Agroinsurance

USA - Researchers find viruses that might control insect that causes Citrus Greening

Citrus Greening is present in about 95 percent of the citrus trees in Florid. That is why the University of Florida scientists are working toward establishing a new biological method that may help farmers control the insect that transmits the deadly greening disease into citrus trees. By using a virus that may kill the insect, growers may be able to reduce the need for pesticides. Instead of spraying insecticides, scientists hope to harness the natural enemies of the tiny Asian citrus psyllid to manage the invasive pest, said Ozgur Batuman, a plant pathologist at the UF/IFAS Southwest Florida Research and Education Center in Immokalee. Batuman is leading a UF/IFAS research team investigating viruses that live in the digestive system of the psyllid. They want to see whether any of them can weaken or kill the insect. UF/IFAS scientists are getting promising early results with this research. Their latest research suggests a natural process that would kill the insect or at least prevent greening from being transmitted to citrus trees. Batuman said: “By reducing psyllid populations in their groves, growers hope to increase the quality of fruits and the productive lives of their trees by minimizing the number of times a tree is exposed to the greening pathogen.” Identifying viruses in the psyllids By using a test that amplifies DNA, scientists found five viruses in the guts of the psyllids they collected. They believe they can use those viruses to control the psyllids that live in the very groves from which scientists collected them. With these experiments, for the first time, scientists have taken big strides toward identifying viruses associated with the Florida psyllids. They also now better understand the presence of those viruses in the psyllids. Source - https://www.freshplaza.com

Italy - Droughts and not enough cold weather threaten stone fruit yields this year

Little rain has rained compared to what it would take to fill the reservoirs. This year the situation is worse compared to 2019 when water resources were sufficient. Medium-late and late varieties of peaches, percoche, and nectarines are in bloom. For many cultivars the flowering is very poor and uneven, therefore low yields are expected. Apricots of varieties such as Mogador and Pricia show poor flowering, with much lower yield forecasts. So reports Nicola Bollino of the Bollino company in San Ferdinando di Puglia, the new member of the Op APOC. "The stone fruit blossomed early and is keeping itself. If the temperatures remain above the average, thinning will be carried out by the end of the month. Compared to Campania, there are 10 days of delay compared to last year", continues Nicola. "In the winter there were few hours of cold compared to the previous years and this definitely had an impact". However, the harvest could have a positive commercial impact, given the more limited production volumes. The Bollino company uses photo-selective and anti-hailstorm nets on most of its land. "The rest will be covered slowly. All new plants must have such structures: it is very important to guarantee a quality product. I think this year we will see the difference between good farmers and bad farmers. So far it has not always been easy to compete: there is too much low-quality produce that lowers the prices of the good ones. And until those companies change their crops or activities, it will be a problem for everyone", adds Nicola. Among the novelties, the entry of the Bollino company into the Op APOC. "It is one of the largest associations in Southern Italy and represents an opportunity for us to grow. It allows us to work with important companies from different regions of Italy. Op APOC guarantees the aggregation of producers who, gathered together, can decide better on the future of the sector; can enhance individual producers and their productions; can guarantee more careful planning of financing. I give the example of the European funds, which you can access to, being part of the Op, and which are destined for processing and to the transformation of our products" explains Nicola. There is a lot of expectation. Especially now with the Coronavirus emergency. "Too much misinformation could lead to serious consequences. We hope that the situation will return to normal as soon as possible". Source - https://www.freshplaza.com

India - Widespread rains lash Punjab, Hry; crop loss assessment ordered in Punjab

