Agroinsurance

France - Severe fruit losses due to the frost in April

The frosts at the end of April caused significant losses for many French farmers, according to the French National Association of Apples and Pears. In some areas of the country temperatures fell below 7 degrees Celsius, causing many producers to lose almost all of their crops, stated France Bleu. Some producers have managed to reduce the damage through the use of protection systems, such as heaters, antifreeze towers, and water sprinklers. Losses vary considerably from one area to another. Experts from the French pome-fruit sector have estimated apple and pear losses at around 10-15 percent, although a more accurate assessment will be made by the middle of June. However, according to reports, the areas of Normandy and Pays de la Loire were particularly affected by the frost and estimates are they lost 80 to 100 per cent of their harvests. Source - fyh.es

India - Govt. plans to expand crop insurance scheme

Even as Tamil Nadu Chief Minister Edappadi K. Palaniswami has petitioned Prime Minister Narendra Modi about the delay in the disbursal of compensation claims of farmers under the Centre’s new crop insurance scheme, the State government has planned to expand the coverage of the scheme both in terms of number of farmers and the acreage. For the year 2017-18, the plan is to rope in nearly 23.9 lakh farmers whereas around 15.2 lakh farmers were enrolled under the insurance scheme, known as Pradhan Mantri Fasal Bima Yojana. In terms of extent of area to be covered, this year will be around 30 lakh hectares while it was 12.6 lakh hectares last year. As the long-term samba crop (which corresponds with the rabi crop in rest of the country) is the main crop of Tamil Nadu, as many as 15.1 lakh farmers are expected to be covered. The remaining 8.8 lakh crop farmers are going to be covered during the kuruvai (or kharif) crop. The State government has also decided to continue with the implementation of the Unified Package Insurance Scheme, envisaging the provision of life insurance cover to farmers and insurance of agricultural pumpsets, in Cuddalore and Nagapattinam districts on pilot basis. Totally, it has set apart ₹ 522.7 crore towards its share for the schemes. In this regard, the State government issued an order on Wednesday. Delay in disbursal When Mr. Palaniswami met Mr. Modi in New Delhi on Wednesday, he, through his letter, complained that all the insurance companies – Agricultural Insurance Company of India (AIC), ICICI Lombard and the New India Assurance Company – were found to be “slow in disbursement of claim compensation” to the affected insured farmers. Pointing out that the farmers of the State were already “under distress” due to the crop loss caused by the “severe drought” in 2016-17, he stated that the delay would “further enhance the agony of the aggrieved farmers.” This was why he requested the Prime Minister to have a direction issued to the companies for immediate disbursal. Dues released Meanwhile, the State government has disbursed about ₹404 crore to around 2.96 lakh insured farmers towards compensation for the damages suffered during the samba crop of 2015-16. The disbursal has been carried out by transferring the amount through bank accounts of the agriculturists. Till that year, the National Agricultural Insurance Scheme was in force. The three top districts, which received nearly 90% of the amount of compensation were Nagapattinam (around ₹205 crore); Tiruvarur (₹101.7 crore) and Cuddalore (₹45.15 crore). Source - http://www.thehindu.com

