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16.06.2017

Canada - Timely rains for some, but hail for others

Some Manitoba farmers got the rain they were praying for last weekend, some didn’t get enough and a few unfortunately also received hail. The good news is a more general rain was in the forecast at press time June 12 and the hail, although devastating for a few farmers, was believed to be isolated. “We’ve heard from about a dozen producers about hail (June 9),” David Koroscil, Manitoba Agricultural Services Corporation’s (MASC) manager of insurance projects and sales said in an interview Monday morning. “It’s too early to tell the extent of the damage. So far it seems fairly isolated.” At least one farmer in the Pilot Mound-Crystal City area reported on social media that some of his young crops appeared to be destroyed by hail the evening of June 9. There were also social media reports of imploded, empty grain bins in southwestern Manitoba and toppled hopper bottom bins near Langdon, North Dakota. MASC must inspect hail-damaged fields before farmers rip them up. Depending on the extent of the damage and the crop, some can recover from hail when hit early in the growing season, Koroscil said. Canola and cereal crops are quite resilient, he said. Soybeans can recover sometimes too if the hail hasn’t cut the plant off below its growing point. Another complicating factor is the time of year. Manitoba farmers have until June 20 to seed (and reseed) certain crops, including wheat, and still be eligible for full or reduced (depending on the crop) crop insurance coverage. Farmers and MASC might have differing views on whether to leave a damaged crop or reseed. The Canola Council of Canada’s website says farmers should aim for seven plants per square foot and warns yields can drop with five or less plants per square foot. However, the council also notes canola branches out and compensates for fewer plants. But that can also result in uneven crop maturity. As is common with thunderstorms, rainfall amounts varied widely last weekend. Several people in the Miami area recorded 30 mm June 9, but Manitoba Agriculture’s Somerset station received 50 mm. Areas to the west, south and east received less and in some cases no rain at all over the weekend. Weekly accumulated rainfall for Manitoba – June 5-11, 2017photo: WeatherFarm.com Much of agro-Manitoba was expected to get 25 mm or more rain June 13 to June 15, with the bulk of it expected Tuesday and Wednesday, said Bruce Burnett, Glacier FarmMedia’s director of Markets & Weather. “The rain is looking pretty general for most of southern Manitoba,” he said in an interview June 12. The weather models were showing a slow-moving low coming up from the Idaho-Montana border. The result should be a slower, more general rain falling over several days. Source - https://www.manitobacooperator.ca

16.06.2017

USA - Wind damages local crops

Wednesday night's storm created a big headache for local farmers, who've already had a tough spring. The northern part of Pike county getting hit the hardest. Several acres of corn was knocked over by 60 mile per hour winds Wednesday night. "We've got a lot of corn that's lodged really bad, leaning, some of it's flat on the ground," farmer JRyan Norton said. "We've actually got some corn that green snapped, so the stalk actually snapped so that will be a loss." Norton farms 10,000 acres near Hull, Illinois and he said most of his fields have wind damaged corn, which means yields are going to take a hit. "We had a similar wind storm like this in June last year," Norton said. "I was about a 75 bushel yield hit per acre," Norton said. "We're hoping this year that we won't have near the lost, but still, it's going to affect it." Farmers said when corn that has been blown over grows back up, that could lead to added yield loss at harvest time. "So now it's going to be all over the place instead of nice straight rows," Norton added. "We're going to have stalks and ears everywhere. It'll be a challenge at harvest, that will be the biggest concern." It's the same story for farmer Bryce Bushmeyer. "It's a terrible feeling," Bushmeyer said. "But as the days go on and the crop stands back up you start to feel a little better." The Pike County Farm Bureau said the northwestern part of the county was hit the hardest, but farmers have to wait and see how bad the damage is before crop insurance kicks in. "It's definitely something we will be monitoring during throughout the growing season," Bushmeyer said. "When harvest time comes, we'll see where we are at that point in time." Norton said they hope to get out in the field in the next few days to see if any stalks are broken. If they are, that plant won't grow and will be a complete loss. Source - http://www.wgem.com

15.06.2017

India - Waiving farm loans is not only bad for the economy but also detrimental to interests of the farmer