Widespread rains lashed Punjab and Haryana on Friday, triggering fear among farmers about damage to wheat crop almost a month before the harvesting season. "Rains are not good at this stage and it will certainly affect the yield of wheat," Bhartiya Kisan Union (Ekta Ugrahan) general secretary Sukhdev Singh said. In view of the untimely rains and hailstorm, the Punjab government ordered an assessment of crop loss and all deputy commissioners have been asked to submit their preliminary report on Monday. Earlier, the AAP, which is the main opposition party in Punjab, demanded that an assessment of crop loss be conducted, with party legislator Harpal Singh Cheema writing to Chief Minister Amarinder Singh demanding 100 percent compensation for crop loss due to untimely rains. He claimed that rains and hailstorm have damaged standing crops in several parts of Punjab. Expressing concern over the losses, the Punjab chief minister ordered urgent steps to ascertain the extent of the damage to ensure that due compensation can be awarded to the affected farmers at the earliest. He directed the financial commissioner revenue to issue detailed instructions to all deputy commissioners to conduct a special assessment of crop loss, a statement said. Amarinder Singh also asked the revenue minister and other senior officers to tour the rain and hailstorm affected areas extensively and conduct an on-ground assessment. A senior official of the Punjab agriculture department had earlier said the current spell of rain would not cause any damage to stand wheat crop if it is not accompanied by high-velocity winds which could flatten the crop adversely impacting the yield. Punjab, known as the food bowl of the country, is expecting more than 175 lakh tonne of wheat output, the harvesting of which would start in April. According to the meteorological department, Ambala, Karnal, Bhiwani, Amritsar, Ludhiana, and Patiala witnessed 5 mm, 4 mm, 7 mm, 0.5 mm, 5 mm and 3 mm of rainfall respectively. Chandigarh, the common capital of Punjab and Haryana received 4.4 mm of rain. Hisar was the wettest place in Haryana with 37 mm of rain followed by Narnaul which gauged 30 mm of rainfall. Following the rains, maximum temperatures dropped several notches below the normal and settling between 17 degrees Celsius and 21 degrees Celsius. Source - https://www.outlookindia.com

Scientists release crop production outlook under shadow of locusts

The CropWatch research team from the Aerospace Information Research Institute (AIR) of the Chinese Academy of Sciences (CAS) released the latest issue of CropWatch Bulletin on February 29. It provides a comprehensive description of world-wide crop conditions between October 2019 and January 2020, as well as insights on the crop production outlook for 2020. Based on Big Earth Data, the report is jointly prepared on the CropWatch Cloud Platform by an international team with 48 analysts from 11 countries coordinated by the Chinese Academy of Sciences. The 209-page report covers prevailing agro-climatic patterns at global, continental, national and sub-national scales, crop and environmental conditions in major production zones in all continents of 42 core countries, as well as an individual analysis on China. These countries together produce and commercialize 80 percent of maize, rice, wheat, and soybean. In addition, the report also sheds light on the impact of disaster events on crop production of the inflicted regions. The production outlook focuses on the major cereal and oil crops (maize, rice, wheat, and soybean) countries in the Southern Hemisphere and some tropical and sub-tropical countries. The assessment is based mainly on remotely sensed data. The reporting period is characterized by extreme weather conditions, such as heavy rainfall in many parts of Africa and the consequent floods and the severe outbreak of desert locust, which has expanded from the Arabian Peninsula into western Asia, East Africa, South-Asia and brought looming threat to China. The report assesses that, by the end of January 2020, the impact of the desert locust on cereal production in Horn of Africa and South-Asia is limited, while locusts have damaged rangeland and orchards and threated the livestock over those regions. Pastures in Somalia were damaged by desert locusts. The report assesses that the greenness of rangelands in Bay and Jubbada Dhexe dropped by 9.2% and 4.1% respectively in late November when locusts passed through. In Kenya, the most severely damaged rangelands were observed in Turkana and Wajir in the north. According to the report, if locusts further spread to southern directly, they will also threaten maize production during the short rainy season. With respect to India and Pakistan, both affected by desert locusts in the second half of 2019, the wheat production in both countries "increased by 4%", according to the report. The locust impact was concentrated in the Rajasthan of India and the northern part of Sindh province in Pakistan, which are not "major wheat-producing areas" in both countries. However, "substantial losses" on pasture in Nawabshah and orchards in Hyderabad, Tando Allahyar, Matiari, and Mirpurkhas of Pakistan were observed. Source - https://phys.org

Spain - End of Castellon's citrus campaign affected by another storm

This Tuesday, storm Karine brought strong wind gusts to the interior of the province of Castellón, which reached 106 kilometers per hour in the municipality of Morella, or 95 in Fredes, and which have caused damage to local citrus fruits plantations that had yet to be harvested. As explained by the secretary-general of La Unió, Carles Peris, the strong winds have caused the fall of many late oranges, especially the Valencia and Navel varieties. "There is still no balance of losses, but it is clear that part of the final stage of the harvest has been affected. There will be damage, but the fact that the campaign was at quite an advanced stage has been important because there was little fruit left on the trees. There was more left to be harvested at this time in other years," said Peris. Source - https://www.freshplaza.com

