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01.03.2018

USA - Climate change threatens major crops in California

California currently provides two-thirds of the country’s fruits and nuts, but according to a new studypublished Tuesday, by the end of the century California’s climate will no longer be able to support the state’s major crops, including orchards. The report, published in “Agronomy,” warns that the increased rate and scale of climate change is “beyond the realm of experience” for the agricultural community, and unless farmers take urgent measures, the consequences could threaten national food security. “For California, as an agricultural leader for various commodities, impacts on agricultural production due to climate change would not only translate into national food security issues but also economic impacts that could disrupt state and national commodity systems,” the report warns. The study, led by researchers from the University of California, Merced and Daviscampuses, looked at past and current trends in California’s climate and examined what impact record low levels of snowpack, and extreme events such as drought will have on crop yields over time. Climate scientist and author Peter Gleick called it the most important report he’s seen on the impact of climate change on California agriculture. California produces more than a third of the nation’s vegetables and two-thirds of its fruits and nuts. Irrigated crops account for nearly 90 percent of the harvested crops in the state.  The total value of the state’s fruits and nuts in 2015 was $18.1 billion, nearly 67 percent of the country’s total value, according to a report issued by the California Department of Food and Agriculure. The same report notes that California produces between 80 and 95 percent of country’s apricots, grapes, lemons, mandarins, nectarines, plums, and strawberries. It also supplies more than half of the country’s avocados and raspberries. The Sierra Nevada snowpack, a primary source of the state’s water supply, could see a 65 percent loss by the end of the century because of  warmer temperatures, according to the report.Historically low precipitation rates and diminishing snowpack levels could severely disrupt those industries. Global crop production will also have to double by 2050 to meet the demand of the world’s growing population, according to an estimate from the United Nations. But climate change could threaten eight out of the 20 major crops grown in California — almonds, wine grapes, table grapes, strawberries, hay, walnuts, freestone peaches, and cherries. The authors of the report say they hope their findings will provide researchers and policymakers guidance on how to prepare for upcoming weather changes. Source - https://ww2.kqed.org

01.03.2018

New Zealand - South Canterbury arable farmers lose $30m from stubble-burn ban

A fire ban and wet autumn and winter may have cost Mid and South Canterbury's arable farmers more than $30 million, with several of them showing losses of more than $500,000. "I think the $30m loss is true, I've done the same calculations. It's cost me a considerable amount of money," said Federated Farmers arable industry group Guy Wigley, who farms at Waimate. Wigley said every week of autumn planting which had been delayed had cost him about a quarter of a tonne of yield. The average wheat yield is eight to 12 tonnes per hectare. Typically with autumn-sown wheat, farmers looked at a target planting date at the end of March, Wigley said. A farmer who did not want to be named said he suffered substantial financial losses because he was unable to burn stubble and sow his crops during the Canterbury fire ban imposed during the Port Hills fires. The dollar amount did not allow for extra tractor hours, costs incurred loosening wet straw rows for it to dry out, further cultivation to bury unburnt straw and slug bait, he said. The farmer said last autumn the fire index never rose above 45 in South Canterbury, and burning stubble would have posed no threat. Fire and emergency officials must realise that modern farming relied heavily on fire as an essential tool, especially with direct drilling, he said. Wigley said there were alternatives to burning such as ploughing or discing, but they had to be planned for at harvest time. The straw needed to be bailed and carted. Farmers also ended up with a lot more disease, he said. Burning was good for discouraging slug activity. "If you don't burn straw, you need to get rid of the trash or stubble so that you can create a seedbed for planting the next crop," he said. "And if you don't burn you end up with a lot more slugs which means you have to use a lot more chemicals. And ploughing is slow and expensive to do." Wigley said he managed to get a small amount of stubble burnt in the autumn but had to plant an area of the farm in spring, which failed to yield as well. "An autumn-sown crop invariably yields better than a spring sown crop - it's as simple as that," he said "I had to plant 20 per cent of my farm in the spring, and also some of what I planted in the autumn went in a little later than I would have liked." Wigley said the ban on burning stubble coincided with a wet autumn. When he could burn it was too wet, he said. The other inhibitor to planting crops last autumn was the sodden condition of the paddocks which would not support machinery. If the weather had been kind over the winter farmers may have been able to "travel" much sooner, he said. "But the paddocks were wet through the winter and the first half of the spring. So we had to plant quite late. If you go from autumn to spring sowing normally, you can get planting in early August, but we couldn't get going until the middle of the spring. This exacerbated the lost yield from transferring autumn planting to spring planting because that yield penalty was worse than an average year." "A $500,000 loss? Seems reasonable to me. I would say that's the value of burning." Source - https://www.stuff.co.nz