USA - Don't drain the crop insurance pool

President Donald Trump was right when he said insurance is a complicated subject. When explaining its finer points, I often describe insurance as a pool. The deeper and wider the pool — that is, the more people covered — the more insurers can spread risk, which makes insurance cheaper for everybody who’s swimming. To ensure the pool is big enough, it’s important to attract people with low-risk levels to offset losses elsewhere. For example, safe drivers are needed in the auto insurance pool to make up for accident-prone motorists. The exact same principle applies to crop insurance. That’s why I was puzzled when I read a recent opinion piece in this paper [Crop insurance subsidies should be capped, May 16] urging Congress to increase insurance costs for larger farms. Doing so would inevitably reduce participation by agriculture’s least risky operations and essentially drain the crop insurance pool. That would drive up insurance costs for all, including small and beginning farmers who tend to be riskier and need coverage the most. America hasn’t always had a good crop insurance system to protect farmers from the whims of Mother Nature. In the past, farmers had to go to Congress to ask for disaster aid. This wasn’t fair for taxpayers, who had to foot the whole bill, or for farmers, who often waited years for help to arrive. So, Congress asked the private sector for help. Now, farmers visit a private-sector agent to design an insurance policy tailored to their individual operations. And when disaster strikes, a private-sector claims adjuster verifies the loss and a private company cuts an indemnity check in weeks, not years. It’s so popular that farmers have collectively spent $50 billion from their own pockets since 2000 for coverage. Farmers must also shoulder at least 25 percent of a loss before receiving any help. In other words, crop insurance ensures that farmers are active participants in funding their own safety net. But farming is risky business and farm households have much more volatile income than non-farm households. Similarly, crop insurance is exposed to greater risk than other lines of insurance — a single drought can devastate farms from coast to coast, as we saw in 2012. Therefore, the government has a role to play. To save taxpayers money, and to ensure farmers keep paying for part of their safety net, Congress incentivizes participation by discounting premiums and helping pay administration costs that would otherwise fall to farmers. It also encourages the expansion of coverage options so that insurance works as well for growers of green beans as it does soybeans. Unfortunately, some critics of farm policy want to upend the whole system by capping insurance discounts or even excluding larger — and less risky — farms altogether. It makes for an easy talking point, but it would carry unintended consequences. By removing your most established farms, and all the acreage associated with those farms, you are doing the same thing as excluding the healthiest people from life insurance. You are draining the pool, making insurance costlier and less available for everyone left. Crop insurance works well because it is a tool available to farmers of all sizes in all geographic regions. Congress should not upset this delicate balance by discriminating against one group of growers and weakening their ability to manage risk. Doing so would throw small farmers, and ultimately taxpayers, in the deep end. Source - http://www.desmoinesregister.com

India - General insurance industry's premium grows 16% in April

General insurance industry grew 16 per cent to Rs 12,206 crore in April in terms of gross written premium (GWP) collection. In April last year, GWP stood at Rs 10, 500 crore. The industry saw a higher growth of 30 per cent in terms of GWP during fiscal 2017, according to Irdai data. However, the April figure doesn't include the crop insurance segment that drove growth in the general insurance industry by adding almost Rs 18,000 crore in FY17. Crop insurance for the current fiscal will start shortly with kharif sowing. In a first, the private sector general insurance (GI) companies have overtaken their state-owned peers in terms of GWP market share in April. During the month, the four PSU GI companies' (GWP) grew only 5.42 per cent to Rs 5,904 crore, while their peers in the private sector expanded by 27.88 per cent to Rs 6,302 crore, the data showed. "In the month of April, the private sector players have grown at 27.88 per cent and four PSU general insurers registered a growth of 5.42 per cent (without standalone health and mono line insurers). "The difference has been mainly in agriculture business, where the private players have shown an increase of more than Rs 400 crore while it has been hardly anything for PSUs," Sanath Kumar, chairman and managing director, National Insurance Company, told PTI. "This could be mainly due to some adjustment/ accounting entries and cannot be seen as a trend. Further, there has not been any increase in April renewals of mega risks with PSU insurers," he said. "PSU insurers' growth would pick up in the coming months," Kumar. The PSU general insurers continued to have more than 50 per cent of market share (53.21%) until fiscal 2017 as against 46.79 per cent for their private peers. Commenting on the higher growth recorded by the private players, United India Insurance's acting CMD AV Girija Kumar said one month data is not sufficient to make any annual projection. After the increase in the third party motor premium since April 1, the industry, as a whole, has recorded the highest growth in the portfolio, a 23 per cent rise in total premium to Rs 1,888 crore. The health portfolio went up by 9 per cent, from Rs 3,277 crore to Rs 3,568 crore. However, there has been degrowth in aviation and marine portfolios in the month, the Irdai data said. Four PSU general insurance companies were formed in 1970s after merging over 100 firms in existence then. The four state-owned companies are New India, National, United and Oriental. Private sector GI companies came into existence after the sector was opened in 2001. At present, there are 18 GI firms in the private sector. Asked about the private players over taking their PSU peers in terms of GWP market share last month, Bajaj Allianz General Insurance MD and CEO Tapan Singhel said the spike was because of growth in agriculture business. Pushan Mahapatra, managing director and chief executive of SBI General, said "April has been a very good month for us across channels, including corporate." Source - http://economictimes.indiatimes.com

