Agroinsurance

India - Hailstorm damages fruit crops in parts of Kashmir

This weekend, a hailstorm and thundershowers lashed parts of Kashmir, after inclement weather for the last few days already badly damaged the Valley’s horticulture and agricultural produce. Director Horticulture, Kashmir, Aijaz Ahmad Bhat said that the extent of loss caused to horticulture produce due to hailstorm was “around 40 per cent in some of the badly affected parts of Handwara and Kulgam”. However, Bhat said the final loss assessment was yet to be made. “We are assessing the losses on daily basis. As and when we get reports of hailstorm, the departmental teams are rushed to the affected areas. We have been issuing advisories and guiding orchardists about how to manage and minimize further damage,” Bhat said. Source - https://www.freshplaza.com

India - Mango farmers fear cyclone Tauktae may cause serious losses

There are many who look forward to the scorching months just to take a bite of the quintessential summer fruit, Mango. But cyclone Tauktae apart from threatening widespread destruction may also hit the mango yield, its quantity as well as quality. The harvesting season of mangoes in the state has just begun. But the low pressure area created by cylone Tauktae and its likely landfall in Saurashtra that can cause heavy winds and rainfall has the mango growers of the region worried. Farmers in south Gujarat are yet to pluck 75% of mango crop and they are already worried about the changing climate. Farmers say that if it just rains, there will not be much harm, but if it rains heavily with strong winds, there will be huge damage to the crop. Agricultural scientists have already forewarned the farmers. "We have issued advisory to the farmers to pluck as many mangoes as they can and sell them. If the cyclone results in strong winds then both the ripe as well as unripe mangoes will get hit," said Dr CK Timbadiya, senior scientist and head of Krushi Vigyan Kendra of Navsari Agricultural University. "The major harvest begins after Akshaya Tritiya which was celebrated on Friday. But since the markets were also closed because of Eid and the weekend, farmers were going to start plucking over the weekend and next week," said Vinod Desai, a farmer in Valsad who owns 5,000 mango trees. After Akshaya Tritiya, retail markets are flooded with mangoes which bring down the prices of fruit. However, farmers are worried that if the crop is damaged, they will not get a good price and the mango lovers will end up paying more. "Nobody prefers to buy mangoes that fall of the tree due to strong winds because they get damaged. So, we will not get good price. Also, since there will not be enough stock in the retail market, the vendors will increase the prices for end customer," said Suresh Patel, a farmer from Navsari. Currently, Alphonso is sold in the price range of Rs 1,400 to Rs 1,800 per 20 kg, Kesar for Rs 1,500 to Rs 1,600 while Rajapuri for Rs 900 per 20 kg in the retail market of Surat. Usually, as the supply increases after May 20 the prices drop by Rs 200-Rs 300 per 20 kg depending on the quality of the fruit. The situation is no different in Saurashtra which is popular for its Kesar variety mangoes. There too farmers have not been able to harvest the crop due to changes in the weather over the last 20 days. Farmers already fear 40% loss in production due to unseasonal rain. The cloudy atmosphere and rains have caused damage to the crop, and it also didn't allow fruits to mature. D K Varu head of department of fruit science in Junagadh Agriculture University (JAU) said that climate plays an important role in ripening of mangoes. "An ideal climate would a temperature of around 40 degrees Celsius with little or no humidity. But in last two weeks the humidity level remained high so the mangos did not ripen and farmers could not pluck them," Varu said. According to farmers 70 to 80% crop is yet to be harvested and if the cyclone hits the state, it will cause huge damage. The Kesar variety of mango is cultivated in 25,000 hectares of Gir Somnath, Junagadh, Amreli and Bhavnagar districts and the average annual crop production is around 2.50 lakh tons. Source - https://timesofindia.indiatimes.com