01.03.2018

India - Windfall profit for insurance firms from crop insurance scheme

The crop insurance scheme of the state government is proving to be extremely profitable for insurance companies but, not so much for the farmers. This was revealed through a question raised by Congress MLA from Baihar assembly seat Sanjay Uikey to agriculture minister Gauri Shankar Bisen. The answer provided by the state government to the assembly revealed that in the year 2016, insurance companies collected a premium of Rs 2,850.27 crore for kharif crops, while farmers’ claim for crop damages was for only Rs 1,686.15 crore — which meant insurance companies profited by a whopping Rs 1,164.12 crore. There is also no mention of how much has been actually paid to settle claims made by the farmers. Rs 1,686.15 crore was the amount claimed for damages in the agrarian sector but the actual payment may be much lesser than what was claimed. Though the question could not come up in the state assembly on Tuesday as the House was adjourned, the day’s agenda listed the question with answer supported by statistics. In his question to the agriculture minister, Uikey asked how much money has been raised from farmers to pay premium for crop insurance, the total premium deposited and how much was paid by the insurance companies to settle claims. According to the state assembly statistics, a total of 38,47,819 farmers were insured for kharif crop in the year 2016 by three insurance companies, including HDFC ERGO, ICICI Lombard and AIC (Agriculture Insurance Company) for an insured amount of Rs 17,647.37. Farmers paid premium of Rs 375 crore, while the state government exchequer paid Rs 1,237.62 crore and the Union government another Rs 1,237.62 crore. Thus, the total premium was Rs 2,850.27 crore. For kharif crop damages that year, farmers in Ashoknagar claimed Rs 144.52 crore, in Guna Rs 212.3 crore, in Shivpuri Rs 125.52 crore, in Vidisha Rs 403.61 crore while other districts claimed much lesser amount. Kharif crops this year has been insured for a total premium of Rs 2,537.09 crore covering 34,25,550 farmers. For an insured amount of Rs 24,404.37 crore, farmers have paid Rs 503.79 crore, while state and Union governments have paid Rs 1,016.65 crore each. Source - https://timesofindia.indiatimes.com

01.03.2018

Africa - Index insurance trialled as part of climate change fight

Since the end of the 2000s, there has been an increase in projects in sub-Saharan Africa to develop index insurance, based on weather indices such as rainfall or temperature. It is intended to help farmers cope with climate change, before droughts sets in. These measures should make it possible to shield farmers from the effects of adverse climatic conditions by paying them compensation before the risk occurs, rather than classic insurance which sets compensation on the basis of reported crop losses. Index insurances have been presented as an answer to climate change which will affect certain regions of Sub-Saharan Africa, by increasing the frequency of drought. It also holds the advantage of being cheaper and, therefore, more accessible to small farmers, who make up a large part of the total in the countries of the region. Facilitating access to credit Currently, dozens of projects spread across twenty countries are led by the World Bank to develop this type of insurance. In West Africa, initiatives are coordinated by the PlaNet guarantee network in four countries: Benin, Burkina Faso, Mali and Senegal. The network is in charge of creating index insurance products, which will then be sold to private actors particularly, microfinance institutions. For Anne Durez, head of marketing at PlaNet guarantee, index insurance follows a double objective: “stabilising farmers’ incomes and allowing them to finance their activities.” “Index Insurance is a guarantee for microfinance institutions,” she said at a seminar on risk management in agriculture on the 23 February. “These institutions can lend more to enable farmers to invest more on input and thereby boost yields.” In Kenya this increase in yield has been estimated at 10% for corn crop, which would correspond to an additional $37 per cultivated acre. Hesitation on both the supply and demand sides Despite encouraging results, index insurance policies have met with opposition from farmers and insuring microfinance organisations. Antoine Leblois, researcher at INRA (a French public institute on agricultural science), speaking on behalf of farmers stresses: “a lack of understanding and trust in the insurance system”. “Farmers don’t understand the need for insurance.” Hesitancy amongst the insurers is attributable to the “inexactitude of the indexes”, which are not directly linked to agricultural yields. The indices can point to drought periods without any real loss being observed. A system threatened by climate change Paradoxically, although climate change is the reason behind such insurance it could also threaten their viability by leading to a higher recurrence of droughts and thus payment to farmers. “The profitability of this insurance needs to be recalculated every year. With the increased risk of drought, the prices are also likely to go up, which would compromise access to such insurance for a large number of the population,” said Durez. One solution would be to “mutualise the regions covered” she suggested, so that those not affected by drought would for pay for those that are. Source - https://www.euractiv.com

