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.
The Food and Agriculture Organization of the United Nations (FAO) is urging countries to step up their monitoring, reporting and prevention of one of the world’s most destructive banana diseases, Fusarium wilt TR4, which recently spread from Asia to Africa and the Middle East. The disease, also known as Panama disease, has the potential to spread to Latin America and poses a serious threat to the global production and export of the fruit.
Just a matter of a few degrees can make or break the peach crop in Porter. But they’re taking to the sky in hopes they can prevent any damage these temperatures could leave behind. Farmers say 28 degrees would just cause some minor damage to about 10 percent of the crop but, if it was to drop to 25 that might kill 90 percent of the peaches. That could kill a lot of their profit.
The overnight freeze could have a significant impact on Oklahoma’s wheat crop, which already is suffering from the prolonged drought. The western half of the state — the main wheat-producing area — was in a hard freeze warning issued by National Weather Service from 1 to 9 a.m. today. What damage is suffered by the crop from the freeze probably won’t be apparent for another week to 10 days. The freeze also could have an impact on canola, another major crop in northwest Oklahoma.
Northern Queensland is clearing up after Cyclone Ita brought winds of up to 230km/h (140mph) to north-eastern Australia. It is the strongest storm to hit since Cyclone Yasi, which struck in 2011. Previously classed as a category-five storm, Ita was later downgraded by the BOM to category one. Insurance companies are already expecting damage bill claims from Cyclone Ita could reach $1 billion in North Queensland after it ravaged sugarcane and banana plantations over the weekend.
China will intensify its efforts to promote crop insurance, with insured farm produce to cover 60 percent of the country's cultivated land by 2020. The country will improve its crop insurance mechanism, especially services for the animal husbandry and planting sector, in a bid to guarantee food security. Insurers will be encouraged to cover farm produce prices, rural houses and infrastructure. The bureau is also mulling subsidies for insurers to promote agriculture-related business.
The Australian Banana Growers Council (ABGC) has reported industry-wide crop losses of around 5% across North Queensland’s banana plantations, as the first preliminary estimate after Cyclone Ita passed through Innisfail and Tully on Sunday morning. While the average stood at approximately 5%, some farms had registered more serious crop losses. There had been reports of minor losses of up to 10% cross the Tully growing region, and little damage further north at Innisfail and west of Cairns on the Atherton Tablelands.
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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