Crop Insurance Basics - US Anything can be insured today; let it be a cat, car, or crop. Crop insurance has been in existence since the early 1930s. Federal crop insurance was established to combat the effects of the Great Depression and the Dust Bowl. If a farmer were to pick out crop insurance today, they would have many different options to choose from. Crop insurance provides a safety net for farmers by reimbursing them due to revenue or yield diminishing problems for their crops. The two categories of crop insurance are yield-based and revenue. These are a few examples of yield-based insurance policies according to the Risk Management Agency (RMA) of the USDA.
Agricultural insurance portfolio management - reinsurer's suggestions for Ukraine It is considered that big well spread ag insurance portfolio is more stable and profitable than small localised one. Preferably the portfolio should consist of average size accounts/policies (ag enterprises). Big amount of small policies will increase the portfolio servicing cost (monitoring, loss adjustment), insurance of big ag holdings can increase the risk accumulation and fraud possibility (for some Ukrainian holdings). Better to start building the portfolio of the “standard” most common in the market products = “mass products” (e.g. subsidized crop insurance). The non standard “experiments” (vegetable insurance, flower insurance) are acceptable when the main part of the portfolio is sustainable enough and ag department has enough experience.
Ukraine - Corn damaged by hail (fotos) Hail damaged crops in Cherkassy oblast on July 3 and 13, 2009. Corn got significant damage however forage corn was less affected. According to insurance experts, the farmers will see 10-15% of yield drop, in the worst case damage will reach 20%. Stil the farmers were lucky as cobs were formed and the plants continue caring for grain.
Assessing hail-damaged corn Recent hailstorms and high winds in this area have caused questions about the options farmers have for crop management during the rest of the growing season. Hail decreases yields by reducing stands as well as destroying leaves. The yield loss severity depends on the crop’s growth stage. Corn has an advantage over soybeans early in the season when hailed since corn’s growing point remains below ground until about the sixth-leaf stage. Young plants at this stage are not killed if only leaf or stem tissue is lost.
SystemAgro – Optimum conditions for multi-peril crop insurance The various systems of multi-peril crop insurance (MPCI) throughout the world are subject to different conditions which determine whether and to what extent a particular system is successful in the long term and can thus serve to stabilise the agricultural sector. SystemAgro identifies and specifies the optimum conditions for such success.
Agribusiness corporates can insure against volatility in grain volumes Major players in the agricultural supply chain have longstanding experience in managing risk, ranging from currency and price risk hedging to insuring against property and liability claims. Despite these efforts, earnings in some segments are still subject to substantial volatility, making it difficult to produce a steady return on equity, to create steady cash flows and to be able to invest in new ventures.
Presentation of Ukrainian agricultural insurance pool at the seminar in Kyiv Ukraine, July 8, 2008 Presentation was made on July 8, 2008 at the seminar on agricultural insurance in Ukraine. The Pool organized for proposition at the Ukrainian market of the quality agro insurance product according to the Law of Agro production market support and risks reinsurance among Pool members and at Western reinsurance market. According to Agreement the Pool members propose insurance products of the plants and Livestock insurance to Insured, developed using international underqriting Methodics and statistical information of the Ukrainian Statistical Committee
USA - The Average Crop Revenue Election (ACRE) Program The Average Crop Revenue Election (ACRE) Program that will begin in 2009 drew sharp criticism from the White House as being too costly—implying farmers would reap a bonanza by signing up. In actuality, it looks like a complicated program that is by no means a “slam dunk” from a farmer’s point of view.
Millionaires are the biggest loan defaulters in Lanka The biggest loan defaulters in Sri Lanka are the rich millionaires in Colombo and not the poor peasants in rural areas. The Bank of Ceylon (BoC) does not ask farmers to mortgage their land as collateral to obtain agricultural loans. Of the 1.2 million farmers in the country only 50,000 make use of the financial assistance provided by banks under the new comprehensive rural credit scheme where the interest rate is 8%. Around 96% of the farmers still depend on the informal financial sector where money lenders charge 6% - 15% interest per month
Humanitarian situation in Somalia is deteriorating quickly due to soaring food prices and worsening drought The humanitarian situation in Somalia is deteriorating quickly due to soaring food prices, a significantly devalued Somali shilling, and worsening drought. More than 2.6 million people, or 35 percent of the total population, are in need of assistance. Compounding the problem is a worsening drought in parts of south and central Somalia, as well as a deterioration of rangeland conditions in areas in the north due to an abnormally harsh dry season. The delayed and poor performance of the ‘Gu’ seasonal rains that usually fall from mid-April to June point to a well below normal main cereal harvest, which will lead to shortages and further price increases in locally produced cereals. Around 60 000 pastoralists, already struggling to cope with two consecutive seasons of rain failure, are in acute food and livelihood crisis.
07.06.2010 Adjusting Hail and Storm Damage on Maize seminar - September 8-10, 2010, Switzerland International Association of Agricultural Production Insurers offers a seminar on hail and storm damage on corn. The seminar is jointly organized by the association and Swiss Hail. the seminar will be conducted on September 8-10, 2010 in Egerkingen. Enrolment - by August 1, 2010. 12.04.2010 Remote Sensing Index-Based Crop Insurance Working Group meeting - August 10-11, 2010, USA The 2nd International Working Group On Remote Sensing Index-Based Crop Insurance will take place on August 10-11, 2010 in San Francisco, CA at the Fairmont Hotel. Practical technical issues related to implementing satellite derived index based crop insurance will be discussed.
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