Australia - Drought expected to impact pineapple growers into next season

Australian pineapple growers admit that the impact of the drought will continue to impact the fruit's crops for the next 12 months. President of Australian Pineapples says Stephen Pace says recent rainfall has been welcome and encouraging, but with a 2-3-year crop cycle, everything in the ground for the last 12 months has felt some sort of impact. "This will mean periods of light supply will continue in this time," he said. "Severe hailstorms in the Sunshine Coast in November directly hit six pineapple farms and damaged over half a million pineapples and plants. This impact will be felt over the next two months with the majority of fruit only making juice grade." Mr. Pace added that, in addition to the losses from hail, the drought delayed and depleted supply up until the New Year. "This created short supply and correspondingly high returns for growers," Mr. Pace said. "Since the first week of January, supply has increased sharply and quickly created a glut in the market causing returns to growers to fall sharply." While only one farm in Yeppoon was directly impacted in the Queensland bushfires in November; the Brooks farm lost buildings and machinery and there was minor crop damage and also planting material destroyed. "Thankfully the families were all okay and the majority of the crop was safe," Pure Gold Pineapples Sales Director Joe Craggs said. "While the bushfires are a major issue and an important story, the broader impacts of the ongoing drought and adverse weather are having a greater impact on the pineapple crop. The bushfires in other states have had a more significant impact on market access and overall demand. The closure of roads to WA took out 20 percent of the market just as production was increasing. The extra supply heading to NSW, Victoria and South Australia as demand remained low due to communities dealing with the shock of the major bushfires." Overall, production has been down for the last six months by up to 15 percent, according to Mr. Pace. "Even though we have received good rainfall in all growing areas because pineapples are a slow-growing crop, volumes will continue to be lower than normal," he said. "This is due to reverse in the next 6 months, but the combined impact of these issues is likely to continue to maintain stable supply until at least June." With the spread of production throughout Queensland and Northern Territory, the industry is able to supply great quality pineapples all year round. "Demand for fresh pineapple is growing at about five percent a year," Mr. Pace said. "Supply of pineapples is consistent all year round in Australia, but demand still increases in Summer as consumers continue to make the traditional tropical/summer link." Source - https://www.freshplaza.com

South Africa - Government declares national state of disaster due to drought

The declaration of a nation-wide state of disaster that appeared yesterday in the Government Gazette has taken agricultural organizations by surprise, given that large parts in the east of the country recently received good rains. In a statement Agri SA, an agricultural industry association said: "The rationale behind this national disaster declaration remains unclear due to good rains and good production prospects in most provinces." However, the organization points out that four of the country's nine provinces (parts of Limpopo, the Northern Cape, parts of the Western and the Eastern Cape) have been experiencing a prolonged drought which is in dire need of drought relief. "We appreciate the fact that provincial government can now access national resources to assist producers and communities affected by the drought," says Agri SA's disaster risk manager Andrea Campher. "We understand that four of the provinces really do need assistance but we don't understand the rationale of including all provinces. We will be seeking clarity on how the funds will be allocated across all provinces to assist farmers especially those farmers and farm workers affected by the drought." She adds that Agri SA is willing to work alongside the government to mobilize affected communities. Ivan Meyer, Western Cape Minister for Agriculture, welcomed the declaration, adding that the north and east of the Witzenberg regions in the Cape Winelands as well as the whole of the Central and Klein-Karoo are still very dry, with smaller areas critically dry. The declaration was signed by the Minister for Cooperative Governance and Traditional Affairs, Nkosazana Dlamini Zuma, on 26 February, the same day that Finance Minister Tito Mboweni announced the provisional allocation of R500 million [29.2 million euros] "to respond to the impact of recent floods and the ongoing drought." The precarious situation for farmers of Letsitele and Gamtoos One of the areas of most concern for the fruit industry is Letsitele in Limpopo, an important citrus-producing region in the country. Last season growers already had to get by with only 30% of their water allocation and hundreds of hectares of citrus orchards either removed or receiving a meager ration of water, only enough to keep it alive. To the great joy of citrus and vegetable growers, recent heavy rains in the catchment area have increased the level of the Tzaneen Dam from 4% to 18.55%, but the dam's level needs to increase to at least 29% in order for the area to enter the new water year at the same level as the year before. Farm dams in the area that was close to dry by the end of last year, are now between 50% to 100% full, but the expectation is that farmers will again receive only 30% of their water allocation from the provincial Tzaneen Dam. Gamtoos Valley beautifully green but dam levels drop In the Gamtoos Valley, Eastern Cape, the Kouga Dam stands at 17.5%, less than half of what it was last year. The dam level is better than it was this time two years ago (12%) but worryingly much lower than last year this time: 46.8%. Since December until mid-February, the area had around 150mm (more than its entire rainfall for 2019, producers note) but the concern is that it hasn't been raining much over its catchment area, the Langkloof. "We've been worrying about the drought for the past nine years," says a Gamtoos vegetable farmer. "At least we've been known to have a flood during every month of the year, so there's still hope." Source - https://www.freshplaza.com

