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07.07.2014

USA - America’s golden state runs dry and farmers are struggling to survive

At Harris Farms in California’s Central Valley, it is not difficult to discern the effects of the state’s continuing drought. Fields that in previous years would have been lined with tomatoes or broccoli now contain nothing but brown earth. Around two thirds of the farm’s 14,000 acres are fallow, and for the first year since it started to grow salad leaves more than three decades ago, the farm has planted not a single head of lettuce.In a normal year, said its executive vice-president, William Bourdeau, Harris Farms plants 3,000 acres of lettuce. “On a good yield you get about 1,000 cartons of lettuce per acre. On 3,000 acres that translates to about three million cartons of lettuce.“And each carton contains 24 head of lettuce, which equates to around 72 million heads of lettuce that we didn’t grow and put into the market this year. And that’s just one of our crops. And we’re just one farm.”California grows almost 70 per cent of America’s lettuce, which has gone up in price more than any other fruit or vegetable this year. It is no coincidence that in its regular forecast, the US Department of Agriculture estimated last week that fresh fruit and veg prices would rise by 6 per cent this summer.The three-year drought afflicting America’s South-west has already affected California’s farming communities, but it is now beginning to be felt by consumers in the US and beyond.The whole state is officially in “severe drought”, and up to a third of it is in “exceptional drought”. In 2013 less rain fell on California than in any year since it achieved statehood in 1850. The region’s rivers and reservoirs are at their lowest ebb ever. Outside the state capitol in Sacramento, the lawns have been allowed to grow brown, while the Getty Museum in Los Angeles recently drained its water features and turned off its fountains.While the drought may dent some aesthetics in the big cities, it is most deeply felt in the Central Valley, California’s agricultural backbone. The state’s $45bn (£26bn) farming industry produces almost half the fruits, vegetables and nuts grown in the US, and to do that it uses 80 per cent of California’s water. Almonds alone account for 10 per cent of the state’s water use – not surprising, given that California produces 80 per cent of the world’s almonds.With water becoming more and more expensive, California farmers have allowed 500,000 acres of land to lie fallow this year. The consequences of the drought are stamped on signs at the roadside up and down the Central Valley. They read: “No Water = No Jobs”, and “No Water = Higher Food Costs”.The California Farm Bureau has estimated that the average American family should expect to spent $500 more on food in 2014, because of the water shortage.Professor Richard Howitt, an expert on the economics of water management at the University of California, Davis, believes the impact of the drought on food prices will be modest this year, but could become more pronounced in 2015 if the climate fails to improve. “Fruits, vegetables and nuts are all such valuable crops that farmers will pay up to $1,000 per unit of water – about 10 times more than normal – in order to keep growing them,” Professor Howitt said. “But if we don’t get a good El Niño this winter, then the groundwater will get so low that some wells will start to go dry. That would cause a great deal of heartache and significant crop loss. I don’t expect big drought-induced shifts in food prices this year. But next year, yes.”Environmentalists have accused California’s agricultural industry of damaging coastal ecosystems with its unquenchable thirst, but the farmers blame their water woes in large part on what John Harris, the chief executive of Harris Farms, described as “unreasonable” environmental restrictions. “We’d like to see more attention paid to human needs versus the fish needs,” Mr Harris said.In February, President Obama’s administration announced a $200m drought aid package for California. But that will be of little use in combating the effects of what some scientists fear may be a “mega-drought”, lasting as long as 200 years.“On average, it was 15 per cent drier over the last 1,000 years or so than in the 20th century,” she said. “Even if it reverts to that norm, it will be a hardship. But if we look back to medieval droughts, the region was 40 to 50 per cent drier.”Meanwhile, man-made climate change exacerbates the effects of cyclical drought: “On top of the drought we have warming, which is going to cause yet more dryness,” Professor Ingram said.So what will California’s farms do if the present conditions continue, or worsen? As Mr Bourdeau put it: “I’m not sure how you have a farm, if you don’t have any water.”Source - http://www.freshplaza.com/

07.07.2014

Spain - Hailstorms hit Lleida once again

A front of nearly simultaneous storms brought water, wind and hailstones the size of hazelnuts two days ago to the areas of Les Garrigues, Pla d'Urgell and Segrià in the province of Lleida, causing significant damage to the fruit orchards. It was the tenth hailstorm that hit Lleida's fields this season.The most affected municipalities were Sudanell, Sunyer, Alfès, Seròs, Torres de Segre and Alcarràs (Segrià), Les Borges Blanques, Puiggrós, Arbeca and Juneda (Garrigues), Mollerussa, Vila-sana and Miralcamp (Pla d'Urgell). Some of these towns had already been affected by hailstorms since late May.The number of hectares affected has not yet been quantified, but according to Xavier Gorgues, head for fresh fruit of the Growers Union (UP), the losses will be substantial in areas where hail has fallen more intensely, where the main crops affected are stonefruit varieties, such as nectarines, flat peaches and early peaches, whose harvest seasons are currently in full swing.Source - http://www.freshplaza.com/

