14.02.2017

Australia - Floods cause grape growers multimillion dollar losses

Grape growers in Swan Valley, Australia are facing multimillion-dollar losses after vineyards in the valley were hit hard by floods. Hundreds of tonnes of wine and table grapes were wiped out after the Swan River burst its banks, drowning vines and infrastructure. Grape Growers Association of WA president, Darryl Trease, said he expected losses across the region to run into the tens of millions of dollars. Mr Trease said he was “gutted” yesterday after his entire crop in Herne Hill, due to be harvested next week, was ruined. The floods were so bad some residents were using kayaks to get around. “Anything that has gone under the flood has gone,” he said. “If the water hasn’t touched it, it will still rot with the humidity. “Every grower who is growing grapes would have been affected in one way or another.” “I'd call this the 100 year flood ... which we probably won't see again in our lifetime,” Vineyard owner Eric Lembo said. Source - thewest.com.au

14.02.2017

USA - 10 facts about corn rust

Flip through the 2017 DuPont Pioneer Agronomy Sciences Research Summary and one article may catch your eye. It’s simply titled "Southern rust of corn." If you were one of the unlucky people whose corn was nailed by southern rust late last year, you will be drawn into the story immediately. Even if your fields escaped, you’ll still find the report useful for managing corn disease in the future. Steve Butzen, agronomy information consultant for Pioneer, prepared the report. Here are 10 facts about rust in corn any producer ought to know. 1. Southern rust is a fungal disease. So is common rust, which occurs more frequently in the Corn Belt. However, when southern rust occurs, it is often more destructive than common rust, Butzen says. Yield loss estimates in southern Indiana in 2016 exceeded 50 bushels per acre, according to ag retailers. 2. Southern rust is favored by high humidity and temperatures in the 80s and 90s. That’s why it’s more frequent in Southern states. But when the wind blows spores into the Midwest in a summer like 2016, it can become an issue. Common rust prefers cool to warm and moist conditions, with temperatures of 60 to 77 degrees F. 3. Southern rust can spread rapidly. New infections may occur every seven days, Butzen reports. Individual fields can be damaged very quickly, and epidemics can spread over large areas. The southern rust outbreak in 2016 in the Midwest came primarily in late August and early September. 4. Fungicide applications may be warranted for southern rust. These can help minimize crop damage. Fields where farmers didn’t apply fungicides to save costs tended to get hit hardest in 2016. 5. Less photosynthesis occurs after leaf damage from southern rust. There is less functional leaf area after infection, Butzen explains. Photosynthesis is reduced, and less sugar is produced. 6. Southern rust can weaken cornstalks. Plants will use stalk carbohydrates to fill kernels once they can’t make enough sugar to keep up. Stalks are weakened, and the potential for stalk rot rises. 7. Where and when infection occurs matters. If the infection is confined to lower leaves, yield losses will be lower. In hard-hit areas in 2016, infection raced through the entire plant. 8. Planting date can impact yield loss from southern rust. Later-planted fields are at higher risk to southern rust damage, Butzen notes. 9. Rotation and tillage don’t help control southern rust. The disease spores don’t overwinter in the Midwest. That’s the good news for growers there. The bad news is a new batch can blow in the following season and move into the region. 10. Corn breeders screen for resistance to southern rust. Pioneer corn breeders screen both inbreds and hybrids for southern rust, Butzen says. Hybrids in the commercial lineup carry a rating for rust resistance, from 1 to 9, with 9 being most resistant on Pioneer’s scale. Most hybrids in the current lineup rate between 3 and 5, Butzen reports. That’s because genetic resistance to southern rust is limited. Source - http://www.americanagriculturist.com

14.02.2017

USA - Crop insurance program needs reform

The recent column, “$20 billion in farm subsidies doesn’t reach the poor, leaves them hungry” (Tribune, Jan. 20) demonstrates why we need to reform our nation’s current crop insurance program. This study highlights one reason why I continue to fight to make our farm programs, especially the crop insurance program, more responsive to the needs of Wisconsin family farmers, consumers and taxpayers. This year we will begin work on the next Farm Bill and crop insurance is at the top of the list of agriculture programs in need of reform. While crop insurance is a valuable risk-management tool for Wisconsin farmers, the current program is inefficient and costs taxpayers almost $9 billion per year. Also, a large percentage of crop insurance subsidies go to a few, big agribusinesses, at the expense of our family farmers The Congressional Research Service estimates that while the average premium subsidy for farms purchasing crop insurance is approximately $19,000 per farm, the top one percent of policyholders collect about 15 percent of total crop insurance subsidies. This is why we need to pass my bill, the Assisting Family Farmers through Insurance Reform Measures (AFFIRM) Act, which would save taxpayers more than $30 billion over 10 years and still support our family farmers. The bill calls for a cap of $40,000 in crop insurance premium subsidies per individual farm and eliminates these for individuals with a gross income more than $250,000. These reforms would end the practice of subsidizing millionaires and would bring daylight to the process so that taxpayers know how their money is spent. A farmer never knows if it will rain too much or too little, or if pests, disease and other invasive species will damage their crop. That is why crop insurance is important – it provides farmers with the risk protection they need. However, this risk protection must also protect the taxpayers. As we start work on the upcoming Farm Bill, I will continue to fight for crop insurance reform. Source - http://lacrossetribune.com