India - Heavy rainfall, hailstorm lash Rajasthan

Heavy rainfall and hailstorm lashed parts of Rajasthan on Thursday, damaging crops in some districts. The sudden spell of rainfall led to waterlogging in several areas of the state capital Jaipur and a number of vehicles were stuck on streets. Barmer recorded 9.2 mm rainfall followed by 0.4mm in Jaipur, a MeT official said. Farmers in some districts, including Jaipur, Alwar, Bharatpur, and Dausa said they feared the sudden hailstorm could have further damaged their crops. Chief Minister Ashok Gehlot said all help would be provided to farmers. He asked Chief Secretary DB Gupta to seek crop damage reports from district collectors. BJP state president Satish Poonia said sudden hailstorms this month damaged crops in 15 districts. He said the state government could not give a satisfactory reply when opposition legislators raised the issue in the assembly. He said in 15 districts, only 2,246 farmers in Jodhpur district have been given compensation so far and the rest were told that crop loss was less than 33 percent. Source - https://www.indiatoday.in

Africa - Dry weather increases by two list of countries in need of external food assistance

The effects of inadequate rainfall on agricultural production added two countries – Namibia and Tanzania – to FAO’s list of countries in need of external assistance for food, adding to strains triggered by desert locusts even as global cereal production appears strong, according to FAO’s quarterly Crop Prospects and Food Situation report, released today. The report has a special section on the desert locust outbreak in East Africa. It highlights that while locusts had a minimal impact on the 2019 crops, as harvests had largely been concluded before the scourge arrived, there are “serious concerns for crops and pasture resources in 2020.” Farms in Ethiopia and Somalia can expect substantial crop losses if control measures are not scaled up, with the important seasonal “Gu” harvest in Somalia at risk, which accounts for about 60 percent of the country’s total annual cereal output. Locusts are already present in Somalia’s key sorghum producing areas and are near the main maize growing areas. The consequences of dry weather conditions aggravated food insecurity in Namibia and Tanzania, and both countries were added to the list of countries requiring external assistance. The list already includes Afghanistan, Bangladesh, Burkina Faso, Burundi, Cabo Verde, Cameroon, Central African Republic, Chad, Congo, Democratic People’s Republic of Korea, Democratic Republic of Congo, Djibouti, Eritrea, Eswatini, Ethiopia, Guinea, Haiti, Iraq, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mozambique, Myanmar, Niger, Nigeria, Pakistan, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syrian Arab Republic, Uganda, Venezuela, Yemen, Zambia, and Zimbabwe. Despite the troubles in East Africa, overall cereal production in the 51 Low-Income Food-Deficit Countries (LIFDCs) rose 1.0 percent in 2019, led by gains in Central Asia and the Near East. Nonetheless, the anticipated cereal import requirements for LIFDCs are estimated at 719 million tonners, up 4.2 million tonnes from the previous year. Import needs have risen notably in Zimbabwe and Kenya due to weak harvests and low stocks, while they have fallen in Afghanistan and the Syrian Arab Republic. FAO has also raised its estimate for 2019 world cereal production to 2 719 million tonnes due to higher than-previously-anticipated maize outputs in West Africa and Ukraine. For 2020 crops, the early global outlook for wheat production is favorable, particularly in the Far East in view of expected increased acreage and conducive weather conditions, while improved rainfall has boosted yield expectations in several Near Eastern countries. Source - https://www.miragenews.com