07.07.2014

Italy - Temperature changes improved melon quality but also favoured a deadly enemy

"It must be at least 15 years since there has been such fierce attacks by Pseudoperonospora cubensis on melon and watermelon crops. We are keeping the situation under control, but fields have been destroyed in both Northern and Southern Italy," says Bruno Francescon, entrepreneur.The major cause for the spreading of the fungi is unstable weather. "Humidity favours fungi, especially when it rains in the evening. It is a real paradox because these same alternating temperatures also improved the quality of the fruit."According to the entrepreneur, it is still too early to make an assessment: "we will have to monitor the situation in the next few weeks. Of course, if it keeps on raining like this, it will be like adding fuel to the fire...a change in the weather is the only thing that can help, as there are no known treatments."Source - http://www.freshplaza.com/

07.07.2014

India - Farmers may lose standing crops on 2.13 lakh ha

Standing crops in over 2.13 lakh hectares sown during the Kharif season in Mysore district may wither if there is insufficient rain in the next 15 days. Except for Nanjangud taluk, which received normal rainfall, all six other taluks in the district have received less rainfall. Owing to failure of monsoons, there is a chance that farmers may lose standing crops.Mr. Shivakumar, Deputy Director of Agriculture, told The Hindu that the department would wait another week and if there was no rain by then, the department would take up a drive to motivate farmers to go in for alternative cropping system.Horse gram, ragiIt will educate farmers about the pros in taking up alternative crops such as horse gram, beans and ragi and making good on losses incurred, he said and added that the department had ensured that seeds and fertilizers would be available to the farmers if they go in for alternate crops.The total targeted sowing area in the district is 4.19 lakh hectares, of which sowing has been completed in over 2.13 lakh hectares. Standing crops require good rainfall and at least two or three showers may rejuvenate the standing crops, according to the agriculture officer.The Deputy Director said that the annual normal rainfall of Mysore district was 801.4 mm and average expected rainfall till July 1 was 319.1 mm.This year, only 281.1 mm rain has occurred so far. According to the Karnataka State Natural Disaster Monitoring Centre, Mysore may get rains by July 10. Average rain fall in H.D. Kote taluk till July 4 is 395.1 mm, whereas only 326 mm has occurred. Other taluks have also received less than expected rainfall.Mr. Shivakumar said agricultural operations in the district had come to a halt owing to lack of rain in the past one and a half months. He noted that noted that agricultural operations in most parts of the district which are rain fed might be thrown out of gear if the dry spell continued for one more week.Date extendedThe last date for insuring crops had been extended till July end, Dr. Shivakumar said, calling upon farmers to insure their crops immediately.He directed the farmers to contact their nearest Raitha Samparaka Kendras and banks to get their crops insured so that even if they incur crop losses, a major portion may get reimbursed.Source - http://www.thehindu.com/

07.07.2014

India - Lack of rains renders 15 lakh hectares of cotton fields in state useless

Nearly 15 lakh hectares of cotton plantation in Maharashtra have dried up and gone to waste. Farmers claim they had sowed seeds in June, like every year, but the lack of rainfall means the seeds have not germinated.Farmers claim the seeds are now completely useless. “In the past, we used to count rainfall in inches in the state. But now, we are measuring the same in centimetres. In Maharashtra, cotton farming is carried out on 44 lakh hectares of land, but this year cotton was sown on only 20 lakh hectares.Even in this, most of the planted seeds haven’t germinated because there were no rains,” said Kishore Tiwari, founder of the Vidarbha Jan Andolan Samiti (VJAS), an NGO that has been monitoring issues affecting the farmers’ community in Vidarbha.The state agricultural commissioner, Umakant Dangat, also took the same line. “We already are late by a month, which means the yield will be adversely affected. Also, if we sow the seeds late, the plants become prone to pests and other diseases. However, I am hopeful that the rains will surely come and we will be able to get the productivity desired,” said Dangat.No more cottonBut, it seems Dangat is unaware that farmers in rural Maharashtra have already given up hopes on cotton farming, at least for this season. “Farmers want to carry out re-sowing but not of cotton, because the time for cotton farming is gone now. They want to re-sow other crops such as pulses.But, that’s possible only if they get help from the government, as they have already spent money on cotton farming and unless the state government provides farmers with some sort of subsidy, they cannot invest in re-plantation,” said Tiwari.Tiwari believes the condition is grim for farmers in parched Vidarbha cotton being the cash crop that brought in the most money for them. He expects yields to drop by 50 per cent. He estimates it costs about R30,000 to cultivate the crop on a hectare of land, and that farmers have no money to bear the costs of another round of planting seeds of another crop, unless state authorities lent a helping hand.However, the state feels some of the plantation can still be saved. As per Dangat, nearly 3-5 lakh hectares of cotton farms are safe, as these fields have access to drip irrigation. Yet, this, too, is largely dependent on the monsoon.“I am hopeful that farmers will come up with some innovative steps and the government shall help them in every possible manner, with schemes and policies available with us from the central and the state government,” said Dangat.An official from the department of agriculture told that the state produced 95.3 crore kg bales of cotton, with each bale fetching nearly Rs 35,000, last year.Source - http://www.mid-day.com/