28.02.2018

USA - Widespread drought stoking fears that 2012's devastation will repeat

Western Illinois might be close to the Mississippi and Illinois rivers, but it’s the driest part of the state this year. “We really haven’t really had any measurable rain since the middle of October,” says Ken Schafer, who farms winter wheat, corn and soybeans in Jerseyville, north of St. Louis. “I dug some post-holes this winter, and it's just dust.” His farm is in an area that the U.S. Drought Monitor considers “severe.” Some of the nation’s worst areas of drought are in southwest Kansas, much of Oklahoma and a slice of Missouri. But several states are in some sort of drought, from Illinois to California, the Dakotas to Texas. The worry also is widespread, considering the reach of this winter’s drought is even worse than in 2012, a year that brought the worst drought in the U.S. since the Dust Bowl and cost cost farmers, ranchers and governments an estimated $30 billion, according to the federal National Centers for Environmental Information. If things don’t get better, it’ll show in producers’ pocketbooks and on the taxpayers’ dime — a difficult thing to swallow considering the U.S. Department of Agriculture expects farmers’ incomes to be at a 12-year low even if crop yields stay high. However, it’s only February, which is one of the driest months on the calendar. And, outside of some winter wheat, the lack of moisture won’t impact many crops. There’s still time for spring rains to rehydrate the region. “If this was July, we'd be hitting the panic button,” according to Illinois State Climatologist Jim Angel. “But in the wintertime, it's always kind of a little odd because droughts develop slowly and you know there's not much going on out there.” Ken Schafer's farm is in Jerseyville, Illinois, about 35 miles north of St. Louis. It's the driest area in the state. He says he'll need at least some moisture before he plants this corn field in April, plus steady moisture afterward. A few larger rainfall events could bring areas back to normal by the time planting season comes around. That’s what happened in 2013, when the 2012 drought lingered into the new year causing conditions even drier than now. But sudden, widespread precipitation changed things around. “We had torrential rains in April of that year,” he said. “We had some places in Illinois that had 8 to 12 to 16 inches. I mean, it was like Biblical amounts of rainfall in one month.” Climate change is bringing these massive, wet storms to the Midwest more often, Angel says, especially in the last four or five years. Because of that, he said that even if there is a drought this year, it likely won’t stay in the Midwest for long. The West is another story: “California, Arizona, New Mexico, that area is getting drier over time,” he says. “And that's some of the expectation of how it will move in the future; that we'll continue to get wetter and they'll continue to get drier.” Dry country In the southeast corner of Colorado, Gary Melcher says there’s been at least 10 years of winter drought out of the last 13. The region got rain throughout much of 2017, and Melcher, who lives in Holly, says they’ll depend on what’s left over. “We were blessed last year with some moisture so that's given us the ability to hold on and wait for a little bit of this spring moisture hopefully,” he says. But it’s not just crops. Dustin Stein has a cattle ranch in Mancos, located in southwest Colorado. He’s a relatively young farmer, in his 30s, and started out in the midst of the 2012 drought. He says in the roughest, driest years, farmers have to make sacrifices because there’s not enough grass growing in the fields. “In a drought year, you’re forced to sell off your asset [cows and heifers] in a way that helps you keep your other assets alive,” Stein says, adding that it doesn’t just affect ranchers that year, but down the line in terms of herd numbers and profits. Farmers can get protection from these extreme climate events through crop insurance. In years without such events, farmers and private insurance companies cover much of the costs through premiums. But when disastrous storms or a drought strike, the federal government is stuck with most of the bill. In 2012, for example, there were $17 billion in crop insurance payouts, and the government covered $12 billion. That was an unusually high payout (more than twice the cost of recent years), but an illustration of just how much a major climate event affects financials. After getting a half-inch of rain in early February, Ken Schafer's winter wheat is starting to green up. It's a hearty crop that flourishes with less moisture than corn or soybeans. There’s also a need to adapt, Stein says, though he knows young farmers may not have the experience to understand how their fields stand up to prolonged drought. “So we’re constructing a barley fodder house right now to grow hydroponically grown barley,” he says. “And so that will allow me to not have to sell any animals and be able to keep them healthy and alive through the summer, even though I can’t grow any grass on the acreage that we own or lease.” But sometimes even adaptations can’t stand up Mother Nature. Stein says he’ll be hoping for the best. If he doesn’t see the grass coming back to life in spring, though, he knows the drought is starting to impact his region. Angel says his agency will likely know whether the Midwest is in for a bad drought by late spring. “May is a critical month because typically we get a lot of rain in May. So if you don't get it in May, then that's your last best chance of avoiding the drought,” he says. And back in Jerseyville, Schafer says he’ll need at least a little rain by April to help his corn sprout. Yet, he’s also concerned about possible massive storm events, because flooding won’t be good for his crops, either. But even with all the possible challenges ahead of him, Schafer is like most farmers: optimistic. “We're the most optimistic people there ever was. Or we wouldn't put a seed in the ground every spring,” he says. “We just know it's going to get better.” Source - http://www.kunc.org

