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.
As public concern over pesticide use grows, pushed into the spotlight by the row over neonicotinoids and bees, Scotland's Rural College and the James Hutton Institute have launched new research into boosting plants' natural defences. The two-year collaboration, funded by the Horticultural Development Council, will assess the impact of plant defence elicitors – compounds that induce a natural defence response – on brassica and allium crops such as cabbages, Brussels sprouts and onions. The results will be of interest not only to large commercial growers but also to vegetable growers in gardens and allotments across the country who are looking for organic ways to keep diseases at bay.
Coffee output in India, Asia’s third largest exporter, may drop for the first time in six years after dry weather hurt flowering and cherry formation. Shares of exporters declined in Mumbai. The harvest in the year starting 1 October may be less than the record 315,500 tonnes in 2012-2013 as plantations of the robusta variety in some areas missed rains during the flowering stage. That would be the first drop in output since the 2007-2008 season, board data showed. Reduced supplies from India, where robusta accounts for 70% of the output, may help extend the advance in prices of the bitter-tasting beans for a second year.
Baling or ensiling freeze-damaged wheat to take advantage of drought-induced higher forage prices might be the best option for some producers. Producers would need to determine how much forage they have in the field and compare the economics of harvesting for grain to harvesting for hay. A producer will have to determine how much forage tonnage they can expect to get from their damaged wheat crop, and there’s not simple method to do that. If it was a pasture, forage would be estimated by taking a 12-inch quadrant and cut, dry and weigh the forage in that quadrant to extrapolate pounds per acre. But with a drilled crop, generally grown on 7- to 8-inch rows, that measurement has to be tweaked a little.
Extreme hot weather is affecting cotton crop, especially late-sown in both Punjab and Haryana. There are reports of burning of crop leaves in many parts of the major cotton growing districts in the two states where it is a major kharif crop after paddy and basmati and account for nearly 12-13% of India's total output of the fibre crop. Farmers are reporting burning of cotton leaves due to higher temperatures, which are hovering around 45 degrees celsius in the region, from Abohar, Muktsar, Bathinda and Mansa districts of Punjab.
Direct payments are dead. Long live King Crop Insurance.
If there’s a single theme to the farm debate before Congress, it’s this transition from cash subsidies to an ever-expanding risk-management system that requires producers to put some skin in the game but can still cost taxpayers dearly. On average, the government absorbs 62 percent of the premium cost and, in the case of one new product for the cotton industry, that subsidy rate will be as high as 80 percent. Indeed, the annual cost of the crop insurance program is expected to run near $9.2 billion under the Senate bill — more than double the old commodity title that was once the mainstay for agriculture.
With corn planting off to a very slow start this year, it's not surprising that very few people have been worrying about getting soybeans planted. Although in recent years, early planting of soybean helps increase yield potential, corn typically loses yield faster than soybean as planting is delayed. Consequently, it is appropriate to plant corn first, before soybean. According to trials run under relatively good conditions over the past three years, daily yield losses for soybean are about 0.3, 0.4, and 0.5% per day of planting delay for the first, second, and third 10-day period in May.
The Conference "Where the margin is" will be held on July 2-3, 2013, in the Benefit Plaza Congress Hotel in Voronezh. From 2009 IKAR has been the member of International agri benchmark network of agricultural research and advisory economists aiming to create a better understanding of global cash crop farming.
The latest information on crop insurance will be presented at the North Dakota State University Extension Service's 20th annual crop insurance conference in Fargo on Jan. 21. The conference will be held at the Ramada Plaza Suites. Registration opens at 7:45 a.m. Presentations begin at 8:30 a.m. and continue until 4 p.m.
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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