04.07.2014

Pakistan - Corruption and poor design threaten crop insurance scheme

Pakistani farmers and agricultural experts are objecting to a new government insurance plan designed to compensate farmers for loss of crops due to natural disasters, saying it will not help the small-scale farmers who are most affected.Hailstorms, torrential rains, floods and heavy winds destroy thousands of acres of standing crops across Pakistan each year, leaving thousands of families in economic peril – and the problem is growing worse as climate change brings more extreme weather.Ashfaq Abbasi, 57, a farmer in Rawalpindi district in Punjab province, has a fruit orchard on two acres (0.8 hectares) of his land.“My crop of apricots and plums was completely damaged by a hailstorm in May along with (the crops of) hundreds of other farmers, but there is no system of compensation,” he said.After the loss of his crop, Abbasi is now working tending buffalo in the suburbs of Islamabad, Pakistan’s capital, in order to earn money to support his family.“Had there been a crop insurance scheme, I wouldn’t have faced this ugly situation,” he said.Successive Pakistani governments have proposed crop insurance programmes for small-scale farmers, but none of the plans has advanced beyond a pilot project.LOOPHOLESNow, however, the government of Prime Minister Nawaz Sharif has allocated 2.5 billion Pakistani rupees ($25 million) in its fiscal year 2014-15 budget for an insurance scheme – but farmers and experts say it has numerous loopholes, and they are sceptical it will help those who need it most.Farmers with up to 25 acres of land who obtain loans for the production of five major crops – wheat, sugarcane, rice, cotton and maize – will be eligible to take part in the scheme.Around 91 percent of farmers in Pakistan fall into this category, said Hamid Malhi, a director at Farmers Associates Pakistan, a nongovernmental organisation for farmers.The government hopes that around 700,000 agricultural households will benefit from access to insurance, according to details released in the budget last month.However, Sarfaraz Ahmad Khan, president of the Kisan Board, another farmers’ non-governmental organisation, predicted the scheme will be of little use because he believes the government lacks the marketing strategy or infrastructure to sign up subsistence farmers in rural areas of the country.More than two-thirds of Pakistanis live in rural areas. About 68 percent of them are employed in agriculture, representing 40 percent of the country’s total labour force.NEED FOR A DISASTER DECLARATIONKhan said that a further barrier to the proposed insurance working effectively is that a farmer who has lost crops to extreme weather conditions cannot receive an insurance payout unless the government declares an entire district or sub-district a disaster zone – something he said it rarely does in rural and remote areas.“The governments design such schemes to get political mileage instead of benefiting the farmers,” he charged.What is needed instead, Malhi suggested, is insurance that covers damages based on a farmer’s crop yield – though assessing that on an individual basis could be time consuming and difficult.In the past 10 years, the government has declared 70 disasters in Punjab, affecting 10,000 villages, as well as 10 disasters in areas of Sindh province and 22 in parts of Khyber Pakhtunkhwa, while Balochistan was affected by drought for seven years, according to a report by the State Bank of Pakistan.Zafar Altaf, a former secretary of the agriculture ministry and former chair of the Pakistan Agricultural Research Council, pointed out that the government is already required to compensate farmers for crops damaged by natural disasters, under legal provisions known as the Land Administration Manual.The manual includes a compensation act for crops damaged by hail, wind, floods or excessive rains. But these provisions are not put into practice, Altaf said.“The government should implement the ... act to compensate growers instead of launching a separate insurance scheme,” he said.MUST TAKE A LOAN TO QUALIFYCritics also point out that farmers can only benefit from the new scheme if they have taken out a loan from Zarai Taraqiati Bank, a state-owned agriculture bank, to buy seed, fertiliser or pesticides for their crops.According to the bank’s annual report, 64 billion rupees ($650 million) in loans were disbursed to 406,000 farmers across the country in 2012, the latest year for which figures are available.Malhi said crop insurance should not be conditional on taking out a loan, because only 3 to 4 percent of farmers finance their planting in this way.Pervaiz Amir, an environmental expert and former member of the Prime Minister’s Task Force on Climate Change, said he was concerned that “such schemes are always open to corruption and geared to benefit big farmers.”He suggested the government, to benefit small-scale farmers, should instead try to improve things like access to markets and crop yields.Admitting flaws in the scheme, Muhammad Rizwanullah, a senior vice-president at Zarai Taraqiati Bank, said the bank has no power to improve on the planned insurance because it only serves as a liaison between the State Bank of Pakistan and insurance companies.Rizwanullah acknowledged that one serious problem facing the programme is that the bank is required to distribute compensation equally to all insured farmers in an affected area, irrespective of the degree of damage each has suffered to his crops.“The farmers never get full claim for their insured crops, and it needs to be fixed,” Rizwanullah said, adding that he has already forwarded some proposals to the government to improve the scheme.FAVOURING BIG FARMERS?Ashfaque Hasan Khan, a former economic adviser to the finance ministry, sees the insurance scheme as part of a pattern in which large-scale farmers exploit agricultural programmes that are nominally designed in the name of small-scale farmers.For example, he said, subsidies for fertiliser or big equipment such as tractors are of no use to small-scale farmers, who cannot afford these products.In any case, he said, the government is not financially able to support the new insurance plan and should instead urge the private sector to provide crop insurance.“The government will have to bear a budgetary cost if it goes ahead with the scheme, but this is not feasible under the present economic conditions,” he said.Source - http://www.trust.org/