28.02.2018

USA - Almond growers assess impact of freeze

Steve Van Duyn looked around an almond orchard he manages southeast of Galt on a chilly morning, surveying the effects of California's weeklong run of freezing weather. Several nights with temperatures dropping below freezing have Van Duyn and other growers concerned about their crops. "We've sustained some damage," he said. "The full extent, we won't know for quite some time. In a few weeks, we'll know—we'll have a better guess—but we really won't know till harvest time." Van Duyn said he'd been irrigating orchards each morning, to help warm the blossoming trees as much as possible. The deep freeze that struck the Sacramento and San Joaquin valleys had many growers pulling all-nighters, trying to save their crops. "It was unprecedented for just a number of years, as long as I can remember, that we were up every night, Monday through Friday night," said Ripon-based almond farmer David Phippen. Mel Machado, director of member relations for the Blue Diamond Growers almond marketing cooperative, said reports from Glenn to Kern counties showed temperatures as low as the mid-20s, with many areas dropping to 31 to 33. Though Machado and others can put numbers on the temperatures, they can't do the same to the 2018 almond crop just yet. "Long story short, I can't walk into my brother's marketing office and say, 'Here's what the crop's going to be,'" Phippen said. Reports of damage vary widely. "Because of the stage of (bloom) development, because of whether you have water or not to apply, we will see fields that are virtually untouched adjacent to ones that are severely damaged," Machado said. "It's going to be that variable, and it's going to make it that much more difficult to really figure it out." California farmers harvested 2.1 billion pounds of almonds on 940,000 bearing acres during the 2016-17 season, according to the Almond Board of California. The objective forecast for 2017-18 calls for close to 2.3 billion pounds. The cold snap resulted from a shift in the weather pattern, said Jeff Barlow, a meteorologist in the Hanford office of the National Weather Service, who said weather systems had been "coming out of the Gulf of Alaska and dropping south across the Pacific Northwest and sliding into Northern California, and then coming across the Central California interior." At the orchard Van Duyn manages near Galt—one of the almond, walnut and winegrape operations he oversees in San Joaquin and Stanislaus counties—he said the third-leaf Independence trees produce 400-500 pounds per acre in a good year. "So if we come in with a crop of between 400-500, I'd say we had negligible damage," Van Duyn said. "If we come in at 200-250, I'd say we had a 50 percent crop reduction." Van Duyn found damaged blossoms in the orchard, but also found many that survived the freeze intact. "Every morning, we're up here running the water from about anywhere from 10 o'clock at night to 2 in the morning starts, and running them all the way till 9 o'clock, 9:30 before it warms up," Van Duyn said. That water is a crucial factor, said David Doll, a University of California Cooperative Extension farm advisor in Merced County. "Most farmers rely on the use of water applications at a rate of 30 gallons per acre per minute," Doll said. "This will warm the orchard by 2-3 degrees, depending on the dew point and temperature. Farmers can also use wind machines, but this isn't as common" in almonds, he added. Phippen said he's seen no crop damage so far around Ripon and Manteca, but orchards near Oakdale and Waterford weren't as fortunate. One 20-acre parcel owned and farmed by his son-in-law suffered severe damage, he said. Phippen added that he's guardedly optimistic about his crop, thanks in large part to the warm weather that set off the bloom earlier than usual. "We've never had this much frost, so that would tell you this isn't stellar," he said, "but the bloom has been one of the nicest blooms I've ever seen. There's been a long dwell on the bloom. The concurrent pollination from one variety to the other has overlapped beautifully. We've had a lot of bee flight hours. There's not a lot to be said negative about the bloom period that we've had. It's just that we had this frost along with it." Phippen said he thinks he'll know by the first of May how the harvest will shape up. An almond tree's vulnerability to frost will depend on a number of factors, Doll said. "As the tree progresses through bloom and into nut development, it becomes more sensitive to frost conditions," Doll said. "For example, the critical temperature at pink bud (beginning of bloom) is 25 degrees; at full bloom, it is 26 degrees; and at nutlet stage, it is 28 degrees. Extended periods at or below this temperature (greater than 30 minutes) will lead to crop loss." Citrus growers in the southern San Joaquin Valley used wind machines and irrigation to fight the chill, according to California Citrus Mutual. With nearly half of this season's crop already harvested, growers were aiming to protect next year's crop, as the warmer temperatures earlier in the month caused the bloom to arrive early. "The coming days will reveal if damage was incurred," Citrus Mutual said. "Growers are optimistic that if there is damage, the trees will have ample time to bounce back and push out another set of blooms this spring." Warmer temperatures could reach the Central Valley this week, Barlow said, as two weather systems reach California. Source - http://agalert.com