13.02.2017

Nepal - Agricultural insurance and microinsurance

Nepal, a landlocked multiethnic, multilingual, multi-religious country, is situated in the Himalayan mountain region. The country can be divided broadly into three ecological zones: the lowland (17%), the midland (19%) and the mountain or highland (64%). In the midland and highland regions, the terrain is rugged, rainfall is low and the poor-quality soil is difficult to farm. Agricultural landholdings per household in these areas are the smallest in the country. With a Gross Domestic Product (GDP) of NPR 1,599,172 million (per capita GDP NPR 60,119) and with 31% of the 26.6 million population of Nepal living below the poverty line, poverty still remains a major development problem in the country. The per capita GDP in the agricultural sector is even lower - approximately NPR 13,300 per agricultural worker. Over 30 per cent of Nepal’s population lives on less than NPR 1,330 per person per month. While the overall poverty rate in Nepal is 25 per cent, this figure increases to 46 per cent in the highland region and 45 per cent in the midland region. Poverty is much more severe in rural areas (35%) compared to the urban areas (10%). The total number of households in Nepal is 5.7 million and an average household has 4.7 members. Poor rural people in Nepal generally have large families, very small landholdings or none at all, and high rates of illiteracy. Population density in the country varies according to altitude – averaging more than 1,000 persons per square kilometer (km2) in the Terai region, about 300 persons per km2 in midland region and as few as 30 persons per km2 in the highland region. The Nepal’s economy is primarily agriculture based; about 80% of Nepal's population lives in rural areas and depend on subsistence farming for their livelihood. Nepal has 4.1 million hectare of agricultural land out of which 3.1 million hectare is under cultivation and 1.0 million hectare is uncultivated. About 80% of the rural population aged 15 and above is engaged in agriculture and 70% have holdings of less than one hectare; the holdings are too small to meet their subsistence requirements. Nepal is a natural disaster hotspot, with hazards increasing over the past three decades. The disasters damage their properties, interrupt their livelihoods and cause severe losses. In the past 30 years there were 78 natural disasters affecting over 5 million people and causing nearly US$ 4.0 billion damages to their property and assets. The last 2 major earthquakes in 2015 (April and May) left a trail of damages totaling over US$ 2.0 billion and death toll of around 6,200. Notable events are floods (2004, 2007 and 2009), earthquakes (1980, 1988 and 2015) and draughts (2009). Agricultural insurance and microinsurance landscape The insurance sector in Nepal is governed by the Insurance Act 2049 B.S. (1992) and Insurance Regulation 2049 B.S. (1993). Beema Samiti (BS) is the insurance regulator. The Insurance Act and the Insurance Regulation require segregation of life and non-life businesses and they spell out various prudential norms, good governance standards and operating rules for insurance companies. In connection with agricultural insurance and microinsurance, Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia (RFPI) has been working with BS since July 2013. There are 26 private insurance companies (17 non-life, 8 life and 1 composite) and one state owned company (composite) in Nepal. Of the private non-life insurance companies, all 17 offer livestock insurance and crop insurance. The state owned insurance company, Rastriya Bima Sansthan, does not offer any agricultural insurance or microinsurance products. The reinsurers in Nepal (all foreign companies) do not provide any reinsurance facility. In absence of reinsurance, three groups of insurers have formed a risk pool amongst themselves to share the cost in the event of any catastrophic events. Except for credit-life insurance initiated by MFIs and cooperative, the regulated insurers in Nepal do not offer any other microinsurance products at present. The main reason for this was the absence of microinsurance regulations until now. It is expected that the newly implemented Micro Insurance Directives 2071 and two life microinsurance products recently developed for them by BS will overcome this issue to a great extent. 2.1  Development of agricultural insurance In January 2013, GoN introduced CLID to encourage insurance companies to develop commercial agricultural insurance. CLID makes it obligatory for all non-life insurance companies to offer agricultural insurance. It offers guidelines for product design but insurance companies are also free to submit their own schemes for approval by BS. The livestock insurance under CLID covers cows, oxen, buffalos, yaks, sheep, goat, pig, chicken, swan and ducks, and the crop insurance covers bananas, coffee and tomatoes. BS has recently added bee, ostrich and mushroom in the list. For animals the premium payable is 5% of the sum assured. All risks are covered; in case of animals, 90% of the sum assured is paid in the event of death, and for permanent total disability, 50% of the sum assured is paid. Deaths not reported within three days, missing livestock and theft are excluded. For commercial birds the premium payable is 6% and for domestic birds it is 5%. Risks covered are fire, lightning, flood, inundation, landslide, subsidence, storm, hailstorm, snow, frost, illness and diseases. GoN pays 75% of the premium as subsidy. The subsidy was introduced in June 2013. Initially the subsidy was 50% and this was raised to 75% in August 2014. The maximum sum assured per person/entity for this subsidy program is NPR 10 million. GoN allocated NPR 135 million in the budget for subsidies in the fiscal year 2013-2014; however, its utilization is extremely low as the insurance companies are struggling to increase the outreach of agricultural insurance. The reasons for this are covered under challenges section. The government owned Deposit Insurance and Credit Guarantee Corporation (DICGC) has been offering livestock insurance in the form of guarantee since 1987 to protect the loans of small borrowers of banks, FINGOs and SACCOs. DICGC is regulated by Nepal Rastra Bank, the central monetary authority. It charges 8% premium; 50 % of the premium is subsidised by GoN; this scheme is separate from that for insurance companies. 2.2  Development of microinsurance In June 2010, BS drafted the Micro Insurance Act (Act) and forwarded it to the Ministry of Finance (MoF) for approval. The Act incorporated numerous prudential norms and corporate governance rules for microinsurance business. The Act also contained three major policy level changes – pension schemes, microinsurance and establishment of a reinsurance company. There were political instabilities in the country at that time and the Act was not approved by MoF. In March 2011, BS formed a committee to identify suitable microinsurance products and the best distribution channels to reach the low-income households in rural and urban areas. The committee recommended six microinsurance – agriculture, micro health, accident, self-employment, life with endowment and term life. In July 2012, BS developed a new draft Micro Insurance Regulation and forwarded it to MoF for approval. MoF did not approve it, and BS decided to regulate microinsurance through Directives in future. In April 2014, BS completed the draft of the MID 2071 and submitted this to its Board of Directors for approval. This was approved in October 2014 and it is now operational as MID 2071. The directive lists six non-life and four life microinsurance products. MID covers both microinsurance and agricultural insurance. The issues relating to agricultural insurance have been discussed under Agricultural Insurance section above. MID 2071 defines microinsurance, life microinsurance and non-life microinsurance; it identifies microinsurance products, caps the sum assured and the premium payable, states commission payable, claim settlement procedure and reporting requirements for the insurers. It also describes microinsurance agents’ qualifications, training and remuneration. One of the commendable features of MID is that it defines ‘microinsurance agent’ and under that allows NGOs, FINGOs, self-help groups and MFIs to act as microinsurance agent. Many of the above details are not given for Whole Life Micro Life Insurance product. MID 2071 makes it mandatory for every regulated insurer in Nepal to offer microinsurance. BS has developed a term life micro insurance and an endowment life micro insurance product for the insurers.  