Ecuador - It’s a matter of time before banana crop gets hit by Fusarium

Fusarium and bananas have a several decade-long history together. The Fusarium oxysporum f. sp. Cubense Tropical Race 4 fungus (TR4) has already affected some twenty countries and now poses a threat to the entire banana and plantain industry of Ecuador as well. A cure has not yet been found. “The banana is Ecuador’s second largest export product after raw petroleum and if banana exports would be hit, the impact would be huge,” says Hugo Castro of GinaFruit. In Latin America, the TR4 variant of the fusarium disease was first detected in Colombia in 2019 and just a couple of weeks ago in Peru. Ecuador has plantations less than 300 kilometers from the northern Peru region where the fungus was confirmed on April 12. Machala, the capital of El Oro Province and the commercial heart of Ecuador's main banana producing region is just 45 minutes away from the Peruvian border. “It’s now just a matter of only months or a year until Ecuador gets affected by TR4,” said Castro. “Peru is a big trading partner of Ecuador and truckloads of products like onions, rice and potatoes are coming in daily, carrying a lot of soil/dirt with them. These crops are insensitive to TR4 but still can carry the disease with them and spread it to other crops.” Extreme measures, no united front The government has taken extreme measures and set up checkpoints at all border crossing points. Every truckload is being checked and the measures include sterilizing containers and trucks as well as putting stricter phytosanitary rules in place for the import of banana plant material. In addition, online conferences are hosted to educate about Fusarium. “What we do at GinaFruit is a lot of disinfection and putting security measures in place. Also, with our Rainforest and or Global Gap regulations we already follow a lot of protocols,” said Castro. “An example is that we have specific tools and materials for each farm and those don’t leave the farm. We also have truck disinfection systems, as well as biosecurity arcs for people.” However, GinaFruit and most of the banana producers in Ecuador, are surrounded by smaller farms that generally have a lack of information and don’t always know what enters their farm. “The lack of information could be caused by farmers not reading the news or simply not having the economic capacity to put the right protocols in place. Unfortunately, the Ecuador banana industry does not have a united front with producers, exporters and government sitting together and making a plan.” Coping and living with the threat of Fusarium Some countries like Australia and the Philippines have been dealing with the Fusarium TR4 strain already for twenty to thirty years. “They know how to handle it and learned to live with it,” said Castro. “One of the solutions is to share more knowledge and best practices with each other and send our people over there for training and education. Another solution would be to develop a new banana variety that is resistant to Fusarium. However, this can take many years.” he added. Markets are all over the place “With the uncertainty around fusarium in combination with COVID, trade is really sleepy and not the fuzz and buzz we had before.” The demand is there but people are not taking any risks and taking it easy. “We are really living day by day,” shared Castro. GinaFruit’s regular long-term customers, which are mostly high-demanding retailers in Western Europe and Asia, are still going strong. However, with a more moderate pace in program and weekly volumes. Markets outside these two continents are all over the place. Our sales teams are on the phone more than ever, dealing with different needs, specifications, and countries.” Source - https://www.freshplaza.com

USA - Late freeze in Michigan takes first flushes of asparagus out

A series of freezing nights in the West Central region of Michigan caused the first flushes of asparagus production to be taken away. This has resulted in supplies being very light and primarily coming from Southern Michigan. “We hope supplies will gradually pick up this week,” says Tyler Hodges of Superior Sales. “Although we lost some good picks, we still anticipate having a full season,” he explained. The Michigan asparagus season starts in May, with production picking up mid-month and extending through July. The extended weather forecast looks good for the crop. “We can’t complain about cool and mild temperatures over a longer period of time as it generally promotes good quality asparagus with less stress to the plants and a steady manageable supply.” Pricing has rebounded This week, Superior will be ramping up with steady production volumes as well as markets at $56.75-60.75 FOB Michigan on a 28-lb carton. The number is down from $64.75 FOB last week due to lower supplies around the freezing temps. “The demand is there, and pricing has rebounded from the lows we saw when Caborca, Mexico, was in production,” Hodges added. "The numbers look sustainable for the growers thus far and quite frankly they need to be to avoid losing domestic acreage and thus relying solely on imports.” Fortunately, the Michigan asparagus program receives a lot of support from people seeing the value of bringing in a fresher product with better eating qualities. “We have a saying here in Michigan: ‘All Green, All Edible, All the time’ as well believe in harvesting differently. The harvesting technique of hand snapping each spear truly provides the consumer with a more usable product.” With a short six to seven-week season, the focus is on offering the product while we are in season rather than having a 52-week program. About 75 percent of Superior’s asparagus volume is sold at food retail level. The remaining 25 percent goes to foodservice and with the pandemic slowly calming down, demand from foodservice is gradually picking up. The majority of customers are located east of the Mississippi, all the way to the upper Northeast region of the US. First spring crop in Michigan Superior has represented the Michigan asparagus industry for over 30 years and it’s a program the company cares about very much, despite the season only lasting seven weeks out of the year. “It’s the first spring crop that kick starts our Michigan programs, which we’re always excited about. In late June, we will start up some of our earlier summer vegetable programs including cabbage, cucumbers, zucchini, yellow squash, green beans and leaf lettuce.” Hodges mentioned. Throughout the year, domestically grown asparagus comes from only a few regions with Michigan being the largest source. Other asparagus growing regions in the US include Washington, California, and New Jersey with the majority of imports coming from Peru, Mexico’s and Canada’s province Ontario. Source - https://www.freshplaza.com