India - Crop destroyed for CM’s programme

“If the rains continue to shower like this, it would be difficult to construct the stage for CM’s programme,” said assistant engineer of Harangi rehabilitation project, R K Rajegowda. “Chief Minister Siddaramaiah is visiting on May 31 to take part in the programme to fill the lakes on the banks of river Cauvery. The preparations for the programme is being scheduled in a farm near the river. As it is raining heavily, it has become extremely difficult to construct the stage in the farm. The programme is nearing, but the work is not progressing,” he added. The stage is planned to be set up in the farm of Swaminayaka, Narayana, Mallesha Nayaka and Lakshmi on the banks of the river. These farmers have already grown various grains, but the officials have uprooted the crops with machines. When the farmers have contacted R K Rajegowda asking for compensation, he said he would solve it within 2 days. But even after 7 days, no compensation has been given, the farmers said. Rajegowda clarified that the compensation would be given by the government after analysing the crop loss. Source - http://citytoday.news

Italy - Sicilian citrus volume affected by CTV this year

The damage caused by the Citrus Tristeza Virus (CTV), in addition to the heavy local rains and frosts recorded weeks ago, have taken a toll on both the trees and their fruits. "I think it is very necessary for producers to have a safety plan to deal with this disease and prevent it with the replanting of roots able to resist the virus," affirms Guido Martinico, manager of Azienda Agricola Guido Martinico. Consequently, there is a smaller volume of Sicilian fruit in the market, with the corresponding rise in prices. "We sell only in Italy, although this year, for the first time, we have an online platform where orders can be placed from other places," explains Martinico, which has 15 hectares planted with citrus fruits, namely Tarocco (300,000 kg of production), Moro (120,000 kg of production), Nova clementines (50,000 kg) and Navel (30,000 kg). "The price in the international market is changing and depends on the calibre of the fruits, among other factors. It is not yet possible to take stock of the campaign because we need perspective, but last year the price stood between 1.70 and 1.80 Euro per kilo," clarifies Martinico. Another innovative move for this Sicilian company is its project for the adoption of integrated production, which is an agricultural production system with a low environmental impact. "This (integrated production) consists in the coordinated and rational use of production factors in order to reduce the use of chemicals that harm the environment and human health," adds Martinico. Source - http://www.freshplaza.com

South Africa - Western Cape drought has already caused a $38m loss in grapes

The Provincial disaster declaration will be used as a further motivation to request drought relief funding from the National Government. In March, the Western Cape Department of Agriculture estimated that R96 million was needed to support farmers in drought affected areas for five months. Alan Winde, Minister of Economic Opportunities, said stock farmers, who farm with livestock, and irrigation farmers, who use irrigation systems to water their crops, have been among the worst affected. "We've seen a decline in the volume of wine grapes harvested, in part due to a lack of irrigation water. This will result in an estimated R500 million loss in that industry." "Current water restrictions for irrigation farmers vary from 30% to 100% in the Berg/Riviersonderend water system. These restrictions can have a serious impact on the crop yields in 2017/18. It means very little water will be available for the very important post-harvest irrigation period. During post-harvest irrigation, water is needed to move the fertiliser into the soil in preparation for the next crop." Minister Winde said the Western Cape Department of Agriculture had allocated R80 million for drought relief through reprioritisation of the equitable share budget since 2015/16. These funds have supported farmers with the purchasing of fodder for their animals. "During the irrigation season we also provided irrigators with near real time data on the actual crop water use and water shortages experienced by their crops through the FruitLook project. Farmers can access accurate information on the water needs of their crops, field by field, at any given time. Using only satellite data and weather station data, we can tell farmers how much water their crops used in the previous week and whether the crops experienced any water deficits." Source - allafrica.com