Gaps and challenges Both CLID and MID covers agricultural insurance and there are discrepancies between coverage offered by them. MID only refers to livestock insurance and crop insurance, without mentioning which crops and which animals are covered; it might be misconstrued that it covers all crops and all animals. CLID goes in more details and specifies the crops and animals covered. MID does not mention whether it overrides CLID or both are applicable. Unless these issues are clarified immediately, it might give rise to confusions in the future. 3.1  Gaps and challenges in agricultural insurance Commercial insurers are facing several challenges with agricultural insurance in Nepal. Moral hazard in agricultural insurance is very high and the cost of verifying a claim is very expensive. It is hard to determine whether the losses are due to factors outside of the farmer’s control or the farmer did not do his best to get a good harvest by using quality inputs like seeds and fertilisers, and appropriate timing of planting. The insurance companies have difficulties evaluating the risk attached to crop production. There are other issues; accurate assessment of input cost for different crops, and crop losses in different regions are not readily available. Some of the terms and conditions imposed by BS, such as the insured perils, capping of the sum assured, capping of the commission etc. put a lot of restrictions on the insurers. Reinsurance companies operating in Nepal do not offer reinsurance coverage for agricultural insurance. Agricultural insurers, therefore, are finding it difficult to scale their business and are reluctant to enter this market in a big way as there might be a huge liability in the event of a natural disaster. Only 2 out of 16 non-life insurers are currently offering crop insurance and 12 are offering livestock insurance. The payout on crop insurance is on the basis of input cost, which is not considered to be a “value for money” proposition by the farmers; they prefer “yield basis” payout. A large number of farmers, especially the rice farmers, cannot afford the insurance premium. As a result, the demand for crop insurance is quite low amongst the farmers. CLID itself is not sufficient to implement agricultural insurance. BS still needs to develop agricultural insurance rules and regulations. The directives need to be improved further for the effective implementation and monitoring of agricultural insurance. BS was set up to supervise commercial insurance industry; there is lack of agriculture insurance expertise at BS (actuary, statisticians, underwriters, risk analysts and loss assessors etc.). Commercial insurers do not have distribution network in rural areas and therefore are facing difficulties in selling agricultural insurance to rural farmers. Communication to remote areas is expensive and time consuming. Agricultural products vary from place to place. Also the risks attached to the products vary according to climate and topography. The current design of the products in CLID does not recognize these variations. The premium and the compensation packages designed in CLID are uniform throughout the country and need to be revised according to climate, area and topography. There is no livestock accident and mortality policy or table for livestock deaths in the country. The risks covered under CLID are almost comprehensive coverage, making it very difficult for the insurers to comply with. Some of the risks covered are catastrophic risks, exposing the insurer to the possibility of a huge claim, which, in the absence of reinsurance facility, could financially damage the insurer. Though the farmers are aware of the government scheme for crops and livestock, they find the schemes overwhelmingly complicated and difficult to understand. To solve this issue, the Ministry of Agricultural Development (MOAD) and the BS need to implement training and awareness raising program. Though livestock insurance is not new in Nepal, it is a very new activity for private insurance companies. Before 2013, none of them were involved in this sector and they lack expertise in agricultural risk management. However, claims data and risk experience of DICGC are available for them and can be used to assess the risk involved in this sector. The insurers see livestock insurance as a more valuable product and easier to monitor than crops. On the other hand, crop insurance is very new in the country; the industry and the farmers do not have previous experience to go by. Before CLID, a few MFIs, cooperatives and seed suppliers offered informal crop insurance in a very limited way. Crop insurance has not as yet made any appreciable inroad in Nepal. The two insurers that started offering crop insurance after CLID have less than 100 policyholders between them. 3.2  Gaps and challenges in microinsurance regulation There are several gaps in the MID. It does not allow an individual to act as a MIA. This would prevent the insurance companies to employ their existing insurance agents to sell micro insurance. The MID also has not included “cooperatives” in the list of organisations allowed to be appointed as MIA. However, BS allows cooperatives to be appointed as MIA and has confirmed that it will continue doing so in the future. MID, as it stands now, is not sufficient to implement microinsurance fully. BS still needs to develop microinsurance rules and regulations. The directive needs to be improved further for the effective implementation and monitoring of microinsurance. There is no obligation on commercial insurers to sell any minimum number of policies per year to socially backward and economically deprived rural community. The MID does not identify who is responsible for supervising the MIA. Under the existing regulations, BS is responsible for supervising the MIAs. In view of the large number of MIAs BS would be required to supervise under this provision and its human resources constraints, BS should make each insurance company responsible to supervise its own MIAs. The number of people to be covered under Health Family Micro Insurance is not identified. The expression “family“ is not defined. Details of sum assured, premium, commission, minimum and maximum age are not defined for the product “Whole Life Micro Life Insurance“. These gaps need to be dealt immediately otherwise it will only cause confusion in the market. BS was set up to supervise commercial insurance industry; there is lack of microinsurance expertise at BS (actuary, statisticians, underwriters, risk analysts and loss assessors etc.). This should be addressed through extensive capacity building at BS. Source - https://www.linkedin.com

