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17.02.2017

Spain - Storms cause loss of 30% of Alicante's citrus production

The drier weather and higher temperatures of the last two weeks have allowed Alicante's growers to re-enter their fields, "which had been muddy or flooded by the constant rains recorded before Christmas," stresses Juan Miguel Montaner, head of La Unió de Llauradors (Grower's Association) in the province. Based on what has been revealed by the latest assessment carried out in the field, especially in the area of ​​the Vega Baja, as well as by the auctions, the loss of citrus crops caused by the excess humidity has been estimated at 30%. The issue has especially affected the branches closest to the ground," he adds. Moreover, after a long period of drought, this atypical situation, with a very damp soil, has brought the planting of winter vegetables (lettuce, broccoli, cauliflower, etc.) to a halt for a few weeks. As a result, the total harvest will be greatly reduced or lost (as in the case of potatoes) ahead of the spring campaign, according to the representative of La Unió. "The rain has, in fact, been beneficial for rainfed and wooded areas, but not for vegetables," explains Montaner. The halt in the planting of some of these crops has also affected the hiring of labourers, whose number has declined, especially in the month of January. At the moment, producers are gradually marketing the products that were already planted, including artichokes, which are the least affected, given that they are more resistant, according to Montaner. At auction, it is reaching prices of up to 0.80 Euro per kilo, "when it would normally just cost 0.45 Euro," he affirms. The drop in the production and the latest cold waves in Europe have actually given a boost to vegetable prices in many places. The province's growers, for their part, point out that the issue of production losses has been more noticeable in the areas of Cartagena, Lorca or Almeria, especially in the case of shipments for export. In the week from 31 January to 6 February, products such as aubergines had a price at origin of between 2.15 and 3.01 Euro per kilo. Courgettes oscillated from 1.29 to 2.58 Euro per kilo, according to data from the Observatory of Food Product Prices of the Region of Valencia. In the following week, some supermarkets of Alicante were selling courgettes for 1.60 Euro per kilo, broccolis for 2 Euro per kilo, cabbages for 0.99 Euro per kilo, leeks for 2.19 Euro per kilo or aubergines for 1.99 Euro per kilo; prices which, in some cases, are lower than in the previous week in the same supermarkets. Source - diarioinformacion.com

17.02.2017

Canada - Risk management: farmers could learn from insurance companies

Insurance and farming couldn’t be more different, you might think. One is dull as dishwater and the other is a hair-raising, high-stakes continual gamble on the commodity markets. The way they most commonly interact is through the insurance products that farmers can use to mitigate some of the risks they take on every year, whether that’s for market risk, production risk, injury risk, death risk or mortgage risk. It’s like a pairing of opposites. But it isn’t because deep down the fundamental role of farms and insurance companies is the same: taking on a bunch of risk to skim a margin off the top. Sure, there are lots of differences in the types and concentrations of risk each regularly takes, but at core each is being rewarded for taking on and managing risk. Neither has a unique product that nobody else can produce and each relies upon an expense capital base that must be maintained. I was thinking of this recently after chatting with David Derwin of P. I. Financial, who is a proponent of using options contracts to hedge risk in a farmer’s crop portfolio. Options are generally unpopular with farmers because they require the payment of a premium, and to many farmers, that’s just one step too far down the insurance path. For some farmers, crop insurance makes sense, equipment and property insurance makes sense, but marketing insurance seems crazy. Derwin doesn’t push farmers to use options for all their hedging needs, but he thinks they are a good tool for a number of marketing circumstances and make a great part of a risk management package. This is where the insurance likeness to farming came to me. The main difference between the risks insurance companies and farmers assume is the extreme concentration of the risks farmers take on, compared to the highly diffused risks general insurance companies acquire. However, a good crop mix, a good production mix (with more than just crops being produced), and a good marketing mix can spread out those concentrated risks. Adding in various risk management tools spreads them out even more, and that’s where Derwin is right about putting options into the mix. Options are not the perfect solution for every situation, but they make sense in many cases, as do futures, fixed price contracts and other tools. By adding another mechanism into the hedging and pricing regime of a farm, the farmer reduces the critical mass that can blow up when things go wrong. It might not be a major change to the level of overall risk on a farm, but it helps make potential problems less explosive. Farming will never be as dull-seeming as insurance. But it would certainly help many farmers to build a little bit of dullness into their all-to-tempestuous operations. Dull is better than dead. Source - http://www.producer.com