04.07.2014

India - Delayed rains to affect food grain production, yield in Gujarat

The dry spell in June coupled with no signs of revival of the south-west monsoon in coming week, will not only affect the kharif production in Gujarat, but is also likely to dig a hole in state farmers’ pockets as lack on rain during sowing season will increase the cost of irrigation. Furthermore, the yield per hectare of major crops like cotton, groundnut and paddy is likely to be affected as the water has already become scarce in many parts of the crop growing regions.Compared to 50 per cent sowing in the state as on June 30 last year, this year the sowing has been only 14.73 per cent. Against cultivable area of 8.68 million hectare, sowing has been done only in 1.28 million hectares in Gujarat as on June 30. Whereas, during the same period last year sowing was completed in 4.368 million hectares. As on July 1, the figures released by the state agriculture department showed that in 2014 kharif season sowing was down 70 per cent compared to 2013 season.Though many of the farmers are yet to begin work, those who have initiated sowing are facing crop damage due as germination of seeds is likely to be affected if the rains are delayed for one more week.Vice chancellor of Navsari Agriculture University (NAU) A R Pathak explained that where there was irrigation facility, the crops are not likely to be affected more, but those areas which dependent on rains, the situation could worsen. “In south Gujarat region production of paddy could be affected if the rains get delayed by 7-10 days more. The grain size could decrease and there is even threat of sapling getting damaged,” Pathak said.He expressed concern over the cultivation of vegetables in various regions as that could also take a hit in case of delay in rain. With regard to future of cotton and groundnut already sown in north Gujarat and Saurashtra region, Pathak said, “They too would be affected as due to lack of water the seed would get damaged.”The weather department too had no good news for the farmers. They are not expecting significant rains till July 7. “There is some activity in the Arabian sea with building of an off shore trough along the Gujarat coast. We expect light to moderate rainfall in coming days in few places of the state mainly south Gujarat region,” said director of Indian Meteorological Department (IMD), Ahmedabad, Jayant Sarkar. He did not expect any change in the prevailing condition till next 4-5 days. “We will be assessing the situation next week for further forecast,” he added. As on July 3, Gujarat had received 3.3 per cent of it total rainfall with as many as 100 talukas yet to receive rains this season.According to the state agriculture department, as of June 30 groundnut has been sown in 0.42 million hectares while cotton has been sown in 0.723 million hectares. While farmers are still waiting for rains to arrive to speed up cultivation of paddy for which sowing has taken place in only 5,000 hectares against 0.74 million hectares of total area under paddy cultivation in the state.Janak Patel a cotton farmer in Rampara village of Savarkundla in Amreli district lost his entire crop due to delayed rains. “We had begun sowing in four bigha land following rains in early June. But after that there has been not rain. Also, the level of water in the irrigation well has come down,” Janak Patel said. He also said that other farmers in his own village and those in nearby village have suffered similar losses. He feels that if the rain is further delayed he will have to go for less water intensive crops like castor, sesame or fodder.Another farmer Valjibhai Patel from Sayla in Surendranagar district said that besides scarcity of irrigation water, they are also face shortage of drinking water in their region. “If there is further delay in rain the entire production of state will be affected. The cotton production of the state could be halved if absence of rain for the next 15 days,” Valjibhai said.For the year 2013-14 the project figures of cotton production in Gujarat was 11.6 million bales (170 kg) while the target for 2014-15 has been set at 10.8 million bales.According to the Solvent Extractor’s Association of India 2.60 million groundnut was produced in Gujarat in last year, where as target set by the union Agriculture minister for current fiscal is 4.25 million tonnes.Source - http://www.business-standard.com/

04.07.2014

India - Satellite imagery scheme for farm sector proposed

The Insurance Regulatory and Development Authority Chairman TS Vijayan called on Andhra Pradesh Chief Minister N Chandrababu Naidu and discussed issues relating to insurance in the agriculture sector and agreed to take up a pilot satellite imagery project for farmers.The IRDA Chief promised to take up a pilot scheme using satellite imagery in Andhra Pradesh for farmers in the State.This follows a request by the Chief Minister.During the meeting, the issue of improvement and implementation of the crop insurance scheme was emphasised.According to a statement from the Chief Minister’s Office, Naidu expressed the need to improve crop insurance scheme particularly for small- and medium-farmers.While calling upon early release of crop insurance claims, Naidu requested the need for proper assessment of crop conditions using satellite imagery and information technology tools to ensure accurate crop yields.Source - http://www.thehindubusinessline.com/