13.02.2017

India - Government warns banana producers about new pest

A new variety of pest has been plaguing coconut and banana producers in India, leading the Agriculture Department to warn farmers of both crops about the pest and methods to control it. The Rugose Spiralling Whitefly (Aleurodicus rugioperculatus) was found to be the culprit. The pest deposits its eggs on the underside of the leaves of coconut and banana and damages the crop. The droppings of the fly also cause damage to the leaves, resulting in less productivity from the crop. The pest was identified by P Raghunath of the College of Agriculture, Vellayani. This species of whitefly is endemic to Florida. He urged coconut and banana farmers to be vigilant and take comprehensive precautionary measures. Leaves on which the pest attack is severe should be cut and destroyed. However, agriculture officials warned farmers against using any form of chemicals even on nearby crops. Source - newindianexpress.com

13.02.2017

Spain - Destroys 2,000 fruit trees to fight plant disease

The regional government of the Balearic Islands has destroyed around 2,000 fruit trees in an attempt to stop the spread of Xylella fastidiosa, a plant disease which threatens cherry trees and oleanders. The disease was first discovered in the area back in October of 2016 in Porto Cristo. Since then the government has increased efforts in order to protect thousands of hectares of almonds, olive trees and vineyards. Even with the increased measures on 12 January three new cases of the disease were found leading to the destruction of the affected trees. Source - spanishnewstoday.com