South Africa - Santam earnings hit by crop losses, fires and floods

South Africa’s largest short-term insurer Santam has reported solid operational results for 2019, recording a 7% Gross Written Premium (GWP) growth and 7.7% underwriting margin (2018: 9.2%) for the conventional insurance business. However, headline earnings per share decreased by 1% to 2069 cents. Lizé Lambrechts, the Santam Group CEO, said the group is satisfied with its performance, particularly in the face of the strained South African economy, which challenged growth in premiums over the year. “Our underwriting margin is at the high-end of our target range of 4% to 8%. Going forward the group will continue focusing on growth, disciplined underwriting actions and managing the risk associated with poor economic conditions,” she said. Fires, floods, and drought devastated various parts of the country during 2019, with Gauteng, KwaZulu-Natal and the Northern Cape taking a particular toll. Santam paid more than R800 million in Agri related claims during the period under review, it said. “We’ve seen time and again the impact disasters have on the country’s most vulnerable communities. Therefore, we are continuing to focus on entrenching resilience through sustainable partnerships,” Lambrechts said. Cash generated from operations increased to R5.8 billion (2018: R5.5 billion), due to better investment returns realized. Headline earnings amounted to 2069 cps, down by 1% from 2099 cps in 2018. A 22.2% return on capital was attained. The economic capital coverage ratio was 160% – at the midpoint of the target range of 150% to 170%. The board declared a final dividend of 718 cents per share (2018: 665 cps). Performance Following a difficult start to 2019, with a number of catastrophe events (impact of R334 million compared to R114 million in 2018) and significant insurance crop losses, the business experienced a subdued claims environment for the remainder of the year, resulting in strong underwriting performance. The Santam Commercial and Personal intermediated business reported excellent underwriting results, although lower than its exceptional 2018 results. The business benefitted from the new underwriting, administration, and product platform as well as disciplined underwriting actions. The motor class reported strong underwriting performance in the intermediated and direct distribution channels. The MiWay underwriting results were not significantly impacted by the catastrophe events during the period, resulting in an improved loss ratio of 54.2% (2018: 55.2%) and an underwriting profit of R393 million (2018: R334 million). The property class reported an underwriting result of R212 million, compared to the R519 million reported in 2018, negatively impacted by catastrophe events in South Africa and in Asia. The Specialist business benefited from the strong underwriting results achieved by the property and engineering classes of business. The liability results improved significantly from the 2018 position, which was negatively impacted by the product recall claims relating to the listeriosis outbreak. The Specialist business results were negatively impacted by the continued underwriting losses reported by the Trade Credit Business that is in run-off since August 2019. The crop insurance class was negatively impacted by significant hail and frost-related claims resulting in a net underwriting loss of R87 million (2018: net underwriting profit of R54 million). The Alternative Risk Transfer (ART) business reported excellent operating results of R171 million (2018: R96 million). Centriq and Santam Structured Insurance benefited from increased fee income and improved investment margins. Strong growth was achieved in the risk finance and alternative distribution businesses. The group reported a 9% growth in the property class on the back of strong growth in the specialist property business, following lower reinsurance capacity in the market. Crop insurance saw 22% growth in gross written premiums, supported by a change in the mix of farming crop types that increased insured values in South Africa, as well as reinsurance partner business. The motor class grew by 4%, with MiWay reporting 10% growth (gross written premium of R2.8 billion; 2018: R2.5 billion). The commercial motor intermediated business had strained growth as a result of difficult market conditions. Conventional insurance saw a satisfactory growth of 7%, it said. Gross written premiums from outside South Africa written on the Santam Ltd and Santam Namibia Ltd licenses amounted to R3.9 billion (2018: R3.4 billion), equating to 15% growth. This was propelled by strong growth in the corporate property and engineering businesses in Africa, as well as in Santam Re in Southeast Asia, India, and the Middle East. Several large construction projects outside South Africa benefitted the engineering class, which grew strongly by 20%. The liability class had a growth of 5% (2018: 2%), with a focus on improved profitability in a competitive climate. Net investment income attributable to shareholders, inclusive of investment return on insurance funds of R1 396 million (2018: R1 105 million) was reported. The improved performance was a result of fair value gains on financial assets and increased interest income. While 2018 saw a positive movement of R376 million in foreign exchange differences, negligible gains were seen in 2019. Outlook Santam said it has embarked on a new strategy for the next five years, where it will be focused on harnessing technology to drive innovation and efficiency, and improve its human capital capabilities. It will also expand its international business and growing its specialist business, the group said. “The investment market is likely to remain uncertain. The lower interest rate environment will negatively impact investment performance, while the non-rand-denominated investments increase foreign exchange volatility for the group. Santam will continue to assess the risk and implement appropriate responses, guided by our risk appetite,” Lambrechts said. Source - https://businesstech.co.za