04.07.2014

Philippines - DAR indemnifies drought-affected farmers in Quirino

The Department of Agrarian Reform (DAR) recently awarded P238,291.46 worth of indemnity checks to forty three (43) ARBs in the province of Quirino to safeguard their crops from any disasters.Acting Provincial Agrarian Reform Program Officer II (PARPO II) Engr. Arthur E. Faeldon said the insurance, implemented under the Agrarian Reform Beneficiary-Agrarian Insurance Program (ARB-AIP), was given to farmer-beneficiaries who were affected by drought last cropping season.“We are happy that you are secured. The additional expense for the insurance of your farms and yourself won’t be too much of a burden if at the end of the day you will benefit from it,” Faeldon said to the farmers.Faeldon added that although they are insured, they should be very vigilant in protecting their farms because the climate is becoming more unpredictable nowadays.On the other hand, Diffun Mayor Marlo Guillermo said the farmers are lucky to have this government program as they don’t have to worry about the loss brought by the disasters, particularly the drought.“Through this insurance, you can plant all day and sleep well during the night,” Guillermo said.The ARB-AIP subsidized 100% of the ARB’s premium for rice, corn, high value crops and livestock insurance, which has a built-in insurance for accident and death for ARBs and members of their households.The DAR-AIP was launched in 2013 by the DAR and the Philippine Crop Insurance Corporation (PCIC) to provide ARBs crop insurance protection against crop losses caused by natural disasters, pest infestation and plant diseases.Source - http://news.pia.gov.ph/

04.07.2014

India - Weather-based crop insurance scheme comes into effect in Chhattisgarh

Chhattisgarh government had decided to introduce the weather based crop insurance scheme across the state. The department of agriculture had issued to this effect to cover all the 27 districts in the state under the insurance scheme.The state government had shortlisted seven insurance companies - both public and private authorized by the Government of India-to implement the scheme.The officials said that the agriculture department would pay the premium from the budget allocation it had received for the financial year 2014-15. The scheme is mandatory for the indebted farmers in the notified area for the crops while optional for those farmers who have not taken loan.Under the scheme, 50 percent of the premium would be paid by the farmers while the remaining 50 percent would be shared by the Central and state governments in equal share. The state government had appealed to the farmers to take advantage of the scheme and insure the crop.Experts however cautioned the authorities and said it should be ensured that the farmers bearing the loss were given relief. "There had been standard norm and the rain measuring equipment had been fixed to cover the area in 10 km periphery that was not practical," agriculture expert Virendra Pandey said.Based on the observation in 10 km area, the companies had been fixing the insurance cover that had resulted in making the real beneficiaries ineligible."If it rains heavy in one village and drought prevails in neighbouring village, the company will make general observation as good rainfall and avoid paying loss to the affected village," Pandey explained.The agriculture officials however contented experts' view and said the drawbacks in the scheme had been addressed."The insurance companies have been asked to install the rainfall monitoring equipment in the village level of the district it has been assigned to get the exact picture," a senior official in the department said.Moreover, the revenue department besides other departments monitoring rainfall has its own resources to record rainfall, he said, adding that the authorities will compile and compare figures from all quarters before coming to conclusion about short or excess rains.Source - http://www.business-standard.com/

04.07.2014

Damaging Storms Hit Insurers With Claims Worldwide

The storms that pounded vineyards in Southwestern France around Bordeaux and Cognac last month probably cost insurers as much as 900 million euros ($1.2 billion).Winds of 90 miles (145 kilometers) an hour and hail that swept through Western and Central Europe in the first half of June caused more than 2 billion euros in economic losses, the insurance broker said yesterday in a report. France and Germany were hit the hardest.Europe has been slammed by bad weather in June for two years in a row. In 2013, insurers paid more than $4 billion as a result of hailstorms, mostly in the western part of the continent. This year, about 363,000 claims were filed in France amid destruction in wine-producing regions.The storms caused “extensive crop damage”. “Swaths of vineyards were destroyed.”Axa SA (CS) is the largest property-casualty insurer in France, followed by Allianz SE. Paris-based Axa also owns vineyards in the country through its Axa Millesimes, said Discretion Winter, an Axa spokeswoman based in the U.S. Winter said she didn’t know whether any crops owned by Axa were destroyed.In the U.S., tornadoes and windstorms that traveled from the Rocky Mountains to the Tennessee Valley last month will probably cost insurers more than $1 billion.More than 300 tornadoes hit the U.S. last month, compared with 125 a year earlier and 111 in June 2012, according to preliminary data from the National Weather Service’s Storm Prediction Center. May, June and July tend to be the worst months for twisters, it said.Rains in China in June resulted in more than $2.2 billion in economic damage.Source - http://www.businessweek.com/