China - Losses to new ASF wave may be 30 percent

China’s hog sector is in its third wave of African swine fever primarily due to a mutated strain of the virus, says an international swine management consultant. Todd Thurman, who owns SwineTex Consulting Services and typically spends about half his year in China, said the mutated virus is less deadly but harder to identify. “Most of that problem has been linked to the usage of rogue, illegal vaccines that were widely used in some areas and ended up resulting in a mutated form of the virus,” he told a webinar held by meat and livestock analysts J.S. Ferraro. Loss estimates over the past winter and earlier this spring ranged from about 20 percent of the herd to more than 50 percent. He believes losses to be 30 percent. Most of the outbreak has been in north and central China where the first wave began in summer 2018 and continued through to spring 2019. The second wave followed in late spring through to the late fall in 2019 in southern China, including in the country’s main pork producing province. Thurman said issues of pig density and poor biosecurity, along with ineffective control, contribute to sustained waves. Some producers panicked and took their pigs to market instead of properly disposing of them. Some farms even followed a strategy they call “pulling the tooth” in which they identified so-called sick animals and removed them but left the so-called healthy animals in their herds. “There were a few farms that were able to at least apparently successfully execute a strategy like that but by and large it was a disaster and really ended up being a major contributor to the first two waves,” Thurman said. During this third wave some of the issues persist. Pig density hasn’t changed much and while biosecurity has improved, there are still gaps in terms of international standards, he said. Some analysts have reported that big producers were heavily affected while others say they weren’t. He said he believes big producers were most affected because they were most likely to use the rogue vaccines. As the wave progresses, some things are becoming clearer. Thurman said producers kept telling them they were having a really bad year battling porcine reproductive and respiratory syndrome, or PRRS. In hindsight, it appears producers were actually dealing with the mutated ASF virus. Chinese hog prices are down about 30 percent since January but producers are still profitable and even in record price territory. However, he doesn’t believe the full recovery this year, predicted by the Chinese government, will happen or that the swine herd had already recovered to between 80 and 90 percent of the pre-ASF number. “One very suspicious thing is a lot of times there was no lag between reports on expansion of the sow herd and expansion of the gross pig population,” Thurman said. Price is the other indicator. Prices are about three times higher than pre-ASF levels, leading him to ask how that jibes with a higher supply. In the short term, Thurman expects continued poor performance of China’s herd. “We’re using poor quality breeding stock so most of this recovery was completed not with proper breeding stock meeting normal standards,” he said. “At this point 50 percent or more of breeding stock is not proper. We’re seeing 20-percent-plus worse reproductive performance in those animals and that’s going to be an issue to take some time to work through.” Lower prices are likely through this summer due to normal weakening demand after Chinese New Year and the glut of pork hitting the market from some panic selling. Finally, he said China is importing record amounts of all proteins, which also indicates the world’s largest pork consumer needs the meat. The longer term outcome depends heavily on what happens this summer, he said. The Chinese government has defined recovery as 95 percent of the previous herd, but that still means the country would be importing five percent of its needs when it normally imports about two percent. “While three percent difference in imports doesn’t sound like a lot, it’s very significant when you’re talking about a market the size of China,” he said. Thurman said he believes China won’t be back to a new normal until 2024. Source - https://www.producer.com