13.02.2017

Australia - Grains institute and MPCI

The WA grains industry would be further strengthened by the establishment of a grains research and development institute, and government support of Multi Peril Crop Insurance (MPCI) policies, according to WAFarmers. The two issues form part of the WAFarmers Policy Platform nine-point Wish List for the upcoming State Election. WAFarmers President Tony York said a grains institute would attract external, world-class research partners and projects into WA, giving the state a home-ground advantage for research outcomes. “WAFarmers, in conjunction with a number of grains industry and research organisations in WA through the Grains Industry Group, has been unanimous in their support for the development of a grains research and development institute,” Mr York said. “Given the recent announcement by the current State Government of $54.4 million for grains research and development until 2020, the next phase in implementation is to establish an advisory council or interim board to further develop and implement a business case. “The institute model would be future proofed, and independent of bureaucratic factors that most government departments must function within – staff hiring freezes, budget cuts, and policy changes – to ensure that grains research in WA is stable and vibrant into the future.” Mr York said State Government support for MPCI policies by way of rebates for a three-year period would also support the industry long term, given the state only currently receives duty on a low number of active policies, which approximates to about 10 in number. “Agricultural businesses are vulnerable to the effects of weather; during times of hardship any enterprise can be crippled, so WAFarmers has been a keen advocate for the uptake of MPCI policies in WA,” he said. “Should a farmer’s crop be affected by severe weather, the flow-on effects are keenly felt by the entire supply chain, local businesses and community, as the farmer reduces local spending and relocates to a city or larger town, never to return. “For policies to become cheaper, the market needs to be stimulated so the under-writers can spread the risk across a larger number of policies. “By fostering the uptake of the policies across the agricultural region, it reduces the reliance on concessional loans and leaves public funds available for better use, creating another revenue stream for the state by having it collect duties from a larger number of MPCI policies once the three-year concession period has concluded. “Given WA grain exports about 80 per cent of its annual grain production to more than 50 countries worldwide, and that the exports generate more than $4 billion (five year average) for the state economy each year, it is critical that the state capitalises on this enviable position and makes changes to strengthen this ever-growing industry.”  Source - http://www.insuranceandrisk.com.au

13.02.2017

Australia - Crop insurance market receives Government boost

The outlook for multi-peril crop insurance has received a boost following the announcement of Government plans to introduce research grants for data collection projects to assess the viability of the product. Grants of up to $100,000 are set to be awarded following an announcement made last week by Queensland minister for agriculture and fisheries, Bill Byrne. Byrne noted that while crop insurance products currently have a low take up rate in Queensland and across Australia, much of that has been attributable to a lack of data that insurers can use to assess and price risk, leading to higher premiums. “These new research grants of up to $100,000 will support projects that collate and/or interpret agricultural production data on a regional or industry/crop specific basis,” Byrne said. “This data will then be publicly available and could be used in the assessment and development of risk management products such as crop insurance.” The Government has consulted with both the insurance and agriculture industry and it came to light that while data exists at the individual producer level, this has not been collected and collated to provide aggregate data. Research grants will aim to address this issue with eligible applicants invited to submit proposals for funding of research projects. A panel of officers from the Department of Agriculture and Fisheries will make recommendations on the successful applicants, who will then submit a report, alongside their data, which will be kept in the public domain. This data can then be used by the insurance industry to help develop products and solutions for specific needs. Source - http://www.insurancebusinessmag.com

13.02.2017

USA - Focusing on risk in a crop insurance plan

After reviewing your balance sheet and estimating input costs, your crop insurance plan should focus on risk. “The difference between your total cost of inputs and your guarantee depends on how much risk you and your team feel is best,” said Chris Coffey, Assistant Vice President – Crop Insurance, Farm Credit Mid-America. “Communication with your crop insurance team is crucial. By providing accurate information on your operation and your plans, your team can develop more accurate estimates for spring guarantees. For example, since your coverage is based on a 10-year production history, it’s likely your guarantees will increase due to this season’s higher-than-average yields.” With crop input costs and cash rents, having a defined safety net helps you prioritize input investments and identify potential increases in ROI. When it comes to crop selections, modeling scenarios with your crop insurance specialist will help you take advantage of grain prices by determining which crops should generate the greatest revenues. For grain marketing, knowing the base level of production you need to meet and the guarantee you will set allows you to contract grain at prices you find favorable. “It’s important to partner with a team of experts to make sure you’re well informed during this process and we suggest enlisting a diverse group that includes a loan officer, a crop insurance specialist, and outside experts such as a grain marketer and insurance provider,” Coffey said. “The added visibility from such a team is crucial in attaining operational profitability.” Source - http://ocj.com