28.02.2018

Canada - Livestock focus of Sask. crop insurance changes

Saskatchewan’s 2018 crop insurance program will contain fire insurance for pastures and better compensation for livestock lost due to predators. Agriculture Minister Lyle Stewart announced details for the coming year this morning in Melville. Average coverage levels are $216 per acre compared to $217 last year, mostly as a result of lower crop prices. The average premium is $8.41 per acre, down from $8.51 per acre last year. More crops will be insurable under the Contract Price Option, including malt barley. Saskatchewan Cattlemen’s Association chair Rick Toney welcomed changes to forage insurance and predation compensation. “Compensating producers at a rate more in line with the expected value of the animal is important in treating livestock similar to crop loss,” he said. “These changes, including adding wildfire coverage to pasture insurance, are all things we discussed with Saskatchewan Crop Insurance Corp. and are glad to see the positive response to industry suggestions.” The deadline to make changes or renew crop insurance is March 31. Source - https://www.producer.com

28.02.2018

India - Rs500,000 insurance announced for each farmer in Telangana

Telangana Chief Minister K. Chandrasekhar Rao has announced an accident insurance cover of Rs500,000 (Dh28,269) for each of the seven million farmers in the state. The chief minister, who was on a visit to the northern Telangana districts of Karimnagar and Adilabad, told a meeting of farmers that the premium under the scheme would be paid by the government and it would cover death due to accidents as well as ill health. He also announced a farmers’ investment incentive scheme for horticultural crops. Under this scheme the government will pay incentive of Rs4,000 per acre per crop. In cases where a farmer foregoes the incentive, the government will transfer the amount to the respective farmers’ coordination committee. The chief minister said the purpose of the regional farmers coordination committee meetings was to understand problems being faced by farmers and resolving them. In his first direct attack on Prime Minister Narendra Modi, KCR expressed disappointment over his failure to act on farmers’ problems. He told the meeting that he had met the prime minister and Cabinet members in the NDA government 20 times, requesting them to link the national rural employment guarantee scheme with agriculture. “They will only listen but do nothing,” he said. He blamed the incumbent BJP and the previous Congress governments at the centre for the plight of the farmers in the country. To the loud cheers from the audience he said that he may have to lead a national movement on the issue of farmers. “Since independence only Congress and BJP have ruled the country and neglected the agriculture sector”, he said. “When the union government in increasing the salaries and DA with pay revision every year [for the employees] why it is not increasing the minimum support price of farm produce every year”, he asked. Source - http://m.gulfnews.com

28.02.2018

Zimbabwe - Crop prediction has to be cut in half

Erratic rainfall patterns could dampen Zimbabwe’s economic recovery as output in the key agriculture sector geared up for a knock. Farmers claimed that grain production would only be about half the projected output. The Food and Nutrition Security Working Group Southern Africa has already said in its latest report that “in the absence of consistent rains in February, the dry conditions experienced in December and January will diminish water supplies for domestic, agricultural and commercial use” in Southern Africa. The report said that southern Zimbabwe had experienced mild rains in late January when crops had already wilted. Zimbabwe had projected 1.7 million tons of maize for this year’s grain harvest, which begins in March. The country was bargaining on the anticipation of better rains, while the government also launched an ambitious command agriculture programme that provided inputs to farmers. The Zimbabwe Commercial Farmers Union (ZCFU) has now said that it expected that grain output would halve to nearly 850000 tons of maize. “We cannot have very good harvests as we expected after such a dry period,” state media quoted Wonder Chabikwa, president of the ZCFU, saying. Zimbabwe has over the past few years relied on maize imports from Zambia and South Africa as former President Robert Mugabe’s government paid heavily for taking over land from white commercial farmers. New leader Emmerson Mnangagwa has said that he will not reverse the land reform programme but has pledged to pay compensation to farmers who lost their land. The government is now issuing farmers in the country with 99-year leases to help them secure funding from banks. Mnangagwa also said that he would take away land that was not being utilised for productive purposes. But for the current season, farmers are counting losses from crop write-offs owing to the earlier persistent dry spell. Some of the late planted crops could, however, provide some respite. The quality of tobacco, another major crop and forex earner in Zimbabwe, was expected to be lower this year, owing to strains from the erratic rainfall patterns. Source - https://www.africanindy.com