Colombia - Cattle farmer declares truce with jaguar

On the plains of eastern Colombia, an age-old conflict between man and beast plays out near-daily. Jaguars attack cattle. Farmers retaliate with shotguns. But rancher Jorge Barragan has declared a unilateral truce with the carnivorous cats. He has taken a liking to the largest feline of the Americas, and says he does not mind sacrificing a few head of cattle to do his part to conserve the deadly hunters that have captured his imagination. About ten years ago, Barragan decided to sacrifice part of his family farm, La Aurora, to the savanna that provides shelter and food for jaguars he says are "worth more alive than dead." The family has long banned hunting of wild animals -- jaguar food -- on the property. Now 61, Barragan seeks the cats out rather than dreading a sighting. He spends a large part of his day combing through footage on hidden cameras dotted across the farm, which has also become a nature reserve, in Colombia's eastern Casanare department. In the pictures, he encounters old feline friends and discovers new ones. But it is not always a happy coexistence. - Doing the opposite - The cats, which can weigh 100 kilograms (220 pounds) and measure some two meters (six feet) in length, frequently cross Barragan's property. And sometimes the cattle fall victim -- as many as 100 per year at a loss of some $300 per head. Barragan says he makes up the losses, at least partly, through visits by scientists and tourists hoping to catch a glimpse of one of the majestic spotted cats. In 2018, the farm drew some 160 visitors per month, at $30 per person per night, but this revenue stream has all but run dry during the coronavirus pandemic. The jaguar is listed as "near threatened" by the International Union for Conservation of Nature. Population numbers are decreasing, with farming, residential and commercial development among the main threats. "Jaguar-livestock conflict is a serious threat to jaguar survival," states the IUCN. "There are few areas within Jaguar range that can be considered safe" for the cats. For Barragan, "a culture was created of killing the feline to stop the problem" of livestock losses. "But we are doing the opposite," he told AFP, proudly. The rancher said he inherited a deep respect for Nature from his father. But his love affair with the jaguar began when he saw a photo of one of the majestic predators in 2009, taken on a hidden camera a student had left on the farm. "We knew that we had (jaguars) in the savanna, but I was very moved when I saw that first photo." - Range has halved - Twelve years later, Barragan has given names to many of the animals that visit the farm, each sporting their own unique coat pattern. "He has managed to identify 54 individual jaguars," said Samantha Rincon, of the Panthera foundation dedicated to feline conservation. According to Panthera, about 55 other Colombian farms are now following in La Aurora's footsteps, seeking to better coexist with the jaguars they used to regard as the enemy. Measures include introducing more spirited steers to defend the rest of the herd in the event of an attack, halting deforestation and putting a stop to hunting jaguar prey such as capybaras. "By taking away the jaguar's habitat, by eliminating its prey, obviously it will go in search of domestic animals" for food, Rincon told AFP. Outside the confines of La Aurora, the picture is very different, with vast plantations of rice and oil palm competing with jaguars for territory. Panthera says there are some 15,000 of the cats left in Colombia, and about 170,000 in the Americas as a whole. The species once stretched from the southern United States to northern Argentina, but its range has since been halved, and it is extinct in several countries. Climate change is taking its toll, too. In 2016, a strong drought killed off large numbers of capybara, giant rodents that form a large part of the jaguar diet. Barragan said he would love to see more farmers commit to protecting the felines. "Finding a cat on a cattle farm always produces a certain fear... but our experience shows that we can coexist with the jaguar," he said. Source - https://www.france24.com

India - Rain leaves wheat farmers worried

Rain, hails and thunderstorms in the past one month have left farmers worried, especially in areas where the harvesting of wheat and barley is on. However, the rain has paved the way for early sowing of maize and are also considered conducive for potato, ginger, garlic and onion. Reports of capsicum crop damage in Solan and Una have poured in, while a blight attack on tomato crop was reported in the Balh area of Mandi district, following which the teams of the Krishi Vikas Kendra visited the affected areas. However, growers can now sow maize early in several districts, including Solan, Bilaspur, Hamirpur and Una, for kharif season. The target area to be covered under maize cultivation is 2,07,000 hectares. The weather is best for sowing of ginger and turmeric and good for potato, garlic and onion, say sources in agriculture department. Earlier, scanty rain in Himachal caused losses worth Rs 133.5 crore to foodgrain and commercial crops during Rabi season as Himachal received 69 per cent deficit rains during winter season (January 1 to February 28, 2021) and deficit of 62 per cent in March 2021. The deficit, which had increased to 60 per cent in the first week of April, narrowed down due to heavy rains, thunderstorm, hailstorm and snowfall during April, which further worsened the farmers’ plight. Himachal received 35.5 mm rains against normal 29.8 mm of rains from May 1 to 12, an increase of 19 per cent, Director, Meteorological Department, Manmohan Singh said, adding that the rains would be above normal in the coming week. Unseasonal snowfall and hailstorm caused heavy damage to standing Rabi crops ready for harvesting and even the crops which had been harvested. The wheat crop withered during January and February. Moderate to heavy rains lashed several parts of the state and Dharamsala with 65 mm of rains was wettest in the region, followed by Rohru 42 mm, Mandi 36 mm, Narkanda 34 mm, Palampur 33 mm, Sundernagar 31 mm, Solan 29 mm Kumarsen 27 mm, Kasauli 26 mm, Baldwara 25 mm, Rampur 23 mm, Bhuntar and Gaggal 21 mm each, Keylong 20 mm, Gohar and Kothi 18 mm each, Bajura and Rajgarh 17 mm each, Shimla, Manali and Seobagh 16 mm each, Wangtoo and Pandoh 15 mm each, Kotkhai and Karsog 14 mm each, Jogindernagar 13 mm each, Manikaran and Baijnath 12 mm, Kufri 11 mm and Tissa, Dalhousie and Bajura Bijahi 10 mm each. The local Met office issued a yellow alert of thunderstorm and lightning at isolated places in Kangra, Mandi, Shimla and Solan districts on May 14 and predicted a wet spell till May 16. Minimum temperatures decreased by 1 to 2 degrees and Keylong was coldest at night with a low of 3.5 degrees C. Maximum temperatures dropped by 7 to 8 degrees and Una was hottest in day with a high of 28.2 degrees C. Source - https://www.tribuneindia.com