10.02.2017

India - Role of private sector in building an efficient agricultural chain

Despite several challenges, agriculture in India has been able to produce enough food to feed the burgeoning population; from feeding about 31.86 crore people in 1951 to feeding more than 125 crore people in 2016. Improvement in agricultural technologies and management practices post green revolution has helped the cause. However, only irrigated and high-potential rain-fed areas could actually reap the benefits of green revolution. More than 15 percent people still remained undernourished in India in 2015. Per capita consumption of cereals and pulses (main source of protein in Indian diet) has declined over the years and inefficiencies in the agricultural value chain further inhibit the benefits of sufficiency to reach the Indian populace uniformly. Agricultural value chain comprises of different stages, including supply, production, processing, transportation, trading, marketing, and export. Most of these are interlinked; output of one feeding as an input to the other. Disturbance in any of the above cogs misbalances the whole wheel of value chain. Physical loss of produce during storage and transport, inadequate marketing infrastructure, lack of accurate and timely information, multiple intermediaries, and lack of access to institutional credit among other factors keep the value chain unnecessarily long and fragmented. With so many weak links, making the agricultural value chain robust remains a challenge. Over the years, public sector has played the key role in agriculture in India from setting up guiding policies to providing goods & services such as fertilizers, extension and marketing. But in an expanding and diversifying economy like India, private players hold potential to mobilise additional investments in infrastructure and R&D as well bring in the desired efficiencies in the agricultural value chain through superior service delivery. The National Agricultural Policy 2000 also envisages promoting private participation in agriculture through contract farming, land leasing arrangements, direct marketing and setting up of private markets to allow accelerated technology transfer, capital inflow and assured market for crop production. Private sector can offer their services in multitudes of ways throughout the agricultural value chain. Conducting research, introducing improved technologies, provision of credit through cooperatives and self-help groups, creating infrastructure (for seeds, fertilizers & pesticides, transportation and processing), helping with extension services, passing on accurate and timely information, and diffusing crop insurance are key areas where private sector can improve their engagement further. Private sector has already begun engaging in contract farming with farmers. Establishing this farm-firm linkage could help provide credit, assured market, remunerative prices, quality check and extension services, particularly to small landholders. It becomes important to identify the actual cultivator of the land to offer them the benefits of inputs and government schemes such that they could transition from subsistence farming to commercial agriculture. Absence of or weak land tenancy laws in India has resulted in minimal land transfer, thus leaving the already fragmented land fallow on most occasions. A transparent leasing law is essential to push consolidation of land holdings. Since 1960s, research and development has found a major push in India. High yielding seed varieties, development of less water intensive crops, pest resistant crops, genetically modified crops, biofortification, improved storage, processing & logistics and labor saving technologies have been the key areas of research over the years in which the private sector can contribute further given proper encouragement and incentives from the government. Access to institutional credit without cumbersome procedures is another area where assistance from private sector can go a long way in protecting agriculturalists from the clutches of money lenders charging high interest rates. The public and private sector should work together to diffuse the new Pradhan Mantri Fasal Bima Yojana in response to crop loss due to natural disasters. Private players can contribute towards weather prediction services and accordingly offer crop weather advisories to minimize weather induced risks. To allow for enhanced private sector contribution in agricultural marketing and processing, there is a need to liberalize agricultural markets and remove barriers. Reforms in existing policies and statutory arrangements, such as processing industries buying directly from farmers and farmers entering into contract with manufacturers to sell their produce, would go a long way in incentivizing trade in agriculture. Involvement of private players at this stage of value chain could help in reducing wastage and post-harvest losses of agricultural commodities as well. This requires better implementation of the model APMC Act, 2003 along with enhanced market access through the pan-India electronic agricultural trading portal, National Agricultural Market (e-NAM). The public and the private sector can work together in public-private partnership mode to disseminate technology, knowledge and inputs to agriculturalists. On one hand, public extension system can set a competitive stage through policies and programmes, while on the other, private extension system can undertake the projects. Amidst the dwindling number of farmers and fragmented landholdings, steps must be taken to make farming more profitable – enabling a transition from subsistence farming to commercial agriculture. Agriculture needs to be seen within the framework of an intricate and holistic value chain with the interlinked elements. To improve the state of agriculture in India, the time is ripe to incentivize private sector in order to gain from their abilities. Better implementation of the model APMC Act 2003 across the states, building new institutions to make use of private sector’s R&D capabilities, removing entry barriers in agriculture marketing and processing, engaging more in public private partnerships and creating transparent land leasing laws are some of the ways the government should seek to enhance participation of private sector in agriculture to improve efficiency of the value chain. After all, a well-functioning agriculture sector is a prerequisite for the economic growth in an agri-based economy like India. Source - http://zeenews.india.com

10.02.2017

Australia - Australian garlic farmer loses 40% of her crop

Some garlic growers in Australia are reporting crop losses this season, with some growers losing 40 per cent of their crops due to challenging conditions. John Oliff, who grows garlic at Freshwater Creek, near Ocean Grove, said garlic growers along the coast of NSW had a lot of trouble with humid weather, while growers around the Murray had losses due to wet spring weather. “We had a lot of rain and cloudy weather in spring and that creates side shooting,” he said. Kirsten Jones, who grows garlic with her husband at Mirboo North in south Gippsland, said she had lost about 40 per cent of her crop. “We thought after last year being very dry it was going to be a great season but we have lost about 40 per cent of our crop and probably did well compared to others,” Ms Jones said. “We would normally expect to lose about 10 per cent of our crop, just with the way things go, but 40 per cent was a lot more. Source - weeklytimesnow.com.au