Farmers, from Punjab in the north to Tamil Nadu in the south, have started agitations demanding farm loans be waived. The Uttar Pradesh and Maharashtra governments have already considered it politically expedient to write them off. Some other states may follow the suit. However, such decisions are as misguided as they are misleading. Nonetheless, it will be a mistake to treat the agitations as a domino effect of the UP government’s decision to waive loans worth Rs 36,359 crore. It is a manifestation of an agrarian crisis that has been in the offing for several years now. After two years of drought-like conditions in Maharashtra and several other parts of the country, the monsoon last year was normal. Farmers responded to the rain and official announcements by increasing the sowing of lentils, oil seeds and coarse cereal, which traditionally used to be in short supply. However, the governments did not keep their end of the bargain. Neither procurement facilities nor remunerative prices were provided as promised. On top of that, due to the cyclical nature of global food prices, imports have become cheap. Consequently, the wholesale prices of lentils have declined drastically. For example, price of tur has declined from Rs 110 per kg in 2015 to less than Rs 40 per kg in 2016. Mandi prices of fruits and vegetables crashed in the aftermath of demonetisation. Farmers could not sell tomatoes even at Rs 1 a kg. More recently, the bountiful production of onions and potatoes has sent their prices literally through the floor. All this has had some dampening effect on the consumer price index (CPI), even though gains to the consumer have been modest due to large number of intermediaries and wastage. Farm Inputs In contrast, the prices of farm inputs have increased sharply. The official estimates reported in this paper (‘Farmers’ ire not about loans alone’, goo.gl/iWiqZu, June 10) suggest that for several widely cultivated crops farmers are suffering substantial losses. In Madhya Pradesh, wheat has fetched a meagre profit of just 2% while paddy inflicted a loss of 15%. These numbers are not surprising. During the last three years, the minimum support prices (MSP) for most crops have been raised negligibly, especially when compared to the previous three years (see table). The combination of high costs and low MSP have eroded the viability of agriculture. An ongoing study shows that in Haryana, the average rent (price demanded on leased out land) has decreased from about Rs 37,000 per acre per year in 2014 to Rs 24,000 this year. The vagaries of weather and volatility in paddy prices have made the situation worse. Many panchayats failed to rent out their land, even after several attempts. The crisis in agriculture has caused distress to the entire rural economy. However, the waiving of farm loans is not only bad for the economy but is also detrimental to the long-term interests of the farmer. It incentivises even debtors capable of repaying loans to default. Unsurprisingly, the recent waiver announced by the Maharashtra government is expected to cost Rs 30,500 crore, almost four times the loans waived in the 2008-09 scheme of the UPA government. Waiving farm loans was a bad decision then. It is a bad idea even now. Just like the 2008-09 scheme, the latest round cannot improve conditions of farmers. However, it will eat into investments in infrastructure and public goods. Provide Credit If the Centre is serious about doubling farm income, it should focus on increasing the availability of institutional credit in rural areas. According to the latest RBI data, the average value of credit advanced by scheduled commercial banks in rural areas is only Rs 1.28 lakh per borrower. The average credit advanced to small borrowers — small and marginal farmers, artisans etc — is a mere Rs 49,681. According to recent reports, the rate of growth for lending to agriculture has come down to 2.5%. In such a scenario, small and marginal farmers are forced to raise 40-60% of their debt from non-institutional lenders at usurious rates. Saving them from the clutches of the moneylender should be a high priority. Since most farmers have bank accounts now, such an objective is attainable. Farming can become viable only by supplementing it with activities like animal husbandry. Besides, the Pradhan Mantri Fasal Bima Yojana (crop insurance scheme) should extend insurance coverage to partially damaged crops. It should target at the farm-household level, and extend the time horizon of coverage up to five years so as to cover both normal and bad years. Also, there is a need to increase productivity of agriculture by improving irrigation facilities, water harvesting and soil conservation technologies. Finally, it is equally important to protect consumers’ interests while making farming remunerative. This requires amending the Agricultural Produce Market Committee Act and augmenting storage facilities to reduce wastage of fruits and vegetables. These last two issues fall under the domain of the states. But the ruling coalition at the Centre also rules several key states, making it very much viable. Source - http://blogs.economictimes.indiatimes.com