USA - Officials consider restrictions in bosque due to extreme fire danger

After a string of fires in Albuquerque’s bosque over the last month and a half, officials are now considering restrictions throughout the summer. This comes amid a bleak outlook for the Rio Grande flow. The Rio Grande may look promising now, with water levels higher than they’ve been in months, but with an early run off it won’t look like that for long. Mike Hammon the CEO of the Middle Rio Grande Conservancy District says the river will dry up significantly this year unless we get an early monsoon. Hammon says this could be one of the driest summers we’ve seen since the early ’80s. Firefighters have already put out five fires along the bosque, between Albuquerque and Los Lunas in the past month and a half. Just Thursday, Corrales Fire Department responded to a campfire burning on their side of the bosque. “We got reports from a citizen that was walking in the bosque, they noticed evidence of a campfire, and our brush crew went out, they found a hot campfire in the bosque,” said Corrales Fire Chief Anthony Martinez. That’s why the MRGCD is working with public safety officials to determine if they should implement restrictions or even a full closure of the bosque. “If people are well behaved and obeying the fire restrictions I think we’ll be okay,” said Hammon. On top of the high fire danger, Hammon says if the drought continues there will be more consequences. “Farmers will be suffering from significant crop loss this year, which we haven’t seen in a long time,” said Hammon. Hammon says the last time they closed the bosque entirely was back in 2016. He says they expect the extreme fire dangers to continue at leat through July 4. The MRGCD says the last time the river dried up in Albuquerque was the ’80s. Source - https://www.krqe.com

India - 52.38 lakh farmers get Rs 3,928 cr under Rythu Bharosa scheme

Chief Minister YS Jagan Mohan Reddy on Thursday said his government released Rs 3,928.88 crore as the first installment of YSR Rythu Bharosa - PM Kisan Scheme, benefiting 52.38 lakh farmers, despite financial constraints in the times of Covid-19 to ensure that they do not face any inconvenience while taking up agricultural operations for the ensuing Kharif season. Addressing farmers virtually from his camp office in Tadepalli, he said they credited the amount directly into the bank accounts of beneficiaries for the third year under the scheme so that they can use it as an investment for Kharif. “In our State, 50 per cent of farmers have land holdings less than half a hectare, while 70 per cent hold less than one hectare. A sum of Rs 13,500 is being provided to small farmers in three installments under Rythu Bharosa, which will take care of 80 per cent of their initial investment on crops,” he said. Rs 89K cr spent on welfare schemes, says CM Reiterating his government’s commitment to the welfare of small and marginal farmers, poor people and the downtrodden, Jagan said a total of Rs 89,000 crore was spent on various welfare programmes in the last 23 months. “Since the formation of our government in June 2019, a total sum of Rs 68,000.41 crore was spent for the welfare of farmers alone, including Rs 17,029.88 crore under the YSR Rythu Bharosa Scheme benefiting 52.38 lakh farmers,” he said. Listing out various schemes being implemented for the economic uplift of farmers, he said YSR Rythu Bharosa, YSR Zero Interest Crop Loans, YSR Free Crop Insurance, input subsidy to farmers for crop loss due to natural calamities, free power subsidy, procurement of paddy and other farm produce at support price have proved very beneficial to them. On the occasion, he pointed out that even the dues left uncleared by the previous TDP regime were also paid by his government, which included paddy procurement dues of Rs 960 crore and seed dues of Rs 384 crore. The Chief Minister said Rs 1,700 crore was spent on setting up special feeders to ensure supply of quality free power to farmers during daytime. A sum of Rs 1,264.24 crore was spent on micro irrigation for horticulturists and Rs 1,560 crore for power subsidy to aqua farmers. “Tenant farmers belonging to SC, ST, BC and minority communities and farmers cultivating endowments lands and those in possession of RoFR pattas are also being provided financial assistance under the YSR Rythu Bharosa - PM Kisan Scheme. We are providing Rs 13,500 per farmer, more than Rs 12,500 promised in our election manifesto, that too not for four years, but for five years,” he said. Unlike those who make a lot of promises, but dump their 600-page election manifesto into the dustbin once elections are over, Jagan said his government treats its two-page election manifesto as Bhagavad Gita, Bible and Quran and it has implemented more than 90 per cent of the poll promises in the last 23 months. “We have decided to pay the crop insurance amount of Rs 2,000 crore to 38 lakh farmers on May 25 to ensure that they face no problem while taking up Kharif operations,” he said. Minister for Agriculture and Marketing Kurasala Kannababu, Special Chief Secretary (Agriculture) Poonam Malakondaiah and others were present. Source - https://www.newindianexpress.com