10.02.2017

India - Govt approves revenue insurance scheme for plantation crops

The commerce ministry has approved the pilot Revenue Insurance Scheme for Plantation Crops for protecting the growers from the risks such as yield loss, pest attacks and income decline caused by fall in prices, Parliament was informed today. The Price Stabilization Fund (PSF) Scheme, 2003 was closed on September 30, 2013 and Revenue Insurance Scheme for Plantation Crops (RISPC) is an improved form of the PSF, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha. She said that RISPC was approved on September 16 last year and will be implemented on a pilot basis for two years covering tea, coffee, rubber, cardamom and tobacco in eight districts in West Bengal, Kerala, Karnataka, Andhra Pradesh, Assam, Sikkim and Tamil Nadu by the commodity boards. "Department of Commerce has recently approved the pilot RISPC for protecting growers of plantation crops from the twin risks of yield loss due to adverse weather parameters, pest attacks etc and income loss caused by fall in international/domestic prices," she said. On the basis of performance of the pilot project, the minister said, the scheme will be considered for extension to other districts. Replying to a separate question on industrial corridors, Sitharaman said as per the institutional and financial framework for the development of these corridors approved by the government, land acquisition/ pooling/ procurement and making it available for projects is the responsibility of the concerned state. Citing example of Delhi Mumbai Industrial Corridor, the minister said for the Ahmedabad Dholera Special Investment Region in Gujarat, 1706.13 hectares of land has been transferred by the state to Dholera Industrial City Development Ltd. For the Visakhapatnam Chennai Industrial Corridor (VCIC), the land under possession is 1,887 acres and the land under acquisition/alienation is about 24,056 acres, she added. Source - http://timesofindia.indiatimes.com

10.02.2017

Australia - Farmers who took up crop insurance say it helped them sleep at night

Farmers who took up multi-peril crop insurance claim it helped them sleep at night, not worrying about a third failed harvest. The Federal Government wants farmers to take up risk management tools like insurance and for the second year is offering a $2,500 rebate on the financial health check required to take up multi-peril insurance. Farmers say it should be expanded, to include State Government waivers on stamp duty. In the US, the Government now helps farmers take out insurance on their income. The Australian Government's nudging is part of "supporting the development of a more diverse and mature agricultural insurance market, including multi-peril crop insurance," said a spokesperson for Barnaby Joyce, Minister for Agriculture. Bernard Lindsay, a cropper in the Wimmera could not afford a third failed crop. "After two really bad years I wasn't prepared to take another hit," Mr Lindsay said. In the end 2016 produced bumper crops of canola, wheat and legumes, but he could not be certain of that outcome. "I slept pretty well knowing that if something went pear-shaped, I'd be right to go another year," he said. "As it was the season was terrific, but there were farms that got touched up with frost and wet. "It gave me peace of mind." Mitchell Moore farms at Tallygaroopna in Victoria and he is also a plumber, which can be a secure income until you injure yourself. So he likened it to covering himself for not being able to work his day job. "It pretty much insured us for any costs of our business," Mr Moore said. "It cost us about $6,000 to $7,000, which would cover us for 100 per cent of our income. "Our bank manager likened it to income protection too. "Yes, we just think it's a no-brainer." Across into South Australia, cropper Jim Maitland at Clare, said he was carrying a big debt, so taking up multi-peril crop insurance allowed him to enter risky forward-selling. "The catalyst was probably there was a moment in time when we could forward-sell lentils, at a decile 10 price, around $1,000 a tonne," Mr Maitland said. "So we got on the front foot and sold 73 per cent of our three-year average. "That was even before we'd planted it. So we potentially had a large exposure to a failed pulse crop. "It was $14 per ha cost, with all other input costs at $550 per hectare. "$14/ha is not even another pass to spray for fungicide." Kelvin Hepworth at Donald in Victoria paid $35,000 for $360,000 guaranteed income but it took the stress out of the year. "Well this guaranteed me, if something went pear-shaped, like it did for the two years beforehand, I was going to make my repayments," he said. Those offering the different Index insurance said their product was cheaper, and more immediate. Index insurance does not attract GST or stamp duty, and for a few thousand dollars could cover today's hot weather as it dries out the soil moisture. Suffice to say crop insurance of all types are set to play a bigger role in the future. "I think it could, as costs are getting higher and higher, if climate variability keeps getting worse," Mr Lindsay said. The Minister's office said "this [rebate] approach includes supporting adoption of a suite of risk management tools, including insurance and the ability to use Farm Management Deposits as farm loan off-sets, with the ultimate aim of strengthening farm businesses and reducing the reliance on government support." Source - http://www.abc.net.au