India - Giving farmers an option risks insurance coverage

In 2016, one of the biggest reforms the Bharatiya Janata Party unveiled for the farm sector was the new crop insurance scheme. The new scheme--Pradhan Mantri Fasal Bima Yojana--promised farmers a higher cover at much lower premiums and covered localized crop damages, as well as post-harvest and re-sowing losses. Analysis Under the scheme, farmers pay only 1.5-2% of the sum assured for most crops, and state and central governments pitch in with the rest equally. The government was hoping that the low entry barrier and better cover would encourage more farmers to opt for crop insurance, and insurance coverage would increase to at least 50% of the gross cropped area in three years from around 23% at that time. Coverage has increased, but at a much slower pace than the government had anticipated. By 2018-19, crops over 30% of the gross cropped area were insured. All the effort made to expand the footprint of the scheme could now come undone, as the government acquiesced to demands from farmers' organizations and fulfilled its poll promise to make the scheme voluntary for loanee farmers from Kharif 2020. It was earlier mandatory for farmers availing crop loans to take crop insurance, as it made it easier for banks to recover the dues in case of crop failure. Farmer groups were not happy with that dispensation, as banks deducted premiums as well as claims automatically from their accounts. Also, since the crops were insured by banks, farmers had no access to insurance documents or to any redressal mechanism in case of delayed or inadequate claims. In 2018-19, about 60% of the total farmers covered under the crop insurance scheme were those who had availed crop loans. Making crop insurance optional for such a large chunk of farmers would reduce the pool of the insured, and push up actuarial premiums. Foreseeing this eventuality, the central government also decided to subsidize the scheme only if insurance premiums are capped at 25% of the sum assured in irrigated areas and 30% in un-irrigated areas. Insurance premiums are the highest in regions that are most vulnerable to crop failures, and the government's decision to cap premiums would be detrimental for farmers in those regions. The government has said it would work out a new scheme to provide financial support and risk mitigation to farmers in 151 water-stressed districts. But till such a scheme is put in place, the burden of bearing the higher premium would shift to states, which are already reluctant participants in crop insurance. State governments have to dole out insurance premiums as well as direct relief to farmers from state disaster relief funds in case of large crop loss, as not all farmers are covered under the insurance plan. Their outgo will now increase as insurance companies increase premiums on one hand, and more farmers fall out of the insurance net on the other. In its new avatar, the crop insurance scheme is likely to alienate other key stakeholders too. Making crop insurance optional would leave many farmers without adequate risk cover, and expose them to higher risks. It would also affect credit flow to small and marginal farmers as banks would be wary of taking the risk of crop loss on their books. A smaller and uncertain number of farmers to insure would leave insurance companies in the lurch as well. Private insurance companies are already reducing their exposure to crop insurance following rising claim ratios over the past two Kharif seasons. In 2018-19, insurance companies collected a premium of around 284.5 bln rupees under crop insurance and paid out claims totaling 247.4 bln rupees till the end of January, according to farm ministry data. The numbers are still being processed, and claims are seen well over 90% as there was damage to sown crops due to erratic monsoon rains. This Kharif season, claims are seen more than 100% of the 233.1-bln-rupee premium collected, as the extended monsoon season wreaked havoc on crops. To add to it, the General Insurance Corp has withdrawn the re-insurance commission on crop insurance, further squeezing margins that were available to the insurers. With claims piling up, re-insurance costs rising and the pool of insured shrinking, the number of insurance companies bidding for crop insurance clusters is likely to witness a sharp fall in Kharif 2020. This is despite the government sweetening the deal for insurance companies by allowing allocation of insurance clusters for three years instead of one and introducing clauses to ensure states make premium payments on time. Farm Minister Narendra Singh Tomar last week said the insured area is likely to fall by about 30% in the upcoming Kharif season due to the recent changes to the scheme. Farm ministry officials admit it would take years to even get back to coverage levels seen last year. The government was hoping that the changes to the crop insurance scheme would force insurers to strengthen presence at the district and zonal level, and design better products to educate and woo farmers. This could take years to materialize, the risks--of farmers slipping out of the coverage net--far outweigh the gains. Source - http://www.cogencis.com