15.06.2017

Europe expects dramatic apple season: an overview

The extreme weather conditions in April and May led to considerable losses in the harvest of many European crops. There are many estimations and predictions, but there is little certainty. The German institute AMI provided figures and estimated the total European crop this season to be lower than 10 million tons. Last year the harvest 2016/2017 was estimated at 12 million ton, so that means a decline of 20%. Belgium - Things not looking rosy  Kris continues: "For Belgium, things are not looking rosy in any case. We will be able to harvest only up to 20% of the Jonagold. Other varieties, including the Golden and Gala, have done better and the percentage will reach about 50%. Overall, it is expected that between 60 and 70% will be harvested, but it is not certain that the quality will always be good. Both the Doyenné and Durondeau are recording severe drops, with Class II often no longer sold. For the QTee, it seems to be going okay. Of course, we didn't know how the frost would affect this new variety. We have had a pretty good harvest of QTee, of which 70 to 80% are Class I fruit," he concludes. AMI: Fewer than 10 million tonnes The German Institute AMI is offering various figures and predicts that the total European harvest this season will fall below 10 million tonnes. The estimated loss for Poland is 50 to 60%; for Belgium, 65 to 70%; for the Netherlands, 30 to 35%; for Austria, 45 to 50%; for Italy, 20 to 25%, and even in the Balkans the losses will oscillate between 50% and 80%. Only Spain and the UK recorded no night frosts. In Lake Constance, prospects point to a 70% drop; however, in the north of Germany, there are areas which have had plenty of irrigation and where only a 10% loss is expected. Prognosfruit will offer more accurate figures in early August. Overview of losses and forecasts WAPA - June 2017 Poland The forecasts point to a situation comparable to that of 2007, which was a very difficult year. The first cold wave hit the Lublin area. Estimated production losses for apples and pears oscillate between 15 and 20% at the moment. The second frost period hit a much larger area, including the Grojec region. At that moment, there were a lot of trees in bloom, so the damage was estimated at 50 to 60%. The Jonagold and Idared are the most affected varieties. Small calibres are expected. For other fruits, such as cherries and plums, the damage is even more dramatic, with losses reaching up to 90%. Italy The regions of Lombardia and Piedmont are probably the most affected by the frost. For many growers, the losses range between 40 and 50%. In Trento, there was also significant damage, but it varied depending on the valley. South Tyrol was generally less affected. This was due, among other things, to the good anti-frost systems that were in place. Emilia Romagna was also not heavily affected. The damage to Italian apples is estimated at between 20 and 25%. France There were several night frosts between 20 and 28 April. In the south west and Aquitaine, the impact was small and limited to about 5%. In Central France (Limousin), the impact oscillates between 5 and 10%. In the Rhone and Alps and the Alsace regions, the situation is tougher, with damage ranging from 15 to 50%, depending on the orchard. The total decrease in production in France will amount to around 10%. Moreover, about 10% will be qualitatively not as good. Germany The damage in the north and east of Germany was not too bad, as the frost is only expected to have affected about 10% of the harvest. In Rheinland, however, bigger losses, of up to 50%, have been recorded. The situation in southern Germany was also difficult, especially in the area of Kostanz, where losses reach up to 70%. Belgium The apple production has been greatly affected, it is estimated that Belgian apple breeders will harvest 65 to 70% less this season. Of the races Jonagold and Jonagored, little is left. The damage to Gala and Golden was not too bad in comparison to the aforementioned varieties. The pear harvest is estimated at 300,000 tonnes and that of apples to between 75 and 85,000 tonnes. For pears, the situation is less dramatic, but a reduction of between 15 and 20% is expected.   Belgium The apple production has been greatly affected; it is estimated that Belgian apple growers will harvest 65 to 70% less this season. There is little left of the Jonagold and Jonagored varieties. The damage to Gala and Golden fell in comparison to the aforementioned varieties. The pear harvest is estimated at 300,000 tonnes and appeals 75 to 85,000 tons. In pears it is less dramatic, but a reduction of 15 to 20% is expected. The Netherlands Compared to Belgium, the situation in the Netherlands is not too bad. For apples, the harvest volume is expected to fall by between 30 and 35%, while for pears the drop oscillates between 15% and 20%. Hungary The north east of the country, the most important area when it comes to apple production, has been the most hit by frost damage. In total, a loss of about 30% is estimated. The apple harvest is expected to amount to around 600,000 tonnes. Czech Republic This country was hit twice by night frosts. There had been potential to harvest 167,000 tonnes this season, but this has now been reduced to an estimate of 125,000 tonnes. The most affected areas were those in the south east of the country. The most severe damage in the Czech Republic was recorded by apricots, pears and cherries.   Slovenia Slovenia already recorded big losses last year, and things are also looking bad this time. The cold has caused production losses of around 80%, with some orchards having lost up to 100% of the fruit. Austria Austria had already faced difficulties last season. Back then, a record low production, totalling 40,000 tonnes, was harvested, compared to the average 180,000 tonnes. This year, Austria has been hit again. The worst damage has been recorded in the west of the country. Damage is estimated at about 80%. In the main production region, Styria, the harvest losses are estimated at 50%.   Ukraine In Ukraine, temperatures dropped as low as -6 degrees Celsius. The impact varied by region. In the west, there was little damage, while the Vinnytsia region was severely affected. It is expected that 40% of the harvest will be lost. In Cherkasy and Mukolaiv, the percentages are even higher. The total volume loss could range from 50 to 60% for apples, and the same for pears. The apple harvest will amount to about 600,000 tonnes and the pear harvest will reach around 80,000 tonnes. Source - http://www.freshplaza.com