10.02.2017

India - Vijayapura sees rise in farmers applying for crop insurance

Hoping for a better monsoon last year, Shivasharan Nidoni, a farmer from Bijjaragi village of the taluk, had not applied for insurance. “It was a big mistake which I will not repeat this year and I will also advise other farmers not to commit a similar mistake. I have applied for crop insurance this year,” he said. The prevailing drought and uncertainty of climate has prompted the farmers to apply for crop insurance in the district, which has crossed the set target. According to the officials of agriculture department, they have recorded 103 % registration for crop insurance. The total number of farmers who have applied for the scheme has already reached 1,16,887 for rabi season, mainly for crops such as jowar and bengal gram. The officials also said that the failure of rain for rabi has also forced the farmers to apply for insurance this year. The changes in crop insurance norms have also encouraged farmers to apply for insurance as the new norms promises higher value against the failure of crop. “The farmers could now get up to 90 % of money against the crop loss. This brings a good news for the farmers mainly of arid and drought prone areas such as Vijayapura,” said B. Manjunath, the Joint Director of Agriculture Department. He said that the department took up extensive awareness programme in rural area to educate the farmers on new crop insurance scheme. Mr. Manjunath said that the district administration and the Revenue Department are educating farmers. “We adopted several traditional methods such as street plays to spread the awareness on the insurance, which has helped the farmers to apply for the scheme,” he said. Source - http://www.thehindu.com

10.02.2017

USA - Farm Credit Services Report Touts Crop Insurance

Crop insurance saved nearly 21,000 jobs in four states during one of the worst droughts in two decades, according to a report from Farm Credit Services of America. The 20-page paper breaks down the history of the crop insurance program from the start in 1930s, with the Great Depression and Dust Bowl, to expansions in the 1980s and 1990s after a string of unbudgeted disaster relief bills strained federal coffers. The paper says farmers have plenty of "skin in the game" when it comes to crop insurance, and their participation helps minimize risk exposure for taxpayers. FCS provides a step-by-step guide to the public-private partnership that makes the crop insurance program efficient when it comes to covering losses. It also highlights key points including the fact that private companies sell the insurance products and that farmers, like all other insurance customers, pay deductibles and premiums. But the story of the drought of 2012 is where the paper really shines in showing just how important crop insurance is to keeping America's food, clothing and fuel supplies secure. The drought was a devastating hit in a year that was supposed to be favorable for planting. Corn, soybean and hay production declined throughout that summer as the drought intensified. Corn production was down more than 29 percent and soybeans fell 6 percent. The low yields were coming on a year that started with low beginning stocks, the report notes, and tight U.S. and global supplies. Projected prices rose in anticipation of short supplies. Farmers faced low yields and ended up facing big expenses to buy crops at higher prices to fulfill forward marketing obligations and to feed on-farm livestock. Crop insurance helped cover the shortfall and saved 20,900 jobs across Iowa, Nebraska, South Dakota and Wyoming, with an annual labor income of $721.2 million, according to the report. That's money that ended up in Main Street shops and restaurants. Money that allowed farmers to continue to pay the bills and get ready for the next season even after a disaster like the drought of 2012. And best of all, farmers didn't have to go to Congress for an ad-hoc relief bill – just like Congress designed. "Crop insurance kept me farming," farmer Denny Marzen, of Iowa, said in the report. "It's a business tool I use with my marketing program and to help me deal with Mother Nature." Farmers talk openly about the devastating drought of 2012 and why crop insurance is so important in helping them survive to plant again in 2013. Source - http://hayandforage.com

09.02.2017

Philippines - Crop insurance payments reach P1.6 billion

About P1.6 billion in crop insurance claims have been paid to farmers and fisherfolks last year, according to initial reports from the Philippine Crop Insurance Corporation (PCIC). In a report to Agriculture Secretary Emmanuel Piñol, PCIC President Jovy Bernabe said his office has paid P1.6 billion to claimant farmers and fisherfolk for damages to standing crops and properties caused by the El Niño weather pattern and several typhoons and flooding that occurred in 2016. PCIC noted that this only the second time it has shelled out indemnity payment at the billion-peso level. The indemnity payment was 16 percent more than the P1.379 billion paid in 2015. The payment allowed 234,681 farmers and fisherfolk to restart their operations after farm damage, minimize financial losses, and prevent significant disruption in the supply of food in the market. These farmers and fisherfolk were among the 1.075 million insured by the PCIC in 2016. Collectively, the insured farmers operated 919,814.81 hectares, an expansion of 7.52 percent from the total farm area of 855,504.53 hectares covered by PCIC’s services in 2016. In terms of premium income, the PCIC generated P2.587 billion, while its total amount of insurance cover reached P41.002 billion. Source -  http://newsbits.mb.com.ph