16.02.2017

USA - Deadline nearing for crop insurance choices

During the next few weeks, many farm operators will be finalizing their crop insurance decisions for the 2017 crop year. March 15 is the deadline to purchase crop insurance for the 2017 crop year. Profit margins for crop production this year remain very tight, which makes this year’s crop insurance decisions even more critical. Producers have several policy options to choose from, including yield protection policies and revenue protection policies, as well as other group insurance policy options. There also are decisions to be made about using “enterprise units” versus “optional units” and whether to take advantage of the “trend adjusted” actual production history yields for 2017. Yield protection policy options provide for “yield only” insurance protection, based on actual production history yields on a given farm unit. Yield protection prices are based on average Chicago Board of Trade prices for December corn futures and November soybean futures during the month of February, similar to revenue insurance products. Producers can purchase yield protection insurance coverage levels from 50 percent to 85 percent, and losses are paid if actual corn or soybean yields on a farm unit fall below the yield guarantees. Revenue protection policy options provide for a guaranteed minimum dollars of gross revenue per acre (yield multiplied by price), based on yield history and the average Board of Trade prices for December corn futures and November soybean futures during the month of February. The revenue guarantee is increased for final insurance calculations if average Board of Trade prices during the month of October are higher than the February prices. Producers purchase revenue insurance coverage levels from 50 percent to 85 percent, and losses are paid if the final crop revenue falls below the revenue guarantee. The final crop revenue is the actual yield on a farm unit multiplied by the Board of Trade December corn futures price and November soybean futures price during the month of October. Revenue protection with harvest price exclusion policy options function the same as revenue protection policies, except that they have a minimum revenue guarantee (yield and price) that is fixed, based on the February Board of Trade corn and soybean prices, and cannot be increased later. As of Feb. 6, the 2017 estimated crop prices in the upper Midwest for all three previously mentioned categories of policies were $3.95 per bushel for corn, $10.13 per bushel for soybeans and $5.62 per bushel for spring wheat. Yield protection prices and revenue protection base prices will be finalized March 1. Many producers in the upper Midwest have been able to enhance their insurance protection significantly in recent years by utilizing the trend-adjusted yield endorsement, with only slightly higher premium costs. The actual production history yield exclusion option allows specific years with low production to be dropped from crop insurance actual production history yield guarantee calculations. Several counties in central and northern Minnesota, for example, are eligible for yield exclusions for corn and soybeans in some of the past 10 years. For information on which counties, crops and years are eligible for the yield exclusion option, go the USDA Risk Management Agency website at www.rma.usda.gov. Given the tight profit margins for crop production in 2017, producers might have a tendency to reduce their crop insurance coverage to save a few dollars per acre in premium costs. However, a producer first must ask the question: “How much financial risk can I handle if there are greatly reduced crop yields because of potential weather problems in 2017 or lower than expected crop prices?” Revenue protection policies serve as an excellent risk management tool for these situations, and 2017 might not be the year to reduce insurance coverage. In recent years, many Midwest corn and soybean producers have been using a minimum of 80 percent revenue protection coverage with “enterprise units,” but this year might be the time to consider upgrading to the 85 percent coverage level. In many cases, the 85 percent coverage offers considerably more protection with only a modest increase in premium costs. Many producers will be able to guarantee $550 to $650 per acre for corn and $350 to $450 per acre for soybeans at the 85 percent coverage level in 2017, especially when they’re also using trend-adjusted actual production history yields. A reputable crop insurance agent is the best source of information for more details of the various coverage plans, to get premium quotes and to finalize 2017 crop insurance decisions. Source - http://www.tristateneighbor.com