India - Weather & pest destroy 80% mango crop

The most awaited mango crop, including Dussehri, has been 80% damaged because of bad weather and pests. As per members of mango growers' association, the 14 fruit belts in UP that produced around 40 lakh metric tonne mangoes in the state last year are likely to yield only 20% this season because of a number of thunderstorms and 'Rujji' pest that infects mangoes making them rot before ripening. About 3 lakh metric tonnes of mangoes—1.5 lakh metric tonne each by storm and pest—has already been destroyed. The pest has affected most of the Dussehri, as also the Chausa and Langda varieties. "This time, we sprayed pesticides eight times though last year we did it only twice, yet there was no result and mites destroyed our crops. Mites have been affecting our crops for the past four years but the damage was never as high as this time," said Insram Ali, president of mango growers association of India. "We have come to the conclusion that the pesticides we got were spurious," he added. As per the association office-bearers, the prime mango producing belt comprising Lucknow, Malihabad, Varanasi, Amroha, Allahabad and Bijnor have been worst affected. According to another mango grower Naseeb Khan, the mango mite probably got immune to the same pesticide over the years. "Sometimes, we need to between different varieties of pesticides to get rid of this problem," he said. Central Institute of Horticulture director Dr Shailendra Rajan, however, pointed out three reasons for low crop this year. "The mite is one factor, followed by low temperature during early stages, preventing the fruit from developing properly. Also, since there was bumper crop in the last two years, there was poor vegetative growth and so there was less flowering this time," he said. Considering the huge loss, the association on Thursday wrote to the prime minister and chief minister appealing for insurance coverage. MGAI also demanded 24-hour electric supply, to facilitate irrigation as each mango tree needs at least 90 litres water per week. Source - http://timesofindia.indiatimes.com

Colombia - Blue Marble Microinsurance & Nespresso launch crop insurance pilot

Blue Marble Microinsurance, an association of eight firms aiming to improve the socio-economic environment of the underprivileged through commercially viable insurance solutions, has partnered with Nestle Nespresso SA to create a pilot crop insurance program for smallholder coffee farmers in Colombia. The pilot project’s objective is to protect the coffee industry and enhance farmers’ welfare by addressing supply chain risk, especially as coffee crops are highly vulnerable to the ravages of climate change. Joan Lamm-Tennant, Chief Executive Officer of Blue Marble, said; “I am delighted that Blue Marble is partnering with Nespresso.” “Together, we are driving collaborative innovation across industry sectors, bundling insurance into the existing value chain of the underserved. I am grateful for the opportunity to learn from Nespresso given their deep understanding of the coffee farmers’ needs and their successful track record in creating shared value.” Guillaume Le Cunff, President of NespressoUSA, added; “Nespresso is committed to improving the lives of farmers who work with us to source the highest-quality, sustainable coffee in the world.” “Today, we are pleased to announce our partnership with Blue Marble, an organization equally committed to implementing innovative solutions that aim to mitigate risk and create value for coffee farmers.” Nespresso, which currently works with over 70,000 coffee farmers around the world, and Blue Marble, hope the project’s launch will spread to other players in the coffee industry, providing farmers across the globe the necessary risk transfer mechanisms for long-term security. Source - https://www.reinsurancene.ws

USA - Trump proposes cap on crop insurance

Earlier this week, agricultural groups pushed back against proposed cuts to agriculture proposed by President Donald Trump. One of the proposals is a $40,000 cap on crop insurance, meaning many farmers will be unable to insure their entire acreage. “Crop insurance cuts, seed is high, chemical is high, crop prices are low and crop insurance is already high so why should it get any higher?” AJ Lanier, a farmer near Whitewater said. Lanier and his family farm hundreds of acres of wheat and soybeans. The harsh winter and strange spring weather patterns could take a toll on their yield, making insuring their crops important. Senator Jerry Moran (R-Kansas) said in a statement, “Now is not the time for another hit to Kansas farmers. With low prices, tough weather, poor yields and the latest freeze’s damage to the wheat crop, things could not be worse. The proposed cuts to crop insurance would greatly reduce the effectiveness of the program for farmers and ranchers trying to manage risk and continue feeding the nation.” We reached out to Senator Pat Roberts, R-Kansas who sits on the agriculture committee in Washington DC, who made a joint statement with fellow agricultural committee chairman Rep. K. Michael Conaway, R-Texas, saying: “We support the Trump administration’s goal of achieving three percent economic growth for our nation. USDA’s latest estimates find agriculture, food, and related industries contribute $992 billion to our economy. As we debate the budget and the next Farm Bill, we will fight to ensure farmers have a strong safety net so this key segment of our economy can weather current hard times and continue to provide all Americans with safe, affordable food. Also, as a part of Farm Bill discussions, we need to take a look at our nutrition assistance programs to ensure that they are helping the most vulnerable in our society.” The National Farmer’s Union called the cuts “deeply disappointing” in a statement. Source - http://ksn.com