28.02.2018

Canada - PST exemption announced for Sask. producers

Premier Scott Moe told Saskatchewan families his government will reinstate the Provincial Sales Tax (PST) exemption for agriculture, life and health insurance premiums. “Our government will help families and small businesses save money, invest and help our province grow,” Moe said in a statement. “Part of that commitment is to exempt agriculture, life and health insurance from PST.” The exemption, effective today, includes crop, livestock and hail insurance premiums as well as individual and group life and health insurance premiums. Todd Lewis, President of the Agricultural Producers Association of Saskatchewan (APAS), said he was very happy to hear about the exemption. He said producers are consumers of big products and insurance is one of them. "It's not unusual for between crop insurance and all the other insurance products we use that lots of farms have a $100,000 insurance bill each year. So it doesn't take long for the PST to run into the thousands of dollars and it comes straight off our bottom line," he said. The exemption is retroactive to August 1, 2017 — the date PST was applied to insurance. Lewis said that too was an important piece to include. Lewis said many farmers understand the government is in tough financial times. "They're trying to balance a budget and everything else but there's other ways that they could find that money [other] than putting PST on some of our inputs because that's a pretty big issue," he said. Rick Toney, Chair of the Saskatchewan Cattlemen's Association, was equally impressed with the announcement by the premier. He said producers were quite concerned with staying competitive after the budget came down. "Crop insurance being cheaper in other segments of the country and that this was gonna put us out," he said. Toney said he hopes the provincial government will go a step farther and announce changes to the Saskatchewan Crop Insurance Program. The Provincial Agriculture Minister is scheduled to make an announcement Tuesday in Melville concerning the 2018 Crop Insurance program. "We've had lots of consultation with the government on crop insurance and hopefully they'll be listening again," Toney said. Source - http://www.northeastnow.com

27.02.2018

South Africa - How Western Cape farmers are being hit by the drought

Much has been written about the ongoing drought and critical water shortages in the city of Cape Town. Residents are bracing themselves for Day Zero – the moment at which most of the city’s domestic taps will run dry. But there’s also a great deal to worry about beyond the city’s limits and deeper into the surrounding farmlands of the Western Cape. Agriculture is an important part of the province’s socioeconomic fabric. The sector contributes 2% to South Africa’s national GDP, more than a fifth of which comes from the Western Cape. The province’s major commodities are horticulture – fruit, wine and vegetables. It also produces livestock, meat and dairy; and field crops like wheat, barley and canola. All need water – and lots of it. The allocation of water for irrigation varies depending on the catchment area in question. For example, a third of the water in the Western Cape Water Supply System – which also serves the city of Cape Town – goes to irrigation. But in an area south east of Cape Town known as the Breede Gouritz catchment area over 75% goes to irrigation. Agricultural water is allocated to individual farmers annually on the basis of crop type and area planted. It is given for use if and when the farmer chooses, during and after the growing season. There’s a real risk that the water shortage could see farmers’ yields decimated during this growing season which is from September to March for irrigated crops, and from from May to October for rainfed crops. The long term impact could also be disastrous. Consecutive loss-making years could bankrupt farmers leading to many abandoning agriculture entirely. And as research elsewhere has shown, it could lead to suicides. In periods of water stress, farmers need support, research assistance and empathy from governments and competing water users. Other countries provide examples of how this can be done. The Australian case Australia’s Millennium drought was categorised by low rainfall conditions in late 1996 and throughout 1997 in southern Australia. It included some of its largest cities and agricultural regions. The drought worsened through 2001 and 2002, followed by the years 2006 to 2008 which were the driest on record. Conditions remained hot and dry through to early 2010. The drought had a severe impact on irrigated agriculture. Farmers in the region relied solely on water from dams for agriculture and domestic consumption. The social impact on rural communities included unemployment and loss of household income, diminished local businesses and services and recreational opportunities as well social consequences. The drought also changed the way Australian agriculture treated its water resources, and those who depended on them. But there are some important differences between Australia and South Africa. One is that mechanisation levels are high in Australia and there’s very little unskilled labour. In South Africa there’s a very high dependence on unskilled labour. In 2017 there were 215 000 employees in the agriculture sector in the region, an estimated 75% were seasonal workers. Seasonal workers in South Africa usually settle in the production area, often in informal settlements. Their earnings result from work during the harvest period which stretches from between one month to three. In many cases the earning period must sustain them for the rest of the year. Whole families are dependent on this income and any job losses can have a severe impact including food insecurity, delinquency, alcohol and drug dependency and crime, as well as lack of self-esteem and domestic violence. Significant job losses in the agricultural sector could also lead to considerable social unrest, as happened in the past. Impact of the drought The drought has already begun to affect how farmers use water. Some of the behaviour changes are worrying. For example, farmers have started hoarding water when it’s available. Some aren’t in a position to store enough water and are withdrawing more than normal for this period (but still within their overall allocation) in the expectation that a post-harvest irrigation will not be available. But there have been some positive developments too. Some farmers with adequate and even spare water in their own dams have volunteered to donate this to the city. But the lack of rain has already led to lower crop production which has meant that fewer workers are needed. In many areas production volumes of wine and fruit are expected to fall by 10%-30%. During the Millennium drought, Australia’s agricultural production levels fell drastically. But it is worth noting that the industry in Australia made a full recovery during the relatively wet period after the drought. So far the damage to trees and vines in the Cape has been limited. While the horticulture industry will suffer economic losses, the industry will recover, if not immediately, then over a few seasons if water for irrigation is restored by next September. It is, however, too soon to say what the long term impact will be in terms of soil quality, farmer confidence and water allocations. Most domestic users are able to curtail their use of water without affecting their livelihood significantly. But the agricultural industry is completely dependent on an equitable share of this resource. A very fine equilibrium between accountable water allocation and responsible use of the limited resource is needed for the two competing sets of users. This requires empathy, negotiation, compromise and carefully considered trade-offs, all undertaken with Solomonic wisdom. Source - https://reliefweb.int