16.02.2017

South Africa - News Armyworm could cause national disaster

South Africa is facing a possible national disaster over the fall armyworm invasion, which could see a devastating effect on sub-Saharan crop production. This is according to senior economist for Grain South Africa, Corne Louw, who told City Press that the extent of the damage will only be known as the crop grows. “The fact is that if you do not effectively control the fall armyworm, you might have a total crop loss on individual basis,” Louw said. In response to this widespread threat, a high-level emergency meeting kicked off yesterday in Harare, Zimbabwe, between the United Nations Food and Agriculture Organisation (UN FAO) in collaboration with the Southern African Development Community and the International Red Locust Control Organisation for Central and Southern Africa. The meeting will run until Thursday, where delegates from south and east Africa are attending in order to tackle “endemic threats in Southern Africa”. Two delegates from the plant health unit at the department of agriculture, forestry and fisheries are also attending the meeting. “It is only proper that we send out a statement regarding the outcome of the meeting by Monday,” department spokesperson Bomikazi Molapo said. The red locusts are coming  Agronomist for the UN FOA, Sina Luchen, told City Press that apart from the threat posed by the fall armyworm, South Africa could potentially be at risk of another unwanted guest, the red migratory locust. “The International Red Locust Control Organisation for Central and Southern Africa is present at the meeting because they have been monitoring the locusts which are currently present in countries like Tanzania, Malawi and Mozambique,” he said. Luchen said that the countries present at the meeting have to work together in order to help implement control measures to ensure an infestation of red locusts does not reach our borders. “Remember, these locusts do not need passports like us humans. They can fly over the border from Mozambique and eat anything in their paths. This is why we need to all be more vigilant about what is happening with these pest infestations,” Luchen said. The fall armyworm, which has invaded farms in Limpopo, North West, Gauteng, Free State, Mpumalanga and Northern Cape, is difficult and expensive to control, said the UN FAO, and is already causing extensive damage to food crops, mainly maize. Calls to declare a national disaster As a result of the widespread threat posed towards South Africa’s crops, the Democratic Alliance this week called on Minister of Cooperative Governance and Traditional Affairs Des van Rooyen to declare the “invasion” of the armyworm a national disaster. “It is vital that the government respond effectively and efficiently, and as soon as possible. The consequences of not doing so could lead to job losses which our country cannot afford, should farmers lose crops,” the DA’s Annette Steyn said this week. Spokesperson for the cooperative governance and traditional affairs department, Legadima Leso, told City Press that the issue hadn’t been discussed. “As far as I am aware, our department is not dealing with this and the relevant departments will have to look into it,” Leso said. The DA also accused the department of agriculture as being “unacceptably slow to respond” to the report by the plan protection sciences association. “In fact, they were warned four months ago, in October 2016, by the plan protection sciences association, which confirmed the outbreak of the armyworm in Nigeria and warned that it could spread rapidly,” Steyn said. What the farmers say In the last month farmers have been on high alert in an effort to try and ward off the worm, which is native to the Americas and was first reported in West Africa a year ago. To paint a picture towards the damage that the fall armyworm has caused, City Press spoke to Adel Prinsloo, who has a maize farm in Onderstepoort, north of Pretoria. She first discovered the presence of the worm on her farm about four weeks ago, and she has had what seems like a losing battle against the pest since then. “In the last three weeks, I have spent about R50 000 towards purchasing pesticides, and even that doesn’t work against the worm,” Prinsloo said. On average, over a three-to-four month period, Prinsloo would ordinarily spend about R30 000. “I am really battling to contain the infestation. They are eating away at everything, including the roots of the maize crops. I just want the government to find a solution because it’s costing me a lot of money and I am not sure how much longer I can go on like this for,” she said. Armyworm invasion could cost SA billions The International Association for The Plan Protection Sciences released a report in October last year, outlying the risks that the armyworm posed to crop production in Africa, with an estimated damage of $400 million (about R5.2 billion) caused by the worm in Brazil alone. “In climatic regions allowing constant generations such as in Brazil, the third largest maize producer in the world, S. frugiperda (fall armyworm) is considered as the most important pest on this crop causing a damage estimated at more than $400 million annually,” the report said. If these figures are anything to go by, the damage that crops in Africa will undergo as a result of the worm could be detrimental to the livelihoods of millions. Ultimately, the threat of the army fall worm coupled with the red locust and other crop-related diseases has led to this being a wake-up call for the southern African region, according to Luchen. “We all need to work together in order to come up with viable options and control methods, including early warning detection, which is key in the fight against food security being compromised. It is about information sharing and understanding the pests. Once we understand them, we can fight them,” he said. Source - http://city-press.news24.com

16.02.2017

USA - Polk Co. farmer sentenced for false statements on crop insurance

A farmer from Dresser has been sentenced for false statements. Mark Johnson, 50, was sentenced to one year of probation, which includes six months of home confinement in federal court on Monday. He was also fined $20,000 and ordered to pay over $228,000in restitution. Johnson pleaded guilty in November when he admitted to overstating his actual soybean and corn production history to increase his insurance reimbursement in later years. Source - http://www.weau.com

16.02.2017

US researchers awarded $1.37m to reduce potato losses during storage

University of Nevada Reno's plant biology scientists, Dylan Kosma and Patricia Santos, are searching for ways to reduce potato crop losses during storage. With figures from 2013 showing an approximate loss of 33% of the crop in the  U.S. totaling $1.2 billion in losses, they believe this could have a huge impact on the industry. The University's Kosma-Santos lab, in the College of Agriculture, Biotechnology and Natural Resources, was recently awarded a $1.37m grant by the National Science Foundation to investigate the molecular-genetics and biochemistry that underlies potato crop losses during tuber storage. A large proportion of these crop losses are due to factors such as rapid water loss and disease while in storage. "Even a 5 percent reduction in potato losses during storage would improve the economic return for the producers and the potato industry by $170 million," Kosma said. Source - unr.edu

16.02.2017

Canada - Alberta farmer hopes rare February harvest will salvage his season

A video of an Alberta farmer harvesting in February posted to Facebook has been viewed more than 300,000 times in less than a week. When Clarence Ewasiw looked at his 1,500-acre farm in Thorhild County in late August, he saw the potential for a very good season. His 600 acres of oats and 450 acres of canola had come in nicely, and he felt the value could reach $700,000. All he had to do was get it off the field. Then, the rain began. “The fall just turned wet,” Ewasiw told Global news Wednesday morning. “We had early snowfall and the fields got so soft that, some of them, we couldn’t even get into.” Ewasiw did what he could, but with so much moisture he had to shut down harvest altogether in mid November. The majority of his crops were still in the field, getting battered by the wet weather. “I’ve got oats laying right down flat, which is probably 70 per cent of the field,” Ewasiw said. “I had another quarter that was a little bit lighter crop and most of it stood, but with the wind this winter a lot of it shelled out.” Ewasiw didn’t give up hope of getting back onto the field, and last week he pulled out his combine. “Well, the ground is frozen now, so we’re not getting stuck or anything.” A video of Ewasiw running his combine in his snow-covered field posted to Facebook by his neighbour, Heather Moellering, has been viewed more than 300,000 times in less than a week. Ewasiw figures the value of what he’s harvested so far is about $50,000. He hopes to salvage enough of his oats and canola to make another $300,000. It’s a far cry from what he could have originally earned, but every dollar helps. “Most of us have bills to pay, input costs due in March,” Ewasiw said. Ewasiw isn’t the only farmer with crops still out in the field. Thorhild County declared a state of agricultural disaster in mid-December, estimating nearly half of the crops in its boundaries was still unharvested. The county’s declaration doesn’t give any financial benefit to producers, but is used as a tool to get the attention of the federal and provincial governments. The Alberta government declared a state of disaster November 22, which allows the Agriculture Financial Services Corporation to access funding from crop and hail insurance premiums already collected so producers can be paid out. Ewasiw says producers have to wait until spring to receive insurance, and for many farmers with bills, that money will be too late. “I hope the government would open their eyes and see what’s happening here,” he said. “Give us an acreage payment, something.” Source - http://www.newstalk770.com

