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.
Weeks before the harvest started last summer, farmers` rice paddies were hit by extreme weather. Temperatures of 95 degrees Fahrenheit baked Longtan village in north China for over a month, causing leaf yellowing and damaging grain production. As a result, their rice yields decreased by 20 percent compared with normal years. But they did not struggle to raise money for their next planting, which they did after previous crop failures. Instead, farmers waited at home for the money to come.
The Department of Agriculture - Philippine Crop Insurance Corp. Region 6 has allotted P30 million for the insurance of farmers and fisherfolk of Western Visayas whose agricultural crops and livelihood were damaged by typhoon Yolanda. The DA-PCIC board of directors has approved a resolution of providing full premium subsidy of P80 million for the insurance coverage of subsistence farmers and fisherfolk of hardly hit provinces.
Using satellite information to better understand and monitor natural catastrophes has gained pace in the insurance industry in recent years. This is, in part, thanks to a reduction in costs and a growth in understanding of the benefits. By 2020 the reinsurance industry would be widely utilising satellite loss assessments. Technology could be used to assess quickly, and process, crop insurance claims using the Global Risk Agriculture Intelligence (GRAIN) index
Weeks before the harvest started last summer, Li Ping's rice paddies were hit by extreme weather. Temperatures of 95 degrees Fahrenheit baked Longtan village in north China for over a month, causing leaf yellowing and damaging grain production. The changing climate has already left many scars on China's society. Data from its first national climate change adaptation strategy issued last year show that extreme weather events have killed more than 2,000 people each year on average since the 1990s.
The Philippine Crop Insurance Corporation (PCIC) in partnership with the Department of Agriculture recently launched the Subsidized Agricultural Insurance program for the priority provinces with the provincial, city and municipal agriculturists, farm technicians and the media. There are 20 priority provinces identified for coverage by the Department of Budget and Management. Among those included are three Cordillera provinces, namely Kalinga, Ifugao, and Apayao.
A plan in the new U.S. farm law to help dairy farmers limit losses from rising feed costs or falling milk prices may become a model in coming years for livestock producers who have resisted similar types of insurance. The plan, called the Margin Protection Program, takes a page from the popular multibillion-dollar government-backed crop insurance programs for grain, cotton and other crops. In short, MPP will create formulas to insure against loss of "revenue" rather than actual loss of animals.
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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