Africa - Crop insurance and weather forecasting are closely linked

Smallholder farmers in Africa are subject to many risks, some of them made worse by climate change. Well-targeted weather forecasts and crop insurance can help to limit losses and improve food security. It makes sense to link both services. Droughts, storms and floods are threats to farmers everywhere. But the damage caused by extreme weather events can be reduced if farmers are forewarned by accurate weather forecasts. That allows them to adjust their practices accordingly. Farmers in developed countries benefit from sophisticated weather forecasting services. These services boost their resilience because they help them to make better decisions. Farmers in poor countries are not so fortunate: Europe’s per capita annual expenditures on weather information services are about $ 16. In Africa, the figure is a mere two dollars. In developing countries, weather forecasts thus tend to be less accurate, less timely and less useful. At the same time, crop insurances can contribute to managing financial risks. A very important option is called “weather-based index insurance”. It means that pay-outs depend on pre-defined weather conditions. This approach is especially important in developing countries because it requires much less administrative efforts than other kinds of insurance that are tied to actual damages, which, of course, have to be documented and assessed. Various kinds of insurance against crop-damaging natural disasters are common in developed countries. For example, in the US more than 80 % of the major grain growing areas are insured. Smallholder farms in developing countries, by contrast, are typically uninsured. Distinct strategies Climate information services and insurance are two distinct strategies. Both help to manage the increasing risks that farmers face due to more frequent extreme-weather events. Climate-information services do not only generate relevant data, they also spread them in meaningful ways that support farm management. Insurance can help protect individuals, small businesses or entire countries from damage. For these reasons, the Global Commission on Adaptation – a 2018 initiative by 23 countries including Germany – calls on governments and the private sector to expand climate-information services and to explore climate-risk insurance for smallholders. In developing countries, weather-based index insurances are a particularly useful option. The insurer pays when rainfall stays below a certain pre-defined minimum level in a specified time period for example. That is equally the case when rainfall exceeds a pre-defined maximum level. Similar indices can be defined for storms, heat waves et cetera. Insurance payments are triggered as soon as local weather stations or satellite surveillance prove that such a pre-defined limit has been breached. It matters very much that farmers do not have to prove actual crop losses in order to receive the payment. It means that administrative costs are lower since no claims-investigation process is needed to assess crop damage. Accordingly, pay-outs to farmers tend to be faster. Lower administrative costs, moreover, imply that farmers pay lower premiums.On the other hand, index-based crop insurances have some downsides. One is that the insurance pay-outs will differ from actual losses. That happens, for example, when rainfall on the insured plot differs from the regional estimates. Moreover, this kind of insurance does not protect farmers from losses caused by other reasons. Multiple risks “Farmers usually deal with multiple risks,” explains Claudia Ringler of the International Food Policy Research Institute (IFPRI). Relevant risks include pests, spikes in input prices, health problems or the death of a relative. Yet insurance policies usually deal with a narrowly defined range of weather events. Ringler insists that more must be done to link index insurances with other risk-management practices. As a first step, it would make sense to combine the promotion of weather-index crop insurance to the improvement of climate information services. The point is that these services can be mutually reinforcing. A better understanding of weather risks will make more farmers buy crop insurance, but also improve their decision making. As a result, their probable losses will be reduced, so insurance premiums could become less costly as well. More affordable premiums, of course, are an incentive to buy insurance. Zambia’s initiative Zambia’s government – along with entrepreneurs and donors – is working towards establishing a closer link between climate-risk insurance and climate-information services. About 1.5 million Zambian farmers are smallholders who depend on rain-fed agriculture. Climate change is gradually reducing their yields and increasing their post-harvest losses. Zambia’s Meteorology Department has been working toward delivering more reliable climate and weather information. However, the national climate policy does not prioritise meteorology, and the network of weather stations is not dense enough to provide sufficient coverage. “At the moment, we have about 41 manually operated weather stations and 107 automated ones across the country,” says Micah Namukoko of Zambia’s weather service. More are needed, the senior meteorologist points out: “We should have one manual station in each of our 117 districts, and an automated station in each of our over 1,800 agricultural areas.” In Zambia, index-based weather insurance for smallholder farmers is still relatively new. The system faces many shortfalls in technical knowhow and insurance monitoring systems. There are also not enough programmes to educate farmers about crop insurance. More farmers would buy this insurance if they were better informed about what insurance policies are available, and if those policies better matched the farmers’ needs. Improving the link between climate services and crop insurance is a focus of “Climate Risk Insurance and Information in Zambia” (CRIIZ), an initiative funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Germany’s bilateral development agency GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit). In collaboration with the Zambian Ministry of Agriculture and other public and private-sector groups, the project aims to improve the access of 100,000 Zambian farmers to information about climate-related risks and bring climate-related insurance to 30,000 farmers. The project emphasises involvement of the private sector. For example, CRIIZ supported several agribusinesses to provide climate-risk insurance to several thousand farmers in the past farming season. By increasing the number of such private-sector solutions, project managers hope to create a sustainable ecosystem for weather-based crop insurance. One Zambian company working to reduce its exposure to climate risks is Community Markets for Conservation (COMACO), a social enterprise that supports wildlife conservation and trains small-scale farmers in sustainable agriculture. With support from the BMZ-funded “Green Innovation Centres for the Agriculture and Food Sector” project, COMACO has supported over 130,000 farmers since 2015 and earned a profit of $ 890,000 in 2020 (see box). COMACO buys raw crops such as groundnuts and soybeans, processes them and sells higher-value food products across Zambia. But in recent years, weather extremes caused major yield losses, especially in groundnuts. Accordingly, the company’s interest in improved weather forecasts has grown. Feedback from farmers Designing a well-targeted weather service and creating an effective climate-insurance product both require a good understanding of farmers’ needs. However, Zambia does not have strong mechanisms for collecting feedback from farmers. To close the gaps, CRIIZ is surveying groundnut and dairy farmers in Zambia’s Eastern and Southern Provinces. The goal was to find out what kind of information they need to better adjust their practices. The survey relies on an evaluation system called Participatory Integrated Climate Services for Agriculture (PICSA). It has delivered good results in 20 countries according to Peter Dorward, who teaches at the University of Reading and contributed to developing the system. In light of the unfolding global climate crisis, it makes sense to link better weather-information services with more targeted weather-based crop insurance. That is obviously true far beyond Zambia. Source - https://www.dandc.eu