16.02.2017

Mongolian Herders Face Crisis; Red Cross Appeals for Aid

Tens of thousands of nomadic herders in Mongolia face hunger and the loss of their livelihoods, the Red Cross warned Thursday, as temperatures plummet and heavy snow blankets much of the country for a second straight winter. In December, the Mongolian government asked international agencies to provide aid to the most vulnerable herder households who are suffering extreme winter conditions known as a “dzud.” The dzud is peculiar to the landlocked Asian nation and has become more frequent in recent years. It occurs when a summer drought is followed by a harsh winter, causing widespread deaths among the livestock, which herding families rely on for food, transport and income. More than 157,000 people across 17 of 21 provinces are affected by this year’s dzud, said Nordov Bolormaa, secretary-general of the Mongolian Red Cross. More than 70 percent of the country is covered in snow, according to the government. Heavy snow, frigid cold “Now it’s very cold — temperatures are reaching minus 40 degrees Celsius (-40 F) in the northern provinces,” said Bolormaa, adding that snowstorms started a month early last year, at the end of October. The Red Cross launched an appeal Thursday for $654,000 to help 11,300 people with cash, health services and other support. Around 30 percent of Mongolia’s 3 million population lives off animal herding, according to the World Bank, and meat is the primary source of food. Mongolian government figures show more than 42,000 animals had died by early February. The Red Cross warns that number will soar as severe weather is expected to continue through March. As many as 1.1 million livestock died last winter, and the dzud of 2009-2010, one of the most severe in history, saw 9.7 million livestock deaths. Mongolia is already struggling with an economic crisis, as a weak local currency has made household goods more expensive. In the last 27 years, Mongolia has experienced seven dzuds, Bolormaa said, when one in 12 years would be more normal. Now the dzud has hit Mongolia two years in a row. Climate changing While some environmental groups point the finger at climate change, Maarten van Aalst, director of the Netherlands-based Red Cross Red Crescent Climate Centre, said it was hard to make the link with certainty because the dzud is a complex phenomenon. “What we do know, generally, is that extremes are increasing and the predictability of what we can expect as a normal climate in a particular place is gone now,” he said by telephone. Other factors such as denser population and herding patterns could be compounding the effects of the dzud, he noted. Herders forced into city Its growing frequency has resulted in mass migration of out-of-work herders to Mongolia’s capital Ulaanbaatar, putting a strain on the city over the last decade. Migrants end up living in “ger districts,” makeshift neighborhoods named after traditional yurt dwellings, where they burn coal, tires and household waste to keep warm, creating massive pollution. To help protect herders from climate-related losses to their livestock, the World Bank in Mongolia launched the world’s first index-based livestock insurance scheme in 2005. Since adopted by the Mongolian government, it is based on an index of livestock mortality rates by species and district, and offered through local insurance companies and banks. But take-up has been slow. In 2016, close to 19,000 herding households were insured, or around 12 percent of the total, according to Ulziibold Yadamsuren, former director of the program at the World Bank. The cost of insurance is high for poor herders, and they cannot meet some of the criteria such as a requirement for all livestock to be vaccinated, said the Red Cross’s Bolormaa. Source - http://www.voanews.com