15.06.2017

Italy - Yellow photoselective nets work well with golden kiwis

Iridium photoselective nets were rather popular during the latest edition of Romagna in Campo. A few coloured nets were set up with the cooperation Consorzio Agrario Adriatico and total coverage techniques were illustrated. Agrintech experts (Michele Bravetti, Bruno Gagliardo, Stefano Vocca, Alessandro Gagliardo and Andrea Rossi from Consorzio Agrario Adriatico)explained the benefits of using yellow nets on golden kiwi orchards. "Yellow Iridium nets enable higher photosynthesis levels compared to traditional nets, so grades are bigger, dry matter content is higher, the flesh is firmer and the colour is deeper. Additional tests are being carried out by the University of Turin to assess their protection against the brown marmorated stink bug, as the new 2.4x4.8 millimetre net has been proven to effectively block it. "In addition, the same type works well against the wind and reduces bud breakage and rubbing." Despite their light colour, yellow nets last for a long time thanks to their components and small holes. They can filter 20% of sunlight, thus reducing fruit damage. Source - http://www.freshplaza.com

15.06.2017

USA - 3 Bacon County farmers to pay federal crop insurance program $675,000 in false claims settlement

A Bacon County farmer and his two sons-in-law have agreed to pay the federal government $675,000 to settle a suit accusing them of making false crop insurance claims. The largest portion of the pay back, will come from Julian Rigby who will pay $350,000 personally and through his business, Alma Brightleaf Blueberry Farms Inc. His son-in-law Jasper Allen will pay $300,000 and his son-in-law Benjamin Swain will pay $25,000 to settle of their roles in hiding Rigby’s role in farms they claimed to operate and in collecting crop insurance for him. The U.S. Attorney’s Office said it is the first recovery in the Southern District of Georgia under the federal False Claims Act of payments through the U.S. Department of Agriculture’s crop insurance program. In its complaint, the federal government asserted that the three men ran a scheme in which Allen and Swain submitted claims for losses under the federal crop insurance program. Under the regulations governing the program, only landlords, owner-operators or tenants are eligible for crop insurance coverage. During the crop years from 2008 through 2010, the two men made claims in which they claimed 100 percent of the losses. The complaint asserts the two men actually had no financial risk because Rigby paid them salaries while he provided the land and equipment, paid all the workers, provided a barn to cure tobacco, financed all purchases and made all the decisions. The complaint notes that in 2008, 2009 and 2010, farm expenses of more than $1 million were billed to Rigby or to Alma Bright Leaf. The complaint says the reason Swain and Allen were falsely held out as the farmers was to collect more money. Between 1995 and 2008, Rigby filed numerous claims and collected more than $2.9 million in crop insurance payments. Because of that high volume of claims, Rigby’s eligibility was lower than that of Swain and Allen who were given new producer status, the complaint says. Under the scenario laid out in the complaint, nothing in Rigby’s farming operation changed except the substituting of Allen’s and Swain’s names for his. It also said Rigby obtained “paper,” or false bills of sale, from a tobacco buyer to justify the claims that Swain and Allen submitted. “The bills of sale were fabricated,” the complaint says, “to whatever poundage Rigby told [the buyer} he needed,” the complaint said. As a result of the scheme, the federal crop insurance program issued checks ranging from $74,121 to $262,105 to Swain and Allen who passed the money along to Rigby, the complaint said. The three men were also accused of failing to return some overpayment from the insurance program. Under the terms of the settlement, Rigby must pay $25,000 and his company $125,000 in seven days. He also agreed to repay the crop insurance program $40,000 a year for the next five years. Source - http://jacksonville.com

15.06.2017

USA - Local farmer experiences crop damage due to hail

Folks in our area experienced severe storms on Tuesday night. John Dolincek, a Lawrence-area farmer experienced crop damage. "And I thought boy it's raining really hard and my son says no dad that's hail,” Dolincek said. Dolincek said as a farmer you can’t really do anything to get ready for this. "I'm not sure if there is anything you can do to prepare for it. I guess you just try to do all the things that you can agronomical as far as planting the crop and then hopefully you're protected with crop insurance,” Dolincek said. A local extension educator, Jenny Rees, spent part of the day with Dolincek checking to see if even some soybean plants were still alive. "The biggest piece of advice we give that it’s just going to take time for those plants to regrow. We say it looks really bad right after the storm but for about 5-7 days you’ll start to see regrowth. Actually what helped us today was the sun and warm weather,” Rees said. Rees said from the plants she has seen, there is potential for regrowth, but some are already bruised. "That's not accounted for in the crop insurance information and even in our hail information so unfortunately for now that damage down the road - when we get wind and so forth - those plants may break off later on in the season,” Rees said. Dolincek said there is always next year and with having damaged crops you just have to wait to see what happens. "You hope that you don't have to go out here and replant or anything like that. I guess I’m going to do the wait and see, see what plants do survive and what kind of a stand I have,” Dolincek said. If you have experienced crop damage, you can contact your local extension office. Source - http://nebraska.tv