03.07.2014

Pakistan - Insurance scheme for crops

The introduction of a crop insurance scheme has been discussed in the country for a long time due to its immense benefits to the agriculture sector and the farming community but its implementation has failed to make a steady progress with the result that the country has not been able to utilise its potential. Knowing the background of the subject in detail, Finance Minister Ishaq Dar allocated an amount of Rs 2.5 billion for the development of a proper plan of action to take full advantage of this product (scheme).However, as reported in this newspaper on 25th June, 2014, farmers and experts are not very much convinced and remain sceptical about proper implementation of the scheme. Pointing out flaws in the scheme, Kisan Board Chairman Sarfraz Khan said that "such schemes are designed solely to get political mileage" and are useless as the government had no strategy to reach the subsistence-level farmers. Farmers who get a loan from Zarai Taraqiati Bank are charged two percent extra interest for insurance but their grievances are hardly addressed. They cannot benefit from the scheme until their area is declared as "calamity hit".In the budget speech, the scope of crop insurance premium reimbursement was enhanced from 12.5 acres to 25 acres of land though around 91 percent of farmers in Pakistan have a land holding of up to 25 acres and they should be looked after in a better way by the government. "If the government wants to make the insurance scheme a success story, then it should introduce it on yield basis instead of damage to the crops," Khan suggested further.Pervaiz Amir, a former chief of Prime Minister's Task Force on Climate Change, was of the view that insurance schemes had also been announced in the past but remained unimplementable. It is difficult for small farmers to pay premiums and the scheme has always been abused by government officials as there was no specific mechanism to settle the claims. "There is also an element of religious beliefs in the insurance scheme," he added. A Senior Vice President of ZTBL told Business Recorder that it is true that the farmers do not get full claim for their insured crops but the ZTBL cannot improve the system on its own as the bank serves only as a liaison between the SBP and the insurance companies.Pakistan's agriculture sector contributes about 24 percent to the country's overall GDP and employs 43.7 percent of the labour force but has failed to make the needed progress and transform the lives of ordinary people. Over the last seven years, this sector, for instance, has grown between only 0.2 percent and 3.6 percent per annum and been generally a drag on the growth rate. The productivity in the sector is much lower than other countries due to a host of factors including water shortage, absence of new technologies and innovations like the implementation of a proper crop insurance scheme which could give the agriculturists much-needed confidence to grow various crops by providing them cover against vagaries of weather and unforeseen calamities.In fact, the overall insurance industry in Pakistan is relatively small compared to other developing and regional countries and the share of non-life insurance sector in the industry including three general Takaful operators is hardly significant. Although, the subject of crop insurance has been in the limelight for a long time, it is only now that the SECP is striving to develop comprehensive guidelines for the crop insurance industry to cater to the demand in the market and pilot projects launched by the Pakistan Poverty Alleviation Fund and the SBP are being executed under SECP's supervisory advice to provide effective learning outcomes for developing guidelines in the field.However, while most of the initiatives of the government, including an allocation of Rs 2.5 billion in the budget, to set the ball rolling are welcome, the main features of the scheme still need to be thought through very carefully with a view to taking all the stakeholders on board and making the project a success story. First of all, a specific evaluation criteria needs to be developed to ensure that both small and bigger/progressive farmers could benefit from the scheme.Unfortunately, however, experience in Pakistan suggests that schemes like subsidised credit geared mainly towards benefiting small farmers generally ends up benefiting bigger farmers. Secondly, the argument of the Kisan Board Chairman that farmers cannot benefit from the scheme seems justified. Obviously, the criteria should be the loss suffered by a farmer and not whether or not his area was declared as calamity hit. However, his advice that the government should introduce the scheme on a yield basis instead of damage to crops is likely to be a huge bone of contention as there would always be a difference in the yield estimates between the farmer and the insurer at the time of settlement of a claim.And finally, it is of paramount importance to ensure that the scheme is self-sustaining and managed without a subsidy or an allocation of funds from country's annual budget on a long-term basis. This is probably the only way to keep the scheme in a healthy state, open it up to all categories of farmers, involve private insurers and lessen its dependence on government's estimates of income and expenditure for a period of one year. This may mean somewhat higher premiums; but it would provide a self-sustaining and an all-encompassing basis to expand the coverage of the scheme in a significant manner.Source - http://www.brecorder.com/