15.02.2017

Africa - World Bank & Africa Re to cap weather index-insurance loss ratios

The World Bank’s Global Index Insurance Facility (GIIF) and African Reinsurance Corporation (Africa Re) have teamed up to provide a facility that will help to cap insurers loss ratios on weather index-insurance schemes in Africa. Index-insurance, or index based insurance, typically involves protecting policyholders from weather and climate impacts, using indices based on observed and recorded weather data to provide the payout trigger and parameters. These parametric insurance schemes have proliferated around Africa and Asia, as a way to bring microinsurance coverage to poorer communities. However the insurers selling these products have struggled with controlling their loss ratios, as triggers are set at levels to provide the most benefit to the covered communities. The World Bank Group’s GIIF and Africa Re have signed an agreement that will see them work together to establish a risk-sharing facility, which it says will take the form of an experience account, designed to “decrease premium levels for insured farmers and encourage local companies to create affordable insurance products.” It seems that the GIIF will share a portion of losses with Africa Re, providing the reinsurance capacity, with the loss experience account informing future premium needs as well as providing a mechanism to cap the loss ratio on the subject index-insurance business. The World Bank explains that the facility established with Africa Re’s reinsurance assistance will reimburse insurers who’s loss ratio is above 75 percent across an annual period, reducing the cost borne by primary insurers. The World Bank hopes that by having a cap to their loss ratios insurers operating index-insurance schemes will be better incentivised to invest more in the projects, increasing the capacity they set aside for them and ultimately helping to increase the number of agricultural policyholders covered. Meanwhile insured farmers will benefit from a reduction in premium prices and also receive their payouts faster because of a pre-agreed pricing rule, which will result in quicker claims settlement. “Agriculture provides up to 60 percent of all jobs on the continent, but African farmers need greater access to insurance mechanisms to develop resilience to external shocks and protect their livelihoods,” commented Makhtar Diop, World Bank Vice President for Africa. Alejandro Alvarez de la Campa, Practice Manager, Finance and Markets Global Practice, the World Bank Group, added; “It is the poor and vulnerable who are the most affected by climate change and natural disasters, and insurance is a critical tool to help protect their livelihoods. The large and complex nature of climate change requires us to work closely with our partners, such as Africa Re, to provide access to finance to those communities that need it the most.” “We are excited about the prospect of this innovative solution to give more confidence to African insurers who wish to underwrite the agriculture class of business. It would enhance the development of agriculture and reach out to farmers, who represent over 60 percent of the labor force in sub-Saharan Africa, within the next decade,” Africa Re General Managing Director and CEO Corneille Karekezi said. The main goal from this initiative is to ensure the “continuation and expansion of index insurance as a risk management tool,” the World Bank said. Index insurance, particularly weather index based, is seen as an essential way to support agriculture in emerging or developing regions of the world, as well as to offset the impacts of climate factors such as drought. For farmers the importance of being able to re-plant crops after weather impacts their growing cycle cannot be understated and insurance provides a mechanism through which continuity can be encouraged, ultimately providing the kind of financial safety net that can improve and even save lives. By encouraging risk sharing in order to cap loss ratios, rather like an excess of loss reinsurance agreement might transfer losses above a pre-defined point, the insurers operating weather index insurance schemes can provide greater certainty in terms of policy pricing as well, which is important to ensure policyholders remain policyholders even after a claim. The real goal here will be to encourage even greater scale in the roll-out of parametric and weather index insurance, as it is only through scale that economies will be found, as insurers gain benefits from greater diversification and larger pools of risk, while the reinsurance and capital markets gain a greater appetite to share in the risk coming from these schemes. With the G-7 Climate Risk Insurance Initiative (InsuResilience) having a stated goal of getting 400 million poor and vulnerable people insured against climate risk (directly and indirectly) by 2020, the roll-out of weather index and parametric insurance schemes will need to accelerate and facilities such as this can only help. Source - http://www.artemis.bm

15.02.2017

Canada - Sclerotinia a triple threat for Manitoba sunflowers

Sclerotinia affects a variety of crops, from canola to pulses to soybean. For Manitoba sunflower growers, the disease is a triple threat, with the potential to strike plants at the base, mid-stem or head. In 2016, it was present in 94 per cent of Manitoba sunflower fields. Dr. Khalid Rashid, research scientist at Agriculture and Agri-Food Canada’s Morden Research and Development Centre, surveyed 40 sunflower fields in Manitoba in 2016 to collect data about the prevalence of key diseases infecting the crop. He says knowing what to watch for — and how to manage it — can save yield loss and quality issues that come with infection. “With sclerotinia, the inoculant is all over — it’s a matter of a combination of environment and susceptible hosts,” says Rashid. “No crop has resistance, so we must rely on management, with crop rotation or fungicide application.” So why is sclerotinia so prevalent? It’s because the fungus overwinters in soil by forming a thick mass of mycelia called sclerotia that can handle cold temperatures. Sclerotia can survive in the soil or crop stubble for upwards of five years. It also has a host range of more than 300 plant species. “If a field is under normal soil moisture conditions and sclerotia is in the soil during spring planting, the sclerotia germinate producing white mycelia,” says Rashid. “The mycelia infect the roots, causing root rot or basal stem infection in sunflower.” The root infections take place as early as the seedling stage but when the plant’s demand for nutrients is highest before flowering, growers will notice wilting of the whole plant and sometimes a group of adjacent plants due to root to root infections in densely seeded crops. Infected plants die quickly. For Manitoba sunflower growers the disease is a triple threat with the potential to strike plants at the base (l), mid-stem (m) or head (r).photo: Khalid Rashid, AAFC  Because sclerotia in soil can infect the roots or base stem, waiting a few years before planting another susceptible crop in an infected field may give the sclerotia time to die off. The National Sunflower Association of Canada recommends rotation to cereals and corn. For basal stem rot fungicide control is not an option because sclerotia are scattered throughout the soil, and any seed treatment may protect the seed and seedlings for a short period of time during the seedling stage. When fungus takes flight Sunflower crops are also susceptible to sclerotinia head rot and mid-stem rot, due to infections by the airborne ascospores of this fungus. If soil moisture is high, the sclerotia in the wet soil germinate by producing mushroom-like bodies called apothecia, and these produce large number of ascospores that can originate in the sunflower field or be blown in from nearby fields. “If you plant sunflower in a field that had cereals last year and corn the year before, but the adjacent field had sclerotinia from last year, those mushroom bodies (apothecia) are going to be formed if weather conditions are right, and they’ll produce the airborne ascospores,” Rashid says. “That’s when crop rotation becomes less effective, and the sunflower crop is susceptible to head rot or mid-stalk rot.” To infect a crop or a plant, ascospores need mild weather and a source of nutrients. Rashid says the sugary glands on sunflower stems, and sunflower heads that are loaded with pollen provide ideal nutrient sources for the ascospores for infection. “Infection from spores can happen anytime from early-season to maturity, depending on environmental conditions and the availability of ascospores,” says Rashid. “It causes quite a bit of damage some years.” Plants infected at the stalk will drop and break, resulting in a full loss on the plant. Plants infected at the head will cause yield and quality loss, and the produce is often unusable for the sunflower seed or confection market. When plants are infected at the head there will be yield and quality loss, and the crop is often unusable for the sunflower seed or confection market.photo: Khalid Rashid, AAFC  Resources from The National Sunflower Association of Canada suggest head-rot is the most important disease affecting sunflower production. Growers should pay careful attention to application windows recommended for sclerotinia fungicide control. Growers should also look for sunflower hybrids that have some resistance to the disease. Source - http://www.grainews.ca