27.02.2018

USA - Nearly half of parched Kansas wheat crop struggling

A new government report estimates that nearly half of the winter wheat crop in Kansas is struggling for lack of adequate moisture. The National Agricultural Statistics Service reported Monday that 49 percent of the wheat is in poor to very poor condition. It rated the remaining crop as 39 percent fair, 11 percent good and 1 percent excellent. That assessment comes amid estimates that topsoil moisture supplies are running short to very short across 74 percent of Kansas. Subsoil moisture levels were faring only slightly better with 71 percent rated as short to very short. Source - https://www.sfchronicle.com

27.02.2018

India - Deposit farm compensation directly into bank accounts, insurance firms told

The Maharashtra government directed insurance companies to deposit the compensation given to farmers under the Prime Minister Crop Insurance Scheme directly into their bank accounts. The state's agricultural department told these companies to deposit the compensation, given to farmers as part of the 2017 kharif scheme for damage to crops like paddy, moong, urad and soyabean, within a week. Following a review by Agriculture Minister Pandurang Fundkar, the state's Additional Principal Secretary Vijay Kumar convened a meeting of the five insurance firms involved in the scheme. Kumar told the companies that the Aadhaar numbers of the farmers who had registered themselves with the state's 'Aaple Sarkar' portal were linked to their accounts. Officials said that of the 81 lakh farmers who are part of the 2017 kharif scheme, some eight lakh farmers have registered on the government's portal. The meeting was attended by representatives of the Oriental Insurance, United India Insurance, Agriculture Insurance Company of India, National Insurance Company and Reliance General, said officials. Source - http://www.moneycontrol.com

27.02.2018

Australian and NZ authorities on alert for new pest

Australian and New Zealand authorities are on heightened alert for a new pest in the brown marmorated stink bug (BMSB) following an increase in detections in both countries. A major threat to the horticulture sectors in both countries, BMSB is native to Japan, Korea, Taiwan and China. In 1998, the bug was introduced to the United States where it is now become a major concern in orchards with some farmers reporting up to 90% in crop damage. It has now spread to Europe as well. BMSB feeds on a range of fruit and vegetables including grapes, apricots, peaches, apples, cherries, raspberries, peppers, tomatoes, corn and pears, using its proboscis to pierce the host fruit. In Australia and New Zealand, there are less destructive native species of stink bugs. Australia's Quarantine and Inspection Service found live BMSB in containerised electrical goods in December 2017 and a mix of dead and live bugs in containerised bricks mid-January - both originating from Italy. Very recently live and dead BMSB were found in a consignment of imported goods in Perth, Western Australia New Zealand biosecurity detected the pest in three recent Japanese car shipments. Based on the latest detections, new inspection regimes on all used vehicles being imported from Japan will undergo inspection and cleaning at an MPI-approved facility prior to export. MPI Biosecurity and Environment Manager, Paul Hallet, said in a statement any used machinery or other types of used vehicles from Japan will require certification proving it has undergone a cleaning regime by an appropriate provider. "Nearly 95% of used vehicles from Japan already pass through approved facilities that are designed to eliminate the risk of biosecurity threats like seeds and hitch-hiking organisms such as gypsy moth." "The requirement will now be compulsory for all imports. The changes will significantly reduce the chance of transporting dirty vehicles and machinery that could contaminate other cargo." "The move is a result of an unprecedented spike in the number of stink bugs arriving at the border from Japan in bulk carriers." Three bulk carriers were directed to leave New Zealand recently due to excessive contamination. Australia has now put strict additional treatment protocols in place for containerised goods from Italy including heat and methyl bromide. These protocols will be reviewed in April 2018. The New South Wales Department of Primary Industry issued an advisory stating BMSB is unlikely to be imported on fresh produce due to its trying to hide when being disturbed during harvest and packing operations. Source - http://www.freshplaza.com