Mexico - Experiencing one of the most widespread and intense droughts in decades[:ru]Mexico experiencing one of the most widespread and intense droughts in decades

NASA published a statement in which it explains the drought situation in Mexico and ensures that the country is experiencing one of the most widespread and intense in decades. According to the space agency, 85% of the territory is facing these conditions, which has affected the drinking water resources for drinking, cultivating and irrigating. "Dams throughout Mexico are at exceptionally low levels." Mexican dams at their lowest levels According to what was exposed by the space agency, 60 large dams located in the north and center of the Aztec country are below 25% of their capacity. This has caused some government administrators to regulate the flow of the liquid from the reservoirs so that some inhabitants have been left without running water. Source - https://www.freshplaza.com

Hungary - Overall losses are difficult to assess at this time

The unusually cold April has left its marks in Central Europe. In Hungary, for example, which is one of Europe's most important stone fruit growing countries. Despite the sluggish start to the season, there is no talk of a poor harvest year for the time being, said Sandor Makai (r), Managing Director of Makai Frucht and major supplier to the Vienna wholesale market. To supplement domestic production, at this time of year Austria will import asparagus and strawberries from neighboring Hungary. "Both products are still only available in modest quantities due to the weather, and larger batches are not expected to arrive until week 20," Makai said. Smaller cherry yields of good quality Furthermore, the harvest started late due to the weather: the first strawberries from heated tunnels only arrived on April 10, with the first asparagus only coming in a few days earlier. "We don't expect the first outdoor strawberries until the end of May. Normally, the season would then end in mid/late June, but this year, a season extension is not out of the question." The most important sales pillar of the Hungarian agricultural industry, however, is still formed by stone fruit, particularly cherries, apricots and plums. Here, too, a delay of about 10 days should be expected, according to Makai. "In view of the cold April weather, we expect smaller yields of sweet cherries, but the individual fruits are developing excellently. Accordingly, we expect good fruit quality for the time being. The picture is similar for apricots, where the yield will be 70% below the average level," Makai explains. Extension of the plum season Makai does not want to make any statements on the exact extent of frost damage to stone fruits at this time. "There are hardly any damage reports in the eastern growing regions, but in the south we are observing greater damage. Here, too, however, the property damage varies from place to place," Makai says. Apart from cherries and apricots, plums are the third mainstay of Hungarian stone fruit exports. In this category, too, it is hard to assess the overall losses at present. Makai says, "From a longer-term perspective, we are now testing some new late varieties in cultivation so that we can possibly extend the season out to the end. Last year, we were already able to extend the marketing window a bit longer - around the end of October/mid-November." Difficult marketing situation The fruit expert runs his own stone fruit orchard in southeastern Hungary and markets his own produce and that of many growers in different regions directly at the Vienna wholesale market. "The Corona constraints and especially the closure of the hospitality industry are causing us problems both on the domestic market and in the export business. Nevertheless, due to the smaller volumes at this time of year, demand and supply are roughly in balance. However, when the larger volumes hit the market soon, things could get exciting." Source - https://www.freshplaza.com