15.02.2017

USA - Keep crop insurance working

With farm income at the lowest levels in nearly a decade and more severe weather likely on the horizon, crop insurance must remain affordable to producers of all sizes across the country, said Mike Day, chairman of the National Crop Insurance Services. Day, who heads Rural Community Insurance Services for Zurich North America, explained that keeping crop insurance affordable means fighting efforts to eliminate the wide variety of tailored policies farmers buy today. It also means stopping efforts to reduce the number of people included in the risk pool. Day’s outlook on the new administration and Congress was optimistic, noting it “represents the ushering in of a new pro-business environment in D.C.” This should be positive for crop insurance, which is known for cost-sharing and efficient private-sector delivery, Day noted. But, he said, farm policy critics will be working overtime in their efforts to misinform new policy makers. Day expects crop insurance opponents to single out the past couple of years in their critiques—when insurance indemnities were lower—without acknowledging crop insurance industry’s performance during the flooding, droughts and price declines that marked 2011, 2012, 2013 and 2014. “It will be up to us to remind Congress that the good years help balance the bad,” he said. “Overhauling a program to make it less economically viable ultimately hurts farmers, who need risk management tools to produce food and fiber for a growing world population.” Day’s speech kicked off the 2017 National Crop Insurance Services convention in Florida. It’s a great state for the convention, he said, because it shows how crop insurance has become the centerpiece of risk management on American farms. In Florida, acres enrolled in crop insurance have more than doubled in the last decade, protecting $3 billion in liability today. The rest of the nation has seen even greater improvements in protection, Day said, which should be a point of pride for the industry and the lawmakers who made crop insurance the centerpiece of America’s farm policy. Just 26 million acres had insurance coverage in 1980. Today, 290 million acres are protected, representing about 90 percent of U.S. farmland. And farmers have skin in the game and actively help fund their own farm policy, paying a collective $3.4 billion out of their own pockets for coverage in 2016. Day credited the success of the program, in part, to the expanded crops covered by insurance. The program was available to just 29 eligible crops in the early days, compared to 120 today. He also credited the efficient public-private partnership that makes crop insurance such a good value to farmers and taxpayers. “Successes like these didn’t happen by chance,” he said. “It took an industry willing to put customers first and make investments in streamlining efficiency. It took a dedication and desire to constantly improve and modernize the system. And it took investment and hard work by both components of the public-private partnership.” Crop insurance, he said, has replaced unbudgeted ad hoc disaster bills that cost taxpayers $70 billion from 1989 to 2012. Day specifically pointed to seven essential strengths that have made crop insurance successful: Policies are tailored to each farmer, rather than a one-size-fits-all approach. Farmers use crop insurance as collateral helping them obtain capital to meet rising costs. Payments under the public-private partnership are made in days instead of waiting years for Congress to act. Farmers actively fund their own safety net through deductibles and premiums. Payments aren’t wasteful and only cover verifiable losses documented by adjusters. Farmers benefit from the efficiency of private-sector delivery. Crop insurance is flexible and can be adjusted to fit real-time needs. Day said a survey of 1,000 registered voters, which was conducted last spring, confirmed a strong favorable view of farmers, including the important role farming plays in national security. It also showed overall strong support for providing farmers with appropriate federal assistance. “Crop insurance is a sound investment,” he concluded. “Support from many directions makes it possible. Without it, farms from coast to coast would face financial ruin instead of the chance to rebuild after disaster. And that would be a disaster for every American because every American eats.” Source - http://www.hpj.com