27.02.2018

New Zealand - More than 800 damage claims received so far by rural insurer

Insurance claims have started rolling in as farmers count the costs of ex-Cyclone Gita striking New Zealand. Rural insurer FMG has confirmed 827 claims so far, mostly for wind damage to houses, dairy, hay and implement sheds  from lower Auckland to Southland, but has yet to release the total cost. FMG Taranaki area manager Jason Rolfe said it would likely take several weeks to get a full picture of the damage as farmers assessed their properties and put claims in. "From the claims we're receiving it looks like coastal and South Taranaki, along with parts of Nelson, Tasman and the West Coast have been the worst hit. On-going power outages in Taranaki have made recovery more challenging in the region." He said landowners who had suffered damage should let their insurer know as early as possible. The storm caused states of emergency to be declared in regions around the country as it lashed large parts of New Zealand last week. Federated Farmers President Katie Milne said there was damage all around the West Coast on different farms, ranging from shed roofs being blown off, trees knocked over, power cuts and damage to fences. "There will be some insurance claims up and down the [West] Coast for sure with all of the sheds and bits and pieces [damaged]." As far as Milne was aware, no farmers had suffered stock losses, and any that did occur would be minimal. There were few farms with young stock at this time of the year, and farmers were given plenty of warning that the storm was coming, she said. "People in Canterbury were tying their irrigators down, which was good practice to do when you know you're in for a hiding." The storm caused disruption for Fonterra with the dairy co-operative unable to collect milk from 15 farms in Taranaki and 40 at the top of the South Island. No milk had been dumped because most of the affected farmers had been able to store it in their vats. In Golden Bay the storm damage blocked off Takaka Hill road for several days before being partially re-opened on February 25. For Riwaka kiwifruit, apple and cherry growers, Thomas Bros', the damage caused by the storm was the worst they had seen. Kiwifruit manager Steve Thomas said neither he, his father or his uncle had ever seen a storm cause as much destruction to their family business. Jordan Creek, which ran through the property could not handle the downpour and flooded, covering the area in thick layers of mud, silt and debris. Zespri chief grower and alliances officer Dave Courtney​ said they were aware of some isolated cases of orchard flooding around Riwaka, with possible damage to low-hanging fruit, and a packhouse in the area has also been affected by flooding. "Zespri is working with growers to provide support as needed. The Upper South Island supplies around 4 per cent of Zespri's SunGold volume." Horticulture New Zealand President Julian Rayne​, who is an orchardist in Nelson, said the region's horticulturalists were mostly unaffected by the weather. "Things will be a bit soggy, but it's drying out. Vegetables will be fine so long as the water drains off today. Otherwise, there will be plant deaths, and this leads to shortages. "Apple picking is halted for a couple of days to let the trees dry out, but the apples won't be affected." New Zealand Hops reported that apart from some localised flooding the crop, which was grown in the Nelson area, came through unscathed. Source - https://www.stuff.co.nz

27.02.2018

USA - Federal Budget changes could hit crop insurers’ underwriting profits

The proposed Federal Budget could negatively impact the crop insurance industry, with about $26 billion of the proposed savings affecting crop insurers through capped underwriting profits along with reduced eligibility and lower subsidies, according to Keefe, Bruyette & Woods. The revised budget hopes to make  about $47 billion of Farm Bill-related savings between 2019 and 2028. It would impact the insurance industry with reduced subsidies, lowering the average subsidy to 48% of premiums from 62% and cut the maximum underwriting profit margin to 12% from its current 14.5%. KBW estimates this “would absorb over 17% of profits during good years, without necessarily lowering losses during tougher years.” During the 20 years between 1997 and 2016, the industry reported about $4.5 billion of crop underwriting profits, KBW said that if the profit cap had been in place during this period, it would have lowered cumulative profits by over 46%. However, KWB said that since not all of the industry’s Multiple Peril Crop premium stems from government-subsidized products this analysis overstates the impact of a potential margin cap. Whether or not the budget will pass as proposed remains to be seen, however, it posts a pending risk to crop insurers’ premium volumes and expected underwriting profits. The preliminary Federal Budget proposal would further eliminate premium subsidies, commodity payments, and conservation programme eligibility for farmers with Adjusted Gross Incomes of over $500,000, and although these larger farmers only make up an estimated 2.1% of the total,  they likely account for a significant percentage of crop insurance premiums. Further changes would include: “tightening payment limits for farmers and eliminating payment limit loopholes”, with proposed commodity support payment limits of $125,000 per producer (or $250,000 per married couple), along with eliminating “special treatment” for peanut farmers, who can qualify for twice when they also grow other crops. “Eliminating funding for those programs with limited outcomes,” focusing on ensuring that participants are eligible for Conservation Stewardship Program contracts, and that payments are not excessive reviewed as part of an audit. And “Eliminating funding for the Regional Conservation Partnership Program”, and “Eliminating programs for which there is no Federal purpose”, such as commodity-specific support programs and mandatory livestock feed assistance,” KBW explained. While it’s still not clear whether these changes will be approved, KBW advised insurers to watch the proposal, pointing to last December’s tax reform which included previously unsuccessful modifications to internal offshore cessions, as an example of the plausible extent of legislation change within the current U.S. regime. Source - https://www.reinsurancene.ws

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