India - Hailstorm caused crop loss worth Rs 75 crore, relief to farmers soon

Madhya Pradesh government on Tuesday said the crop loss due to recent hailstorm in some parts of the state, including Gwalior and Chambal divisions, has been estimated at Rs 75 crore.The government has initiated crop surveys in the affected areas to ensure early payment of relief to the farmers. "More than seven districts of Gwalior and Chambal divisions have suffered 25 to 33% crop loss during the recent hailstorm. As a result, Rabi crop of 68,926 farmers sowed in an area of 56,555 hectares has been damaged. A loss of Rs 75 crore has been estimated in the calamity," said revenue minister Umashankar Gupta while replying to a question by Congress leaders during call attention motion in the assembly.Raising the matter in the House, Congress legislators Govind Singh (Lahar), Shailendra Patel (Ichchawar) and Satyapal Singh Sikarwar (Sumavali) said that more than 15 districts have been affected due to rains and hailstorm. Crops sown in one lakh hectare area has been affected in these districts, incurring a loss of Rs 300 crore. "In Bhind district, 145 villages have been affected by the hailstorm and the government has approved a relief of Rs 36 crore, but the farmers are yet to get it. Source - http://timesofindia.indiatimes.com

India - Centre-State tiff likely to deny farmers in Kerala crop insurance benefit

As Kerala braces for another year of severe drought, a Centre-State stand-off is set to deny crop insurance benefit to thousands of farmers of the state in the next fiscal. A disagreement over the mode of fund transaction to prepare the annual agricultural statistics will also affect the state’s agricultural plan process. The Centre’s crop insurance scheme, implemented through the National Agriculture Insurance Company, is based on the average yield calculated by the Establishment of an Agency for Reporting Agricultural Statistics (EARAS). The EARAS is a fully-funded Central scheme implemented through the State Economics and Statistics Department (ESD). In January this year, the Centre decided to abandon the treasury route for fund transactions and asked states to open bank accounts. But Kerala did not comply with the direction resulting in an ultimatum from the Centre that laid out two choices. The first is to opt for bank transactions. Second, if the state government does not want this, the scheme can be converted to a Centrally-sponsored scheme in which the state will have to bear 40 per cent of the project cost. When contacted, ESD director general V Ramachandran told Express the state is yet to take a decision on the matter. “It is a policy decision to be taken by the government. We’ve written to Planning Secretary for necessary directions,” he said. The department has also sent a letter to the Centre requesting the old mode of fund transaction be continued. But the DG said that was unlikely to happen. If the government wants to convert the scheme into a Centrally-sponsored one, the ensuing Budget should have an allocation for this. But it is learnt the Finance Department is unaware of the issue. The inordinate delay in taking a decision will also have a bearing on the state’s agricultural planning and the LDF government’s prestigious schemes to promote farming. It will also affect the salary of over 850 employees working in the EARAS. Source - http://www.newindianexpress.com