USA - USDA gives upbeat look at crop year

A first glimpse of the prospects for the 2020 growing season was revealed to kick off the 96th Agricultural Outlook Forum. U.S. Department of Agriculture Chief Economist Robert Johansson opened the forum with the agency’s outlook for commodity markets, trade and farm income for 2020. “We know that 2019 was a year filled with uncertainty for the agricultural sector. While the U.S. economy continued to grow, producers were faced with one challenging uncertainty after another,” Johansson said. “Weather conditions were terrible for planned production — it was the wettest year on record and it was also the hottest year on record for many areas; it was the coldest, slowest planting season resulting in the most prevent plant recorded; we went into 2019 with record soybean stocks and uncertain demand for animal proteins globally; and underlying it all was extraordinary uncertainty about trading relationships with our primary customers. “Those conditions characterized the 2019 season, and some of those conditions persist today. However, driven by expectations of more normal conditions and finalization of several trade deals, 2020 is shaping up to be a year with less uncertainty, giving producers a better chance to plan and innovate.” The Grains and Oilseeds Outlook was prepared by members of the wheat, feed grains, rice and oilseeds interagency commodity estimates committees of the U.S. Department of Agriculture. The 2020 projections assume normal weather conditions for spring planting and summer crop development. These forecasts will be updated in the May 12 World Agricultural Supply and Demand Estimates WASDE report. The May WASDE will incorporate farmers’ 2020 planting intentions as indicated in the March 31 NASS prospective plantings report and survey-based forecasts for winter wheat production, as well as global, country-by-country supply and demand projections. Here are the corn, soybeans and wheat highlights: Corn • The U.S. corn outlook for 2020-2021 is for record production and domestic use, increased exports and higher ending stocks. • Planted acres are projected to reach 94 million, up 5% from last year’s 89.7 million acres. • The corn crop is projected at 15.5 billion bushels, 13% above a year ago with an increase in area from last year’s weather-reduced plantings and a return to trend yields. • The yield projection of 178.5 bushels per acre is based on a weather-adjusted trend assuming normal planting progress and summer growing season weather. • Despite beginning stocks forecast down from a year ago, total corn supplies at 17.4 billion bushels are forecast to be record high. • Total U.S. corn use is forecast to rise 5% from a year ago on record domestic use and a rebound in exports. • Food, seed and industrial use is projected up fractionally at 6.8 billion bushels, driven by slightly higher corn used for ethanol. • Corn used for ethanol is up less than 1% from a year ago, based on expectations of essentially flat motor gasoline consumption and a modest increase in exports. • Feed and residual use is up 275 million bushels to 5.8 billion, with a larger crop, continued growth in grain consuming animal units and lower expected prices. • Corn exports are up 375 million bushels to 2.1 billion, reflecting expectations of global trade growth, but with continued competition from other exporters such as Argentina, Brazil and Ukraine. • Ending stocks are projected at 2.7 billion bushels, up 745 million from 2019-2020, resulting in a 25 cent per bushel decline from a year ago in the season-average farm price to $3.60 per bushel. Soybeans • The 2020-2021 outlook for U.S. soybeans is for higher supplies, crush and exports and lower ending stocks. • The USDA anticipates 85 million planted soybeans acres, a 12% increase over the 76.1 million in 2019. • Soybean supplies are projected at 4.6 billion bushels, up 3% from 2019-2020 with higher production more than offsetting lower beginning stocks. • Soybean production is projected at 4.2 billion bushels, 18% above a year earlier with plantings recovering from last year’s weather-related decline and a return to trend yields. • The yield forecast of 49.8 bushels per acre is based on a weather-adjusted trend assuming normal growing season weather. • Soybean crush is projected at a record 2.1 billion bushels, driven by higher domestic use of soybean meal that more than offsets slightly lower meal exports. • Soybean meal prices are forecast at $310 per short ton. • Domestic use of soybean oil is projected up 2% on gains for edible oil and biodiesel consumption. • With lower projected soybean oil exports, soybean oil ending stocks for 2020-2021 are projected at 1.55 billion pounds, up 2% from last year, but still low compared to recent history. Soybean oil prices are forecast at 33 cents per pound. • Soybean exports are projected at 2.05 billion bushels, up 225 million from the 2019-2020 forecast. Increasing global import demand, particularly for China, and a recovery in U.S. market share will support higher U.S. soybean exports following a sharp decline over the past two years. • Soybean ending stocks for 2020-2021 are projected at 320 million bushels, down 105 million from 2019-2020 and the lowest since 2016-2017. • With declining stocks, the soybean season-average farm price is projected at $8.80 per bushel, up only slightly from last year. However prices will remain pressured by increased South American production and export competition. Wheat • The 2020-2021 outlook for U.S. wheat is for tighter supplies, slightly lower total use and declining ending stocks. • U.S. wheat production is projected down about 4% from last year to 1.836 billion bushels on lower projected yield. • Low winter wheat plantings are supporting spring wheat prices, but persistent wet soils and unharvested corn in the Northern Plains could prevent or delay some planting. • Total wheat area for 2020-2021 is projected at 45 million acres, down 158,000 acres from the previous year and a record low. • The all wheat yield is projected down nearly 7% from last year’s near record to 48.2 bushels per acre and is based in a linear trend. • Lower beginning stocks and a smaller crop more than offset increased imports to reduce 2020-2021 supplies by 6% to 2.916 billion bushels, a five-year low. • A projected total use of 2.139 million bushels is down slightly from a year earlier, but remains above the five-year average. The year-over-year reduction stems from lower domestic use; exports are flat, but still strong at 1 billion bushels. • Forecast growth in global wheat demand supports the 2020-2021 export forecast. Reduced U.S. supplies and relatively stable use lead to substantially lower ending stocks. • At 777 million bushels, carryout for the marketing year is more than 17% below the previous year and the lowest level since 2014-2015. • The tighter balance sheet supports a 2020-2021 season average farm price of $4.90 per bushel, up 35 cents from the previous year. Source - https://www.agrinews-pubs.com