14.06.2017

Ukraine - Cold weather stunted tomato ripening

Tomato exports are down in Ukraine due to cold weather slowing down the ripening process in greenhouses. Production is down so much that there are reports that there is also not enough supply to meet domestic demand. From January 1 to May 1, 2017, Ukraine significantly reduced not only imports, but the reduction also concerned the export of tomatoes. "During the first 4 months of this year, import volumes totalled around 6,500 tons, which saw a decrease of 150% when compared to the same period last year. Fresh tomato exports were down by 30% compared to 2016, with totals coming in around 1,500 tons." shared Tetiana Getman from Info-Shuvar. What might be worth mentioning is that Ukraine saw a huge increase in tomato exports in 2016 which had been an increase of 65% compared with the figures in 2015. There is a silver lining for Ukrainian producers, who are reporting good prices due to the lack of exports. As of June 12, 2017, in data supplied by Info-Shuvar, greenhouse tomatoes are currently offered for €0.69-1.20 / kg, compared to €0.62-0.65 EUR /kg in mid June of 2016. This means that tomato prices are up this year by 30%. Source - http://www.freshplaza.com

14.06.2017

European vegetable crops affected by dry weather conditions

European processors of canned, frozen and dehydrated vegetables in major producing countries are very concerned about the impact of warm and dry weather conditions over this year’s spring and summer crops. In Spain, producers highlighted that the crops were severely affected by the scarce or nearly nonexistent precipitation, which also caused the volume of stored water to be well below the average of last years: the hydraulic reserves in the 16 basins of Spain stand at 59.4% of their capacity, causing significant water restrictions. The lack of rain combined with high temperatures during winter and spring were detrimental for crops in many parts of Europe, affecting important production areas for vegetables in Belgium and in Italy, as well as in some French regions. The exceptional drought has already triggered some national authorities to implement measures to limit the supply of water. Although it is too premature to assess and predict further the overall losses of summer vegetable crops, the European processors are greatly concerned by the current meteorological conditions and the weather forecast for the coming period, as the impact could be profound. Source - http://www.freshplaza.com

14.06.2017

India - Ryots told to take crop insurance cover

The District Agriculture Department urged farmers to get insurance coverage for their crops under the Pradhan Manthri Fazal Bheema Yojana (PMFBY). The PMFBY insurance coverage is applicable for paddy, maize and cotton crops for the farmers who avail bank loans and others also. The farmers have to pay a premium of ₹500 per acre for maize for getting insurance coverage of ₹25,000 per acre and premium of ₹ 580 per acre for paddy crop for insurance coverage of ₹ 29,000 per acre. Premium for cotton is ₹1650 per acre for insurance coverage of ₹33,000 per acre. The last date for payment of premium amount for cotton crop is July 15 and for the maize crop August 31 and paddy crop July 31. The farmers were asked to approach the mandal agricultural officers and the Cholamandalam insurance agents, according to an official release here on Tuesday. Source - http://www.thehindu.com

14.06.2017

Spain - Early onions to generate losses in Antequera[:ru]Spain: Early onions to generate losses in Antequera

The early onion harvest is currently in full swing in the region of Antequera. This is a campaign that, according to the manager of the cooperative Horticultores El Torcal, Juan Antonio Romero, will be the worst of the last 10 years in this area of ​​the interior of the province of Malaga. The producers will market about 4 million kilos; a similar figure to that recorded in recent years; however, the market price is expected to be well below the average recorded in previous seasons. Romero explains that the harvest will not allow growers in the region of Antequera to cover their production costs, so that the campaign, which will end on 20 June, will certainly generate losses. In this sense, the head of the entity argues that producers usually plan their crops for four or five years, so that the good results of one year can compensate for the bad ones of another. The prospects are better for the late onion season, whose harvest will kick off at the end of August and will last until approximately 15 October. The total production of both campaigns will amount to approximately 11 million kilos, with close to 250 hectares cultivated. Of the total onion volume harvested, about 30 percent is sorted and packed in the facilities of the aforementioned Antequera cooperative; the rest of the harvest is sold directly at origin to customers who pack the product in a similar manner as Horticultores El Torcal. Source - http://www.freshplaza.com