India - Drought has caused Rs. 225-crore crop loss

In a dire warning of the tough days ahead for the State, the government on Wednesday revealed that the unprecedented drought conditions had affected vast tracts of farmland, dealing a crippling blow to farmers. Revenue Minister E. Chandrasekharan informed the Assembly that 30,353.06 hectares of farmland had already been affected, resulting in a crop loss of Rs. 225 crore. Paddy farmers were the worst hit, suffering a loss of Rs. 106 crore due to crop damage in 26,499.42 hectares. Making a special statement under Rule 300 in the House, he said other crops including coconut, banana, vegetables and cash crops were also expected to be affected by the advancing drought. The government anticipated a significant drop in agricultural output, impacting on the economy and every sphere of activity in the State. The reservoirs in the State were down to 44% of their storage capacity and the groundwater level had gone down by 2 to 2.5 m, representing a serious crisis. Mr.Chandrasekharan said 5,698 borewells had been repaired and 9,453 ponds restored in all districts. The government had imposed curbs on digging of borewells for commercial and industrial use till May 31. Water kiosks and tanker lorries had been pressed into service to provide drinking water in parched areas. Adequate funds had been sanctioned to each district for water supply and Ministers deputed to oversee the drought mitigation measures. The Minister said the Forest Department had initiated measures to check the migration of animals from forests to human settlements in search of water. An all-party delegation from the State was scheduled to seek Central government assistance for drought mitigation. Mr. Chandra- sekharan sought the cooperation of elected representatives, officials and the general public to conserve water resources and check wastage. Source - http://www.thehindu.com/todays-paper/drought-has-caused-rs-225crore-crop-loss/article17391355.ece

India - Maharashtra govt releases ₹894 crore as crop insurance for farmer

The state government released Rs893.83 crore as insurance for farmers whose crops was damaged due to hailstorm and unseasonal rains in the 2015-16 rabi season. The state government released the amount which will be distributed to 26.88 lakh farmers in various parts of the state. The highest compensation, Rs402 crore, will be distributed to 13 lakh farmers. Farmers in Aurangabad and Pune divisions will get Rs340.57 crore and Rs 107.36 crore respectively. Farmers in Marathwada district had lost soyabean and other crops due to the rains. As many as 34.26 lakh farmers had participated in the national agriculture insurance scheme with their share of about 20% of the sum insured. The farmers paid Rs56.91 crore to insure the crop on 24.60 lakh hectare land with the insurance cover of Rs2865.40 crore. “The insurance amount of Rs893.83 crore being released is for the crop loss between November 2015 and March-April 2016. The agricultural production was hit badly in 2015-16 due to the drought, but the compensation we paid against the insurance was unprecedented. Due to the satisfactory insurance settlement in the last one year, we have received very good response to the Prime Minister’s Crop Insurance Scheme in the current year,” said an officer from the agriculture department. Besides the premium share paid by the farmers, the state and central governments bore the burden of Rs408.92 crore each. Agriculture Insurance Company of India Ltd, which was the insurance company appointed by the state, will release the insurance amount in the bank accounts of the farmers. Besides soyabean, jowar, sunflower, wheat, onion, paddy are the crops which have been covered by the crop insurance. The government had given a push to the crop insurance in the backdrop of the drought for consecutive three years. The state had settled the insurance cover of Rs4,205 crore for loss of kharip crops, taken between July and November 2015. Source - http://www.hindustantimes.com

Engineering firms look to market robotic apple pickers by 2019

Worry over agricultural labor shortages may be troubling many under the new administration but two engineering firms are hoping to ease worries and are aiming to market robotic fruit-picking machines by 2019. The two competing companies – Abundant Robotics Inc. in California and Israel-based FFRobotics – have plans to manufacture and market commercial robotic harvesters sometime in the next 18 to 24 months, representatives told a global audience of fruit growers here Thursday. The two reps gave presentations to hundreds of orchardists, packers and shippers from 13 countries gathered last week in Wenatchee for the 60th Annual Conference of the International Fruit Tree Association. The presentations on Thursday focused mostly on apple harvesting, but both reps said the machines could be adapted to pick other fruit – oranges, peaches and maybe even cherries. Advantages of automation include no pickers’ bags, no ladders, no hauling to distant bins, less bruising and – depending on operator schedules – the possibility of 24-hour harvesting. Manufacturers are aiming for a 2-year return on investment, with the cost of machine harvesting equal to or less than human crews. “The ultimate goal is for our machines to be as good as humans when it comes to harvesting,” said Dan Steere, co-founder and CEO of Abundant Robotics. “We seem to be on track.” Source - spokesman.com