipment, and supplies against loss or damage from fire, theft, or vandalism.
3. Farm Workers Compensation Insurance
Required if you have employees. Covers work-related injuries or illnesses that employees may sustain during employment. Ensures medical costs and wage replacement are covered.
Protects farm vehicles used in operations against accidents, property damage, and liability claims while transporting goods, equipment, or workers.
Covers the death of livestock due to accidents, disease, or natural disasters. Protects your herd investment and reduces financial risk.
Estimated Annual Costs
Insurance Type | Estimated Annual Cost |
Livestock Farm General Liability | $500–$1,500 |
Property & Farm Equipment | $1,000–$5,000 |
Farm Workers Compensation | $2,000–$10,000 (depending on number of employees) |
Commercial Auto Insurance | $800–$3,000 |
Livestock Mortality Insurance | $200–$1,500 (depending on herd size and species) |
6. Additional Costs
Veterinary care: $50–$500 per animal/year
Utilities: $500–$2,000/year depending on farm size
Marketing & sales (if selling directly): $500–$3,000
Struggling to market your business? Visit Contractor Back Office for website SEO and marketing support.
Our Services Include:
Final Thoughts
Starting a livestock farm requires a combination of financial planning, resource management, and risk mitigation. Understanding the full spectrum of startup costs—including land, livestock, equipment, labor, and insurance—helps you make informed decisions and avoid surprises. Partnering with Wexford Insurance ensures that your farm, employees, and animals are protected, giving you confidence to grow your livestock business sustainably.
Contact us today.