15.02.2017

Australia - Potato pest worries farmers

Potato farmers in the south-west of Australia are worried at the recent discovery of a new pest in the country. This comes after the discovery of the tomato potato psyllid at a backyard property in the Perth suburb of Belmont, in tomatoes at two properties in Mount Hawthorn, in chillies at a property in Palmyra, and in a capsicum crop on a commercial property north of Perth. This is the first time the pest has been detected in Australia. The psyllid is known to attack a range of plants in the Solanaceae family including tomato, potato, eggplant, capsicum, chilli and tamarillo, and also sweet potato. While the pest can cause yellowing of the leaves and misshapen fruit, and in severe cases it can kill the plant entirely, farmers are more worried about its ability to act as a carrier for a disease that is much more troubling. The bacterium Candidatus Liberibacter solanacearum, which causes the zebra chip disease in potatoes, rendering them completely unmarketable. The Liberibacter has not yet been discovered with the psyllid in Australia, but scientists are concerned because its pathway is unknown. Due to its size, it is believed the psyllid can easily spread throughout a region on people, plants or wind currents — a prospect of serious concern to the Western Australian potato industry. Source - abc.net.au

15.02.2017

India - Insurance penetration may cross 4% this year

Insurance penetration in India is expected to cross the 4% mark by the end of the year amid proliferation of insurance schemes, says a report. “The insurance penetration has started its northward journey is evident from the fact that it has increased from 3.3% in 2014 to 3.44% in 2015 on the back of various insurance schemes launched by the government,” said the Assocham report. During the first decade of the sector’s liberalisation, there has been a consistent rise in insurance penetration from 2.71% in 2001 to 5.20% in 2009. However, since then, the level of penetration has been volatile and remained below the peak. It declined from 3.9 to 3.3% in 2014 due to certain regulatory changes and unfavourable market conditions. India’s insurance penetration as a whole in 2015 was 3.4%, against the world average of 6.2%. “Despite the gentle rise in insurance penetration which is percentage of insurance premium with reference to the Gross Domestic Product (GDP), it is still far below the global average,” the report observed. “The number of lives covered under health Insurance policies during 2015-16 was 36 crore which is approximately 30% of India’s total population. The number has seen an increase every subsequent year as 28.80 crore people had the policy in the previous fiscal,” it pointed out. As part of social security initiatives, the government has launched low premium insurance schemes both life and non-life in 2015, it said, adding that last year, it introduced crop insurance. With the objective of providing insurance cover to all, the government launched Pradhan Mantri Suraksha Bima Yojna (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) in 2015. PMSBY offers a renewable one-year accidental death-cum- disability cover of Rs 2 lakh for partial/permanent disability to all savings bank account holders in the age group of 18-70 years for a premium of Rs 12 per annum per subscriber. Besides, Pradhan Mantri Fasal Bima Yojana (PMFBY) launched last year to provide financial support to farmers suffering crop loss or damage arising out of unforeseen events will also add to insurance penetration, the report said. PMFBY has been approved for implementation in all states and Union Territories from Kharif 2016 season in place of National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). “PMFBY is a significant improvement over the earlier schemes on several counts and comprehensive risk coverage from pre-sowing to post-harvest losses are some of the salient points. A budget provision of Rs5,501.15 crore has been made for the scheme for the current crop season,” said Assocham president Sandeep Jajodia. Source - http://www.livemint.com

