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12.01.2017

India - All district to be branded drought-hit; steps to lessen ryots’ strain

Grappling with the aftermath of a miserly monsoon that crippled farming sector across the State, the Tamil Nadu government has decided to declare all districts drought-hit, and announced a slew of measures to lessen the strain on  farmers, including waiver of land tax, rescheduling short-term loans mid-term, disaster relief assistance and crop insurance. A detailed memorandum will be submitted to the Centre seeking financial assistance to protect people of the State, which has been hit by a severe drought, Chief Minister O Panneerselvam said here on Tuesday. This was decided at a high-level meeting chaired by the Chief Minister late on Monday at the Secretariat, wherein reports filed by committees, comprising senior ministers and IAS officers, after studying the crop loss in all districts, were discussed. With the number of farmer deaths steadily climbing, the Chief Minister said Rs 3 lakh will be provided to the families of 17 of them who committed suicide in the last two months, though the reasons were varied. Also, district Collectors have been directed to submit detailed reports on the other deaths reported so far, many of them ostensibly due to drought and resultant crop loss. According to the disaster relief guidelines, farmers who faced a yield loss above 33 percent would get relief assistance. For paddy and other irrigated crops, Rs 5,465 per acre would be given, while Rs 3,000 would be given to rain-fed and mulberry crops. Similarly, for long-term crops, Rs 7,287 would be given per acre. Since farmers who had insured their crops could claim insurance, crop cutting experiment to estimate crop yield rates would be completed soon. Since relief alone is possible as per the disaster guidelines, the State government had already insured the crops and had paid Rs 410 crore towards premium for crop insurance during the current year, a statement said. Farmers who had incurred 100 percent crop loss in paddy cultivation would receive compensation ranging from Rs 21,500 to Rs 26,000 per acre from insurance companies depending on the district. For delta districts, Rs 25,000 could be claimed for 100 percent loss of crops; Rs  20,000 for 80 per cent crop loss; Rs 15,000 for 60 per cent crop loss; and Rs 8,250 for 33 per cent crop loss.  For other districts, compensation would be paid to those farmers who had incurred above 33 percent crop loss. Similarly, farmers in each district would get the insurance claim specified for the respective districts. The claims differ from crop to crop – Rs 50,000 for turmeric, Rs 45,000 for sugarcane, Rs 20,000 for maize and Rs 12,000 for pulses per acre would be given. To provide employment opportunities to agricultural labourers who have been affected by drought, the number of working days under the Mahatma Gandhi National Rural Employment Guarantee Scheme would be increased from 100 days to 150 days. Besides, works like desilting lakes, ponds and canals would be undertaken at a cost of Rs 3,400 crore. The Chief Minister said to mitigate the scarcity of fodder for cattle stock caused by drought, programmes at a cost of Rs 78 crore would be implemented to provide fodder. Further, works worth Rs 160 crore would be implemented to augment drinking water supply in urban areas. Similar measures would be implemented in rural areas at a cost of Rs 350 crore. To augment water availability to forest areas to cater to the needs of wild animals, Rs 5 crore would be allocated. Through the Public Works Department, water resources would be improved at a cost of Rs 25 crore. Source - http://www.newindianexpress.com

12.01.2017

India - Drought in the South

The fact that Karnataka, Kerala and Tamil Nadu are in the grip of a severe drought has somehow not received the national attention it deserves. Both the south-west and north-east monsoons have failed these States, raising fears of farm distress. Rabi acreage under rice, oilseeds, coarse grains, maize and pulses has fallen steeply in Karnataka and Tamil Nadu. The Kerala government expects a major drop in winter rice output, with over 7,000 hectares of farmland in Palakkad district and another 4,700 hectares in Thiruvananthapuram district being affected. Banana and coconut crops have suffered extensive damage. A 62 per cent deficit in the north-east monsoon in Tamil Nadu, the primary monsoon in the State, has led to its paddy acreage dropping by a third; this has prompted the State government to announce relief measures such as waiver of land tax, per acre compensation and more relaxed loan repayment terms. In Kerala, the north-east monsoon was short by 61 per cent, a double whammy after the 34 per cent deficit in the south-west monsoon. A similar situation applies to Karnataka, which has seen three consecutive deficit years. While the overall picture on the rabi front points to a 6 per cent increase in acreage, New Delhi should not lose sight of the contrary picture in the southern States, and its socio-economic impact. We've unfortunately seen a familiar sequence of events unfold in recent times, of Congress-ruled Karnataka accusing the Centre of discriminating against it with respect to drought relief. A similar wrangle broke out between Punjab (where the Shiromani Akali Dal, an ally of the BJP, is in power) and New Delhi in 2015, when untimely rain and hailstorm ravaged the wheat crop. The larger issue here is the lack of institutionalised mechanisms to deal with crop loss, despite the Pradhan Mantri Fasal Bima Yojana (PMFBY) coming into force. The fact that less than a third of the affected area in Karnataka this year is covered by insurance (a pointer to inadequate financial inclusion, since the coverage is bundled with crop loans) tells us why political discretion plays such an important role in an agriculture crisis. Crop insurance needs to be comprehensive in scope to address crises arising out of increasingly capricious weather. Apart from the PMFBY (which offers a 90 per cent subsidy on the premium to be shared equally by the Centre and States), the farmer should have a bouquet of private and public sector insurance products to choose from, just as an urban consumer does, covering a range of risks. Weather-based insurance can provide expedient, even if less than comprehensive, relief — whereas yield-based products wait for the results of crop-cutting experiments. Insurance for price and pesticide-related risks would find takers. To prevent fraudulent claims, a no-claim bonus can be introduced as well. For too long have farmers been at the mercy of the government machinery, even as industry and services have moved on. Source - http://www.thehindubusinessline.com