14.06.2017

India - Crop insurance sees 288% growth in business in FY17

The crop insurance segment, driven by the Pradhan Mantri Fasal Bima Yojana saw an almost 288 percent growth in business for the financial year 2016-17. The segment saw premiums of Rs 20,611.42 crore in FY17 as compared to Rs 5,310.06 crore collected In FY16. Data from the General Insurance Council showed that compared to a market share of 5.5 percent in FY16, it grew to 16.1 percent in FY17. The private sector players collected Rs 9,864.77 crore of premium in the crop segment while public sector insurers collected Rs 3,682.52 crore of premium. Agriculture Insurance Corporation of India (AIC) collected Rs 7,064.13 crore in FY17. Currently, motor insurance is the largest segment of business for general insurers. This is now followed by health insurance and crop insurance. This is expected to get a further impetus in the current financial year. The Pradhan Mantri Fasal Bima Yojana (PMFBY) will have an increased presence since the government has allocated Rs 9000 crore for the scheme. In 2016-17, they were allocated Rs 5,500 crore. During his budget speech, finance minister Arun Jaitley said that the coverage under the scheme will be increased to 50 percent of cropped area in 2018-19. “The Fasal Bima Yojana launched by our Government is a major step in this direction. The coverage of this scheme will be increased from 30 percent of cropped area in 2016-17 to 40 percent in 2017-18 and 50 percent in 2018-19,” said Jaitley in the budget speech. The Budget provision of Rs 5,500 crore for this Yojana in budget estimate 2016-17 was increased to Rs 13,240 crore in revised estimate to 2016-17 to settle the arrear claims. The sum insured under this Yojana has more than doubled from Rs 69,000 crore in Kharif 2015 to Rs 1,41,625 crore in Kharif 2016. Also, farmers have been paid Rs 13,240 crore as arrears in 2016-17. More than 1 million farmers have been given cover under this scheme, making India the third largest agriculture insurance market in the world after US and China. The scheme, approved by the Cabinet in January 2016, has a uniform premium of two percent to be paid by farmers for all kharif crops and 1.5 percent for all rabi crops. For commercial and horticultural crops, the farmers’ premium is five percent. The rest of the premium is paid by the government. Source - http://www.moneycontrol.com

14.06.2017

USA - Crop consultants step in when severe weather damages crops

It's a risk all farmers know comes with the job: severe weather harming their crops. Some farmers in our viewing area, especially north of Lubbock, are surveying the damage as hail pummeled their cotton crop on Monday night, just as the growing season is getting underway. When any severe weather damages a farmer's yield, that's when a crop consultant steps in to try and help them figure out the next steps. "We'll step into the field and help evaluate the stand to see if the stand is going to be profitable or if they need to turn it into insurance and take any steps from there. What to do and how to manage that crop," said Blayne Reed, an IPM agent with Texas A&M AgriLife Extension. He says cotton plants are more vulnerable to the weather in our area than other crops. "It has multiple growing points. They are exposed really early and very susceptible to damage to begin with," Reed said. Reed says hail damage on young cotton plants can look severe from the surface, but there could be hope. "One of the key things we need to do in cotton, is to wait two, three, maybe four days and not assess the damage right behind the hail; because every plant is going to look dead. But if we give those already established root zones a chance to come back and find those growing points, and we can see them on cotton and make the determination if that's a living plant or not," Reed said. Reed showed us how he and his team go about assessing the damage and deciding whether or not a farmer's crop would still make a profit. "First we need to make sure we have enough viable plants per acre, and how myself and my crew do that when we're consulting in the fields, is we'll actually measure off a thousandth of an acre at several points in the field, we'll walk across these fields...count how many plants, and multiply that and take an average," Reed said. While no farmer wishes for hail damage, Reed says this timing is better than when the growing season progresses. "This early in the growing season, they still have options to go with corn or sorghum or maybe wheat, or to choose layout and take their insurance option. Later in the growing season they are taking a direct hit to yield that is not recoverable in really any major way," Reed said. The deadline for planting cotton to be insured for crop insurance was June 5 in Lubbock and Hale counties, and Reed says it takes about 15 days before an insurance agent can come out and evaluate the damage. Source - http://www.kcbd.com

13.06.2017

Africa - Digital infrastructure – cutting out re/insurance middle men for faster development