14.02.2017

USA - Use crop insurance as a risk management tool

Due to the continued tight margins in crop production for the 2017 crop year, some farmers are contemplating reducing their crop insurance coverage in order to save on premium costs. While there may be a small savings in the premium costs per acre, that decision could add considerable risk to the farm operation for the coming year. Many farm operators remember a few years ago when crop insurance coverage virtually guaranteed a profit from crop production in a given year. Crop price guarantees have changed, and that may be no longer possible; however, the risk protection provided by crop insurance coverage may be more important now than ever. The price guarantee for revenue protection (RP) crop insurance coverage for corn in 2013 was $5.65 per bushel. At that base price, a farm operator with a 180 bushel per acre actual production history (APH) yield could guarantee over $860 per acre with an 85% RP insurance policy, and over $810 per acre with an 80% RP policy. The average corn costs per acre on rented land in Southern Minnesota for direct expenses, overhead costs, and land rent, based on the University of Minnesota FINBIN web site, was approximately $870 per acre in 2013. The situation with soybeans and RP insurance coverage in 2013 was similar to corn. The 2013 price guarantee for RP soybean crop insurance of $12.87 per bushel. At that price guarantee, a farm operator with a 50 bushel per acre actual production history (APH) yield could guarantee nearly $550 per acre in 2013 with an 85% RP insurance policy, and approximately $515 per acre at 80% RP insurance coverage. The average FINBIN soybean costs per acre in Southern Minnesota for direct expenses, overhead costs, and land rent was approximately $540 per acre in 2013. The revenue guarantees per acre provided by RP crop insurance policies in 2013 virtually covered all direct and overhead expenses, as well as land rental costs, and in some cases provided a small profit margin. By 2015, the corn price guarantee dropped to $4.15 per bushel, which lowered the dollar guarantee with a 180 bushel per acre APH yield to near $635 per acre with 85% RP insurance coverage, and to just below $600 per acre with 80% RP coverage. The 2015 corn average expense for land rents, direct and overhead expenses still exceeded $800 per acre in many instances. Similarly, for soybeans, the RP price guarantee for 2015 was $9.73 per bushel, lowering the guarantee to just below $415 per acre with a 50 bushel per acre APH yield and 85% RP insurance coverage. The 2015 average expense for land rent, direct and overhead costs for soybeans was still near $525 per acre. For the 2016 crop year, the RP crop insurance price guarantees dropped even further to $3.86 per bushel for corn and $8.85 per bushel for soybeans; however, the average total costs of production for corn and soybeans also declined significantly from 2015 levels. It appears that the 2017 crop insurance price guarantee for corn should be similar to 2016 levels, possibly slightly higher, and should be considerably higher for soybeans, compared to 2016 price guarantees. As of February 10, the RP price estimates were $3.96 per bushel for corn and $10.20 per bushel for soybeans. Using those price guarantees, and a 190 bushel per acre APH corn yield, the resulting revenue guarantee would be near $640 per acre with an 85% RP policy and just over $600 per acre with an 80% RP policy. If we assume a 52 bushel per acre APH soybean yield, the resulting revenue guarantee would be just over $450 per acre with an 85% RP policy and near $425 per acre with an 80% RP policy. Estimated average 2017 production costs in Southern Minnesota for land rent, direct and overhead expenses are expected to be near $700 per acre for corn, and $460 per acre for soybeans. Some producers tend to overlook crop insurance as an important risk management tool, since the available revenue guarantees are lower than the cost of production in many situations. However, the overall financial risk in 2017 may be far greater than it was in back or 2013, when overall crop revenues were much higher. Crop insurance premiums for 85% RP coverage for corn and soybeans in many areas are much more favorable now than they were in previous years. Some producers have been able to increase their APH corn and soybean yields in recent years by using the trend-adjusted yield (TA-APH) yield endorsement for their crop insurance coverage. This has helped expand the insurance guarantee with only a minimal premium cost increase. In the 2016 crop year, many farm operators in South Central and Southwest Minnesota saw the benefits of having 80% or 85% RP crop insurance coverage for corn and soybeans. Some portions of this region received record rainfall during the 2016 growing season, and were impacted by severe storms with excessive rainfall events and hail, causing significant crop loss. In addition, the 2016 corn price dropped from a RP price guarantee of $3.86 per bushel in February to a harvest price $3.49 per bushel in October. This resulted for some substantial crop insurance indemnity payments for producers that incurred significant yield losses on corn in 2016, and had 80% or 85% RP crop insurance coverage in 2016. Producers with lower levels of coverage received very minimal 2016 indemnity payments. As we enter 2017, we continue to have very tight crop margins for the coming year, and in some cases negative margins on cash rental acres to cover land rents, direct and overhead costs. Before reducing crop insurance coverage for 2017, a producer needs to assess whether they want to take on the extra risk of the reduced revenue guarantee of the lower crop insurance coverage. Reducing from an 85% RP policy to a 75% RP policy will reduce the insurance guarantee by $70-$80 per acre for corn, and $50-$60 per acre for soybeans. Producers are also encouraged to discuss this with their ag lender, before finalizing their 2017 crop insurance decisions. Source - http://www.cornandsoybeandigest.com

14.02.2017

South Africa - Agriculture Minister, UN Food Organisation to Visit Farms Hit By False Armyworm

The Minister of Agriculture Senzeni Zokwana will visit farms in Limpopo with the UN's Food and Agriculture Organisation (FAO) on Monday in an effort to bring the False Armyworm plague under control. The pest, which causes massive crop loss, has been nibbling through South African crops as producers try to recover from two consecutive years of a drought brought on by the El-Nino weather system. The worm likes maize, sorghum, soybeans, groundnuts and potatoes. The department has asked chemical suppliers to urgently register products that can be used to control it. The FAO is working with South Africa in bringing the situation under control, although the DA has accused of Zokwana of not acting fast enough. According to the Famine Early Warning System (FewsNet), the southern African maize deficit is already estimated to be just over 5 million MT due to drought. With Zokwana will be FAO country representative Dr Lewis Hove and the province's MEC for agriculture Mapula Mokaba-Phukwana, the department said.

14.02.2017

Uganda - Kawanda to promote wilt resistant bananas

The National Agriculture Research Laboratories (NARL) Kawanda have announced plans to make use of farmer groups and platforms across the country to promote bacterial wilt resistant bananas that have been enhanced with Vitamin A. The varieties include Nakitembe and Kiwangaazi. This was revealed by Dr.Wilberforce Tushmereire, director of the NARL Kawanda on Friday, while meeting the state minister for cooperatives, Fredrick Gume Ngobi. “We have created technology pathways or farmer platforms to get the technologies to the community when we are through. This helps us to know if farmers have accepted them or not, so we can work backwards to address the problem,” said Tushemereire. The platforms will also be used to teach farmers best farming practices and marketing skills to empower them to decide their own prices and cut out the middlemen. Source - newvision.co.ug

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