Revenue Insurance: Covering Yield and Price Risks. Basic Requirements from an Insurance perspective
Managing price risk with crop revenue insurance has attracted much attention in recent years, with only two successful schemes (USA and Canada) indicating the factors most critical for success: ample regional yield-price information, effective ways of price discovery and – most importantly – extensive public support, both for regulation and finances.
Unseasonal rains and intense hailstorm along with stormy winds destroyed ready to harvest crop in Aurangabad district of Maharashtra, bringing misery to farmers. The storm comes as a setback especially to the farmers whose hard work has been ruined as most of the ready to harvest crops including rabbi, wheat, jawar, gram has completely been destroyed.
São Paulo's mango growers are facing difficult times as they are having serious productivity problems because of the weather. Additionally, the low production has also affected prices. The intense cold weather and last year’s rains affected production, so producers might have losses of up to 50%. This year's harvest would be much lower than the last one. The last harvest amounted to 500 tons of mango, while this year's production is not expected to exceed 250 tons.
Iowa State University Extension climatologist is forecasting a 166 bushel per acre national average corn yield for 2014, but in the coming months that could change. Sea surface temperatures that are warmer than normal indicate an El Nino condition that calls "the friend of the Midwest farmer." El Nino generally brings mild growing conditions with a 70 percent change of an above trend line yield. When the ocean temperatures cool, it brings a La Nina condition with harsher Midwest winters and summers.
As the flooding covering huge areas of farmland in the south of England and elsewhere caused by the record rainfall over the winter months recedes, farmers are counting the cost in terms of damage to crops, stock machinery and buildings, infrastructure such as damaged flood defences, riverbanks, fences, gates and so on. Insurance claims from the flooding are expected to run into hundreds of millions of pounds.
The recent unseasonal rain has caused heavy damage to Kesar mango crops in Marathwada region, growers have estimated that almost 50% of the fruit has been lost and it will affect their export target. The summer delight may not even be seen in large numbers in the local markets. The areas affected by rain will witness a 50% dip in annual mango production, while those affected by hailstones will lose their entire crop. Kesar mango-growing areas in Paithan and Sillod in Aurangabad district are the worst-affected by the rough weather.
Excessive cold and the prospects of freeze-thaw issues in the southern Plains are adding to wheat market uncertainty heading into the spring. Freeze damage is possible in western North Dakota, with insufficient snow cover and frost depth at 7 feet into the ground, affecting water lines on farms. North Dakota winter wheat can’t be insured until spring, to prove that it could be a viable stand. If the wheat doesn’t survive, farmers can shift to a spring wheat crop or something else.
On March 6, at 2:00 p.m. Eastern free webinar hosted by Purdue’s Center for Commercial Agriculture – 2014 Crop Insurance Decisions will be held. Purdue Economists Roman Keeney, Michael Langemeier and Jim Mintert will lead the webinar and review the 2014 crop insurance decisions faced by Midwest corn and soybean producers. Experts will provide insight regarding how to choose coverage that best fits your farming operation. They will also provide a brief overview of the new Farm Bill, focusing on the new Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) that will be available in the future.
The National Center for Appropriate Technology (NCAT) and the National Sustainable Agriculture Coalition (NSAC) will host an important national webinar on Jan. 23, to discuss the U.S. Department of Agriculture's (USDA) recent efforts to assure greater uniformity and clarity on its policy related to farmers who currently grow cover crops or may grow them in the future. The webinar is primarily geared toward providing answers to questions from farmers and farm organizations, but participation is open to all, including certified crop advisors, crop insurance agents, and others.
Currently Ukrainian insurance companies are actively insuring winter crops. Contracts are signed mainly for wintering period until spring. In Western Ukraine experts visited fields of potential clients. At some fields canola is overgrown and such crop has minimal chances to survive winter. Pictures 15.05.2012 Ukraine - Drought at the East of Ukraine, winter wheat suffers
Experts conducted surveys of winter wheat at the East of Ukraine. They established impact of drought. The soil does not have the sufficient amount of moisture which can be the reason of crop kill.
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