03.07.2014

USA - Recent storms damaged southwest Michigan corn

The earliest planted corn fields were looking extremely good across much of southwest Michigan going into the Fourth of July holiday weekend on the evening of June 30, 2014. However, heavy thunderstorm winds did an incredible amount of damage to the rapidly developing crop across widespread areas of Van Buren, Cass, St. Joseph and Kalamazoo counties, as well as undoubtedly many other locations across the region, in the overnight hours of June 30-July 1. The most severely impacted fields were the earliest planted and had the most advanced plant development. Many of these fields were in the 11-13 exposed leaf collar growth stages. The growth stage of the plants is important because of the relative closeness to the critical pollination period.When corn plants are exposed to high winds, several things can happen. The most devastating is when the corn plant snaps off completely, which kills the plant outright. It appears that very little of this type of damage occurred in most fields. If the corn plant is laid down without breaking or severely injuring the stem, it is likely that “root lodging” has occurred. This may have been particularly important during this event because there were two lines of thunderstorms. The initial one dropped heavy rainfall on already wet soils and the second produced very high wind speeds.The degree of damage depends on the extent of which the plants are laid out flat, the growth stage the plant has reached, and the extent of the damage that has occurred to the root system. Corn has an incredible propensity to return to an upward direction and complete its growth cycle. The stems often take on the typical “goose-necked” appearance and continue to grow and produce more or less normally. When pockets of corn are on an extreme list, even in a fairly advanced vegetative growth stage, this is likely to happen. The fields do not look as pretty as before, and some photosynthetic capacity will be lost during the process due to leaf orientation, but the plants can recover quite well, and often with minimum yield losses.When large areas or entire fields are almost completely lodged, and the plants are almost against the ground, the process can become more problematic, especially in the more advanced plants. There is less stem elongation that is yet to occur. On top of this, the plants have much more stalk weight to lift. Also, any stalks that were injured beyond repair become “dead weight” that the prone plants need to lift. The outcome in this situation is much more likely to be one of significant yield losses. It is very likely that pollination will be very poor on fields where the corn is extremely lodged and cannot turn upright before pollen shed.Advanced seed corn fields near Schoolcraft and Vicksburg, Michigan also have suffered similar damage from the corn lying nearly flat in pockets of fields. This carries down into at least west central St. Joseph County in some locations. In general, the lodging is less severe in seed corn, mainly because the plants were smaller.Lodging on seed corn fields creates another problem, which is how low the female plants have to be clipped during the de-tasseling operation. The more variable the plant height, the lower the plants are usually clipped to remove the tassels. Some of these female plants are likely to gooseneck, which will make it difficult to mechanically de-tassel, especially on the side it is leaning towards. The net effect of this storm damage is likely to be deeper clipping and pulling operations, which can lead to less leaves remaining on the female plants to produce the seed, and more hand labor to properly remove the tassels.Soybeans are not likely to suffer much long-term injury from this storm. Increased areas of ponding on already saturated soils are the most likely causes of soybean yield losses. We would anticipate that advanced vine crops, especially watermelon, pumpkins and muskmelon, would have wind-whipping injury from the extreme winds. Later planted potatoes could also see some premature vine “lay-down” due to the winds. The vegetable crops may benefit from fungicide applications to help prevent point of injury disease infections.Source - http://msue.anr.msu.edu/

03.07.2014

USA - 75,000 Acres of Arkansas Farmland Flooded

At least 75,000 acres of row crops in five counties were under water following record rain last weekend, according to estimates compiled by the Arkansas Agriculture Department.According to estimates sent to Gov. Beebe’s office and the U.S. Agriculture Department on Tuesday by state Agriculture Department:- Prairie County had 5,000 acres of soybeans and rice flooded- St. Francis County had 15,000 acres flooded -- mainly soybeans, some cotton, corn and sorghum - Woodruff County had 15,000 acres of soybeans flooded- Monroe County had 15,000 acres of rice, beans, and corn flooded- Cross County had 15,000-20,000 acres of soybeans flooded.For many farmers, it’s wait-and-see to learn the fate of crops buried by water.Soybean struggle“The soybean crop is taking the brunt of the flood,” said Brent Griffin, Prairie County extension staff chair for the University of Arkansas System Division of Agriculture. Griffin was among the county extension agents helping the state Agriculture Department assess the damage.Soybeans can normally withstand up to 24 hours of flood, he said, “but anything over 24 hours will likely not survive.” Although soybean fields in higher elevation areas are likely to survive, the chance is very low for the ones in lower areas. Griffin said the growth stages range from “just planted to knee-high beans.”Griffin added that the summer heat and humidity also could factor in the loss of soybean plants because hot temperatures cause “scalding”, meaning a lack of oxygen in the root zone.Growers are deciding whether to replant, and it’s late in the planting season, Griffin said. “July 1 is the general cut off date for planting.”Research has shown that soybeans planted after June 15 lose 1 bushel per acre of production per day of potential average yield and 2 bushel per acre per day after July 1.The age differences between beans could create problems for growers trying to time future irrigation, application and harvest. Replanted beans also tend to be more prone to diseases, insects and frost.Producers that have crop insurance will likely file claim for planted acres failed due to the flood, he said. “Those without insurance will likely … cover the initial loss knowing that they will likely only produce 50 percent of normal yields under ‘good’ growing conditions.”Extension Soybean Agronomist Jeremy Ross said there is not a lot that can be done right now. It’s hard for fields to drain because the rivers to which they drain are still full. Field-by-field approach is the best way to go about doing this, he said.Corn and grain sorghumJason Kelley, extension wheat and feed grains agronomist for the Division of Agriculture, said that corn and grain sorghum aren’t as affected as badly as soybeans. He said, “At this late in the season, no corn or grain sorghum will be replanted.”Not all bad news for cottonBill Robertson, extension cotton agronomist with the Division of Agriculture, said with good drainage, cotton can survive. “I think it will recover.”It’s critical that water drain from the fields, he said, adding that producers were quick to make sure drainage pipes were clear to let the water out as quickly as possible. While plants need moisture, they also need oxygen, he said. When the soil is saturated with water, they are deficient of oxygen because the soil air spaces are replaced by water.The worst areas were in St. Francis and Lee counties.Not all fields are troubled with the recent rain. Robertson said this is good news for fields in the northeastern part of the state, such as Poinsett County and Mississippi County, since they only received 2 to 4 inches of rain, which was needed.Rice levees washed outThe 4-8 inches of rainfall that hit the southern half of Jackson County washed out rice levees and damaged soybeans significantly, said Randy Chlapecka, County extension staff chair for the Division of Agriculture.“The washing out of rice levees at this stage is obviously a major problem,” he said. “Much of our earlier rice has reached the reproductive stage and it would be very damaging to suffer drought stress at this stage.”Rice farmers will be trying to repair the rice levees to hold or maintain flood for plant growth and to avoid future drought stress. Right now, the ground is too wet to get any equipment in the field.The 7.5 inches of rain that fell at Augusta in Woodruff County and 4.75 inches of rain that fell at Des Arc in Prairie County set records for highest 24-hour rainfall, according to meteorologists with the National Weather Service in Little Rock.Source - http://www.arkansasmatters.com/

