Pedigree Query

I have many questions about no guarantee seasons.

If you had a mare you wanted to breed & sell, would you go the traditional LFG route, knowing you lose the guarantee if you sell the mare, or would you negotiate with the stallion manager for a NG season? In fact, if the mare is entered in a sale but RNAs, does the LFG stand, or do you generally lose it by just entering her in the sale? [I know the contract will say, but this is all hypothetical so far because I'm trying to figure out how these things work.] And what percentage of a LFG season would you expect to pay for a NG season?

Any tips or additional information would also be appreciated.

Like so many things, it depends.

First: don't forget that the LFG protects you in case your mare doesn't get in foal at all. So even if you were planning to breed and sell, that's something to consider.

Generally speaking, the LFG goes away as soon as a mare is entered in a sale. BUT...different farms have different policies. Some keep the LFG until the mare actually ships off the farm. Others will reinstate it if the mare is entered and withdrawn. The best thing to do is talk to the farm in question and find out how they usually handle things.

Another option to think about is getting a NG season, then insuring the prospective foal. (This option doesn't help you if your mare doesn't get in foal.) That way you're covered through the sale and--if the mare comes home--through the birth as well. That kind of insurance is expensive, however, (more or less 14% of stud fee) and will eat up some of the savings you got by taking a NG season.

Very generally speaking, I would expect a NG season to be around 60% of the price of a LF season. But this time of year--and this particular year--all sorts of things are negotiable. Again, talk to the farm in question. You might be surprised at the kinds of deals they're offering.

[quote="LB"]Like so many things, it depends.


Another option to think about is getting a NG season, then insuring the prospective foal. (This option doesn't help you if your mare doesn't get in foal.) That way you're covered through the sale and--if the mare comes home--through the birth as well. That kind of insurance is expensive, however, (more or less 14% of stud fee) and will eat up some of the savings you got by taking a NG season.

Very generally speaking, I would expect a NG season to be around 60% of the price of a LF season.

Good advice. If you go the NG and buy Prospective Foal insurance, if the mare RNA's you keep the insurance coverage to protect you, if she sells then you cancel the policy and get a rebate on the premium. You should check what the numbers will actually be based on mare age, history etc.
The larger the stud fee the better the margin usually.

Hi Currently Red,

You pose a set of very good and important questions that have, do or will affect many on this forum.

LB makes several good points and is correct that the policy depends on the farm issuing the Live Foal contract. HPKing mentions some insurance options.
1 - NEGOTIATE your needs before you sign the contract. Don't be capricious; only ask for what you are certain you will need. Farms have a way of remembering every favor that they've done for you.
2 - READ your contract (preferably before signing). If the terms aren't specific about your situation then contact the farm.
3 - DISCUSS your situation with the farm. Even if it's in the contract, some farms will and do make accommodations.
4 - CHECK your mare for pregnancy status before initiating any action that will void the LF guarantee.

Many of the farms that I deal with consider 'intent to sell' the mare when she arrives at the sales ground at which point the Live Foal guarantee is voided AND payment of the stud fee when the mare is sold (whether she sells for enough to pay that fee or not).

Speak to the stallion farm before you enter a mare in a sale and see if they will allow you to maintain the Live Foal guarantee in the event that you buy the mare back. Remember, once the mare arrives at the sales ground that the stallion farm has, contractually, fully earned their stallion fee.

Insurance:
If you’re buying the in-foal mare you may be able to purchase ‘Prospective Foal’ insurance that covers you against the loss of the foal. In effect you’re buying the live foal coverage on sales mares that no longer carry that guarantee from the stallion farm.

Some companies offer ‘Whole Foal’ insurance that is actually a combination of policies like Stallion Availability, Conception and Prospective Foal. Used in combination with a no-guarantee season you could have broader coverage than a live-foal guarantee season at a lower cost.

My advice would be to speak with a qualified equine insurance agent about the Insurance options that are available and how they might be used to protect your interests. Don’t assume that all equine insurance is the same. Your agent should have a clear understanding of your needs and be able to show you how you could benefit from the specific coverage of the companies that he represents. Tell her your situation and see what’s she has for you.

[email protected]

Regards,

Pete

Belated thank you, Pete, for the good advice.