Not everyone has the capacity to overcome a bad year, farmers with equity below 75 percent are urged to seriously consider taking up multi-peril crop insurance while you still can. If you want cover, act now.
It's cold comfort now but farmers, unexpectedly exposed to frost at the end of last season’s fantastic run, could have avoided being severely affected if they had multi-peril crop insurance cover in place.
Farmers are reminded that the Australian Government has committed to rebating half ($2,500) of the estimated $5,000 in costs associated with seeking independent advice, and processing your application for multi-peril crop insurance cover, through the Managing Farm Risk Programme.
We advise farmers to seriously consider paying an estimated 7 percent of the value of the crop cover in premiums, if it helps manage income risks, build resilient agricultural businesses and provides peace of mind against pests, droughts and flooding that you’ve never had access to before.
The rebates are not for insurance policy premiums.
More information from the Australian Government Department of Agriculture and Water Resources is available here
Multi-peril crop insurance
While it may not be suitable for all farm businesses, we recommend those who would benefit to consider taking out multi-peril crop insurance cover before crops go in over the next few months.
Remember, those who leave it too late to invest in multi-peril crop insurance and suffer a bad start to the year may risk being refused cover later on.
If you want Crop Insurance cover, it’s best to act now.
Since emerging onto the market in 2014, following considerable industry lobbying, the first pay-out under multi-peril crop insurance coverage was made in January 2015.
For example: Following a failed season, one Queensland farmer received a $944,000 payout while two farmers in New South Wales and Victoria received more than $300,000 each.
Please contact your RSM adviser for more information.