Livestock Protection Program

One in three wholesale credit loans offered by Small Farmers Agriculture Cooperatives Ltd. (SFACLs) to farmers is invested in livestock, primarily cattle and buffaloes. Although animal husbandry is risky, it is also profitable. To minimize the risk farmers need to take, SFACLs had the initiative to start a livestock protection program. 



This is how it works: An animal evaluation committee administers the livestock insurance program. 25%  of the evaluated price of livestock is deposited as a premium in a livestock insurance fund by the farmers. 75 % of the premium is provided by the government as a grant through SKBBL and deposited into the fund. If an animal dies suddenly, 80 - 90% of the insured amount will be provided as compensation to the farmer.  The fund pays for rural livestock health workers, livestock health offices, as well as compensation.   


Until July 2019, total animals valued at NRs. 9.03 billion were insured, and Nrs. 587.2 million was collected as a premium. To date, Nrs. 527.3 million has been collected through the livestock protection  fund by SFACLs.