USA - USDA approves drought counties for emergency loans

In a two-day burst, the USDA designated 372 counties, roughly one of every seven counties in the country, from Texas and Kansas to California and Hawaii, as natural disaster areas due to persistent drought. At the same time, Gov. Gavin Newsom expanded California’s drought emergency to 41 counties, including parts of the agricultural Central Valley. More than 46% of the country, mostly in the West, is in drought – an unusually large portion, according to USDA meteorologist Brad Rippey. “There have been only four times in the history of the Drought Monitor that we have seen more than 40% U.S. drought coverage as we come into early May,” Rippey said. The natural disaster designations make farmers and ranchers eligible for USDA emergency loans, for needs such as replacement of equipment and livestock or financial reorganization. Almost every county in Arizona, Colorado, California, New Mexico, Nevada, and Wyoming was declared a primary disaster area by USDA. Counties in six other states also were declared primary disaster areas. Producers in adjoining counties also are eligible. To qualify for an emergency loan, producers generally must suffer crop losses of at least 30% or a loss of livestock or other property, according to a USDA fact sheet. Borrowers usually are required to buy crop insurance. The maximum loan is $500,000. About 30% of California’s population is covered by the drought emergency proclamation. Drought is expected to worsen the fire season, reduce irrigation supplies for farmers, and create risk for fish and wildlife habitat. Southern California was largely excluded from the proclamation. “With the reality of climate change abundantly clear in California, we’re taking urgent action to address acute water supply shortfalls in Northern and Central California while also building our water resilience to safeguard communities in the decades ahead,” said Newsom, who asked Californians to cut down on water use. Source - https://www.agriculture.com

Brazil - Drought conditions are hitting latest corn crop

Dry weather and poorly timed planting are weighing on Brazil's second corn crop this year, reviving fears of another surge in feed prices like the one that battered big meatpackers after a 2016 drought. Soaring prices convinced Brazilian farmers to plant their second corn crop outside the ideal climate window this year. But the crop was hit by the country's worst drought in five years, reducing yields. Given surging demand in global grains markets, a corn shortage could squeeze profit margins in Brazil for some of the world's biggest protein producers, including JBS SA and BRF SA. JBS and BRF declined to comment on margin pressure from rising feed costs. JBS's net income plunged 92% in 2016, in part due to surging Brazilian feed costs, and BRF's annual results swung to a loss. Corn represents 40% of the total cost of production for pork and chickens, says Jorge Lima, an executive with Sindicarne/ACAV, a meat lobby in Santa Catarina state. He said there is cause for concern about domestic corn prices, which more than doubled in the past year, to a record 100 reais per 60-kilo bag. Prices for other feed ingredients such as soymeal have also been rising. To mitigate the problem, meat companies lobbied Brazil's government to cut grain import tariffs from sellers outside the South American Mercosur trade bloc and eliminate other taxes weighing on the industry. Ricardo Santin, president of national meat lobby ABPA, said companies are better prepared now than in 2016, when the corn rally left the sector reeling. "Corn imports are picking up and there's a real drive to replace part of that cereal with wheat," Santin said. In spite of efficiency gains in the meat industry, the head of agribusiness at investment advisory Criteria Investimentos, Rodrigo Brolo, said companies cannot entirely pass through feed costs to consumers, so meat margins will inevitably suffer. The size of the impact will depend how well companies have hedged. Harvesting begins in June for Brazil's second corn crop, which has grown dramatically over the past decade as more of the country's farmers take advantage of a tropical climate to plant corn in their fields after harvesting soybeans. Brazil's second corn crop was estimated at 90 million tonnes at the start of the season by agribusiness consultancy Céleres. A few weeks into the harvest, Céleres lowered that projection to just 72.8 million tonnes due to the drought. In 2015/2016, similarly dry weather caused a 15 million tonne reduction in the country's corn production, according to the consultancy. However, Brazil's rainfall in the first five months of 2016 was greater and better distributed than in the beginning of this year, said meteorologist Celso Oliveira. Source - https://www.thecattlesite.com