Digital technologies and development finance are swiftly building re/insurance solutions in countries most vulnerable to climate change, and cutting out the need for reliance on non-existent or flailing public-private partnerships, said Lars Thunell, chairman of African Risk Capacity Insurance, at the African Development Bank meetings in Ahmedabad. African map and flagsDeveloping countries often lack public-private partnership (PPP) disaster resilience solutions, but as digital re/insurance distribution methods become increasingly widespread, they’re eliminating the need for these middle men structures. Speaking to Development Finance, Thunell said; “I think a lot of countries just don’t have the regulatory frameworks for PPP. Then you need to coordinate all the ministries and the private sector, and account for cultural differences that will arise also. “Everyone always thinks the other side is going to take all the risks. The good news for Africa right now though is the technological revolution taking place. “You’re going to find much more of a distributed system where there is Internet for all and farmers getting market prices via their phones. “I think that, to a large extent, we’re going to move away from the big power projects and into distributed solar-powered mini grids. That way, you don’t really need government. You can just have entrepreneurs.” And as demand for cover gradually increases, the market could move towards CAT bond purchase: “Once our volumes are bigger, we’ll access the markets directly through a CAT bond, which is an instrument widely used already. As we move further away from singular year insurance to several year insurance, which I think will happen, then CAT bonds will be more important.” Thunell said awareness campaigns for disaster resilience solutions were helping to increase re/insurance penetration: “We work towards this at three levels. One is public awareness, social media, what have you. The second is working within the African Union, of which the ARC is after all an entity. Thirdly, we talk to the various countries we work with about the benefits of insurance.” “We started with countries in West Africa. This year we’re adding Chad, and building up more trust between ourselves and African states. However, I think that if you are a finance minister with already tight budgets, paying premiums is tough. That’s why we’re working now with the African Union and the African Development Bank, from whom we’re trying to get at least part of the premium funded in order to taper it off over time.” However, even as digital technologies and awareness campaigns improve disaster resilience levels – without the funds to purchase cover on a large-scale – the question of the sagging bottom line remains an issue for resilience building in emerging markets. This is where development finance institutions come into play; “We’re having similar discussions to those we’ve had with AfDB with DfID and KfW. Together DfID and KfW, on behalf of BMZ, have committed about US$200 million and paid in about US$100 million. “That is a capital loan of 20 years without interest, which we will have to pay back in 20 years. Part of the loan is a gift or grant, the other part is a true loan. We’re also looking into working with the World Food Programme. “The idea they have is to double up on the insurance taken out by another party, so they get twice as much insurance for the same amount of money. That’s a programme we call ‘Replica’, since it’s about replicating the insurance.” Demonstrating how re/insurance programmes have already proven their worth, with knock-on effects rippling out not only within local economies, but across the global economy, Thunell said; “A couple of years ago in West Africa we helped around 1.3 million people by paying out for disaster relief in the form of seeds for farmers, as well as food for livestocks. “We’ve since done a study on the people who received those benefits and we found that this helped 40 percent of the farmers to stay on their farm. “One of the worst things that happens after a natural disaster is that farmers are forced to leave their farms and migrate to the city, which goes straight to the cause of the refugee problem. “This was an effective way of allowing people to stay though being in a time of need.” And as these markets grow, large-scale demand for lines of business such as crop insurance and cyber will emerge, and in turn, fuel demand for reinsurance risk transfer. According to a recent report by EY, the average real global re/insurance industry growth rate will increase by 3.7% over 2016 to 2018 – and this growth is being led primarily by booming developing and emerging markets. Source - https://www.reinsurancene.ws/