India - More than rain, wind can ruin wheat crop

The rain anticipated over the next few days may impact wheat and other rabi crops in the north-western States of Haryana and Punjab if it is accompanied by the strong wind, experts said on Wednesday. “We are not sure whether there would be strong winds along with the rains. Strong winds can lead to the lodging of wheat resulting in crop loss,” said GP Singh, Director of the Indian Institute of Wheat and Barley Research, an Indian Council of Agricultural Research laboratory, located at Karnal. According to Singh, otherwise, a bumper wheat crop is expected this year. The India Meteorological Department (IMD) and private weather forecasting agencies such as Skymet have forecast widespread rain across many parts of North India in the next three-four days. According to IMD, some parts of North India can expect gusty winds of up to 40 km per hour. “Light to moderate rains can be beneficial to the crop, as they can help the grains to become bigger. But hailstorms, which are expected in some pockets, can damage the standing crop,” said GP Sharma of Skymet. He said there could be four days of rains, which would peak on March 6. “Farmers are always worried about unpredictable inclement weather,” Sharma said. Ajay Vir Jhakhar of Bharat Krishak Samaj and Chairman of Punjab Farmers’ Commission, said that with rains, wet soil can loosen up and if there are winds, they can upset the balance of the standing wheat crop, which is already heavy with grains. But rains alone will have very little impact on the crop, Jhakhar said. Meanwhile, Rajinder Singh, a former Haryana government agricultural extension worker in Karnal district, said farmers in many villages in the district are worried even about heavy rainfall. This is because due to encroachment as well as road construction, drainage is in disrepair in these villages. Water-logging at this time can lead to stem rotting, affecting the crop. Many wheat farmers in and around Gharaunda already suffered losses in the rains that lashed on February 29. They have already complained to the government, Singh said. Mustard crop loss February 29 showers of rain, accompanied by hailstorms, also impacted mustard and other crops in many Haryana districts, including Rewari, Mahendragarh, Nuh, Bhiwani, and Jhajjar, prompting the Haryana government to direct insurance companies to assess the crop damage for compensating the farmers. The rains happened when the mustard crop was almost ready for harvest and as a result, the crop damage was substantial in many areas. “The assessment is currently on to decide on the compensation,” said Suresh Gahlawat, a senior Haryana Agricultural Department official looking after agricultural extension services. Source - https://www.thehindubusinessline.com

UK - Bad weather hits Origin Enterprise as crop volumes fall

Revenue at Agri services group Origin Enterprises fell in the first half of the year, declining almost 14 percent to €604.9 million. The group, which provides specialist agronomy advice, crop inputs, and digital agricultural solutions, reported an operating loss of €2.8 million over the six months to January 31st, 2020. Underlying profit was down €11.4 million as lower autumn and winter crop plantings hit business volumes. “It has been a challenging first six months for the group. Operating conditions faced by farmers and growers, principally in the UK, due to intense and prolonged rainfall has led to a 40 percent year-on-year reduction in the level of autumn and winter crop plantings,” said chief executive Tom O’Mahony. “This significantly exceeds the 25 percent reduction estimated at the time of our Q1 trading update in November 2019 and has resulted in lower than expected underlying profitability and cash generation in our largest division, Ireland and the UK.” However, Continental Europe and Latin America divisions were in line with expectations, recording good performances in the first half of the year and showing an underlying increase in operating profits. Net debt for the group rose to €264.2 million, with the company paying an interim dividend of 3.15 cents per share. Source - https://www.irishtimes.com