03.07.2014

Canada - Flooding Seen Increasing Claims for Crop Insurance

Saskatchewan, Canada’s biggest producer of wheat and canola, expects insurance payouts on crops to increase after floods wiped out acreage.“It’s a very large area that’s impacted, so we expect to get a number of claims,” said Shawn Jaques, the chief executive officer of Saskatchewan Crop Insurance Corp., a government-owned company based in Melville, Saskatchewan. “There will be a large number of producers that had their crops seeded, and it’ll be flooded out.”It’s too early to estimate the extent of the damage as producers are just starting to call in with flooding reports, Jaques said. Parts of Saskatchewan and Manitoba are experiencing severe flooding after as much as 200 millimeters (8 inches) of rain fell last weekend. Fifty-four municipalities in Saskatchewan have declared a state of emergency, Colin King, the province’s deputy commissioner of emergency management and fire safety.Wheat sowing in Saskatchewan may decline as much as 15 percent after excessively wet weather, Whitefish Bay, Wisconsin-based Martell Crop Projections said in report today. Four million acres in the Canadian prairies may be too wet to plant, according to LeftField Commodity Research.Manitoba FieldsThe extent of damage in Manitoba is still being assessed and will depend on whether crops were completely washed out or fields can recover as water recedes, said David Koroscil, the manager of insurance projects for Manitoba Agricultural Services Corp., a government-owned company that provides risk-management and financial services to farmers. Growers in the province may file the largest number of claims for acres too wet to plant since 2011, he said.Symptoms of excess moisture stress, including yellowing and slowed crop development, are evident in Manitoba fields, and plants have been wiped out in some areas, the province said in a report on June 30. Further damage will probably occur because of flooding and saturated soils, according to the report.About half of the 600 acres Glen Franklin rents out to wheat and canola producers in southwestern Manitoba will not produce any crop this year because the seeded area is underwater and the rest was too wet to sow, he said.Source - http://www.bloomberg.com/

03.07.2014

Polish Re playing an active role in crop insurance

From 23rd until 25th of June 2014 Polish Reinsurance Company organized in Torun VI International Seminar on agricultural insurance.This time the Agro Seminar was dominated by three thematic blocks, all dedicated to crop insurance:- methods of selling crop insurance and cooperation between insurance companies and banks in this respect (Dr. Erich Kasten Agriculture Ins Consultants from Switzerland, Attorney Piotr Czublun from Law firm Czublun Trębicki)- monitoring of adverse climatic events, especially droughts and their impact on the volume of crop production (Prof. Andrzej Doroszewski of IUNG, Andries Rosema, Director of EARS from the Netherlands)- methods of claims handling and risk assessment in the fields and the possibilities of using technology in this field (Tomasz Kaminski, Independent expert from the Kujawsko-Pomorskie province, Janusz Pavel Vereinigte Hagel from Germany, Yan Shynkarenko from Ukraine).Furthermore, Konrad Rojewski (Polish Re) discussed the Polish agricultural insurance system and referred to the recent legislation of the European Commission determining the possibility of subsidizing agricultural insurance. Then he presented a method how reinsurers analyze the crop portfolios of their ceding companies.Second day of the seminar was dedicated to the practical classes. Participants took part in the demonstrations on field, regarding claims handling and practical risk assessment in the cultivation of rapeseed, wheat and corn in the fields belonging to the PRH Wieszczyce. The seminar was attended by about 40 people from 10 European countries (including Poland) and the Republic of South Africa. Among the participants were mostly practitioners, ie the underwriters involved in crop insurance and claims handling in their everyday work.Seminar Polish Re, both in the conference room and in the fields, as well as during breaks contributed to numerous discussions, exchanges of information and views. To such extent that the lecturers were almost inundated with questions.Polish Re regularly organizes technical seminars, supporting the development of local insurance markets. These types of seminars are highly appreciated by the participants and contribute to building a positive image of the Polish insurance market abroad.Source - http://www.polishre.com/

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