13.06.2017

USA - Trump's proposed cuts to crop insurance are sore spot for Oklahoma farmers

David Gammill owns a 1,300-acre wheat farm in Grandfield, in the southwest part of the state, where he has been a farmer for more than 45 years. Gammill also sells crop insurance, a godsend for many farmers and ranchers in a state familiar with natural disasters. There was this year's wildfire that set more than 318,025 acres ablaze in northwest Oklahoma. There was the five-year drought, which began in 2010 and peaked in 2014, the lowest wheat producing year since 1957. When the drought was over, Gammill and other farmers throughout southwestern Oklahoma suffered losses from heavy rain and flooding. Yet Washington, D.C., was quiet — no ad hoc federal emergency disaster relief was cobbled together as was the case in the past. Not because Congress was ignorant of the damage, but because most farmers recouped much of their losses through crop insurance. This was the intended effect — to provide a safety net for farmers — which is why the U.S. government helps farmers pay for this insurance by paying an average of 60 percent of the cost of crop insurance premiums. The Trump administration unveiled its 2018 budget proposal last month, which includes a $40,000 cap to crop insurance subsidies, potentially saving tens of billions of dollars over the next ten years. For next year alone, there is a 21 percent, or $4.7 billion, cut to the U.S. Department of Agriculture. The proposal has outraged farmers and agricultural groups across the country. The American Farm Bureau Federation and National Farmers Union have come out strongly against President Donald Trump's budget proposal. “The president's proposed budget is an assault on the programs and personnel that provide vital services, research, and a safety net to America's family farmers, rural residents and consumers,” said National Farmers Union President Roger Johnson. “Clearly, this budget fails agriculture and rural America,” said American Farm Bureau Federation President Zippy Duvall. There are several types of crop insurance. With multi-peril crop insurance, farmers pay a yearly premium to make sure they recover money lost due to disasters such as drought, fire or flooding. If a field's estimated yield would amount to $40,000 and the farmer insured 75 percent of its value, the farmer would receive $30,000 if a fire wiped out the field. Currently, the subsidy pays a percentage of the premium. Factors such as crop type, historical yield and price of the crop determine the cost. Gammill says the subsidies are the only way many farmers can afford crop insurance at all. Not only did the succession of natural disasters inflict massive damage to crops and pastures, they have also massively driven up premiums. “It's already hard for farmers to get crop insurance because of the disasters in recent years,” Gammill said. “If it gets too expensive, there's no point.” He says the $40,000 proposed cap would force many large operations out of the insurance pool, which would further compound the problem. “When the pool shrinks, everybody's premiums will go up,” Gammill said. Trump also is proposing to save $6 billion over 10 years through cuts that include eliminating federal funding to some conservation programs such as a Watershed Protection and Flood Prevention Act, a program that provides money to rehabilitate and repair aging dams. There are also cuts to agricultural research spending, SNAP and the rural development office — in charge of providing small loans, housing assistance and infrastructure developments to rural cities. Trump's budget proposal is simply a proposal, and Congress rarely follows the executive budget closely. But proposals indicate the priorities of the president, who drew much of his support from rural Americans, the group that would be most impacted by these deep cuts. There were numerous questions about the proposed cuts in town hall meetings U.S. Rep. Frank Lucas held in Perry and Stillwater last week. Trump received an average of 73 percent of the vote in those counties. Lucas serves on the House Committee on Agriculture and assured constituents that the cuts probably won't pass: “You can't just defund crop insurance,” he said. Source - http://newsok.com

13.06.2017

USA - Keep crop insurance affordable and widely available

Although I grew up on a farm, I did not fully appreciate how precarious the business of farming was until I was a little older and thinking seriously about getting my own ground and starting my own operation. One incident, in particular, really put the value of risk management in perspective for me. It was early summer and I was helping my dad build a new barn for our equipment. We started on a Friday and had plans to finish up by Monday, but later during the weekend a storm blew through the area with hail and strong winds; some even estimated that a small tornado was a part of the mix. That storm not only decimated our entire field of crops, but also shredded the barn to nothing. All of our hard work—in the field, on the barn—was for naught. My family did not have a nest egg to cover the significant cost of the damages. In fact, we had fixed expenses and operating loans tied to those investments. If we had not purchased crop insurance, we would not have been able to recover from the loss of our crops. If we had not purchased another kind of insurance on the building, we would not have been able to recover the cost of replacing the barn. In that single moment, I realized there are no guarantees and certainly not with farming. We operate at the will of Mother Nature. As a result, we have to do our part to minimize the risk as best as we can, so we can get back on our feet when a disaster strikes. As my father and others of his generation have taught me, doing our part means taking a conservative and diverse approach to managing the farm. That includes being smart about purchases of equipment and inputs, developing a sound business planand also purchasing crop insurance each year. Although crop insurance is a backup for all of the other measures taken to be successful, I can say with certainty I would not be able to operate without it. I am a young and beginning farmer with just six years under my belt. My bank would not approve an operating loan without proof of crop insurance. Frankly, after watching my father and neighbors sustain difficult losses, I would not want to think about farming without it. While farmers must do their part to minimize the economic impact of a disaster, it is also important that policymakers in Washington, D.C. do theirs. This means ensuring federal crop insurance remains widely available and affordable for all farmers across the country, especially young ones like me. It seems that task becomes more difficult when special interest groups distort the truth about the risks farmers face and especially about the cost and mechanics of the risk management tools in the farm bill that we use to survive the uncertainties and hardships of agricultural production. Right now, those Washington think tanks are launching an inexplicable attack on crop insurance in an effort to dismantle the program by trying to portray it as a give away to farmers and as a tool that only benefits large, established farmers. In reality, their efforts would only push me, and other young farmers like me, out of the program and out of business. We would not be able to afford crop insurance because the premiums would be too high. We would not be able to afford to farm because banks would consider us too great of a risk without some kind of assurance that we can pay our bills if a catastrophic event wipes out our crops. This is important to remember as Congress begins the process of writing a new farm bill. With net farm income at one of its lowest points in decades and the average age of the American farmer at the highest, now is not the time to dismantle one of the key pieces of the farm safety net. Source - http://www.hpj.com

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