12.01.2017

Australia - New insurance focus on frost

WHILE Australia is awash with grain this harvest, the manager of a climate risk management business is pointing out that even in a record season, climatic woes have drastically impacted some growers' returns. Jonathan Barratt, chief executive of CelsiusPro, said frost in Western Australia had significantly reduced yields while floods took the top end off production in central New South Wales. "Even this season, with the national crop breaking records, regionally there are issues with climatic stress," he said. Mr Barratt said the issues highlighted the need for growers to be able to take out risk management. His company provides weather certificates, which act in the same manner as crop insurance, with the advantage they pay out faster and can be tailored. In terms of specific risk he nominated frost as a problem the grains industry needed to monitor. "Traditionally wet years have not seen problems with frost, but through WA and to a lesser extent South Australia, there were frost issues. "WA saw stem frost, with temperatures below 2.5 degrees Celcius, while head frost caused some growers problems in SA. "As a result we are busy working on a frost insurance product that is affordable and easily managed. "We have thrown this around and for us, index insurance is the only viable option." Mr Barratt said a trial of a frost index, conducted in southern New South Wales, had worked well and said the company intended to launch a Frost Cover for the 2017 winter crop. The frost index insures the grower for stem frost and frost burn. Mr Barratt said the main advantage of the cover is that it was a combination of cumulative temperatures below 0((xB0))°C and a one-off payment should the temperature drop below -2.5((xB0))°C over a risk period. He said growers could choose the level in degrees when the cover would start and take individual certificates or group them all in the one policy. The readings for payouts are based on approved interpolated data provided by the Bureau of Meteorology (BOM). Mr Barratt said along with multi-peril crop insurance, a vibrant risk management sector in Australia would also include single peril insurance products. "I think growers like the idea of being able to be flexible with what they insure," he said. "For example, if there has been good summer rain and the soil profile is full they are less likely to want drought coverage, but will still be interested in frost cover. "That is something they are able to do with these products, which is obviously cheaper than a full multi-peril insurance product." In terms of weather certificates, the system works by getting growers aligned with a Global Positioning System reference point or BOM weather station. Prices are determined by the data over the past 25 years for the site. "Weather certificates help transfer risks associated with adverse weather - be it too much or too little rain, or temperatures that are too hot or cold - away from the farmer and local community and onto financial organisations that can absorb it." Source - http://www.farmweekly.com.au

12.01.2017

Spain - Strong winds take a toll in the Canary Islands

The wind storm that has affected several islands of the Archipelago in recent weeks has caused a devastating situation in various municipalities, especially in the western province, according to Asaja-Canarias technician Javier Gutiérrez. He acknowledged that the consequences will be noticeable in the coming months, when the harvest of the affected crops (especially bananas and avocados) starts and it becomes clear that the fruit has "lost quality." Gutiérrez explained that in El Hierro, last week's winds "have made a bad situation worse." In La Gomera, the valley of Hermigua has been the most affected, and in Tenerife, the north eastern region has been the most hit, especially the meshes, which have not resisted the blows of the wind gusts. The most affected municipality has been Hermigua, in La Gomera, with damage estimated to exceed 50% of the town's agricultural acreage. For this reason, the mayor, Pedro Negrín, has confirmed that "next Monday, 16 January, Hermigua will be declared a catastrophy zone." Some of the crops affected include bananas, avocados and potatoes. Furthermore, he said that, according to what the technical reports show, the share of the acreage affected "will still increase, because the wind has not been normal; there have been seven consecutive days of very powerful bursts." The storm has also taken a notable toll in other municipalities of La Gomera, such as Agulo and Vallehermoso. The mayor, Emiliano Coello, has revealed that in Vallehermoso one of the most affected areas has been La Dama. Bananas, potatoes and avocados have been the products that have suffered the most. It is, in his view, "a problem with an impact on both the economy and the landscape." Source - cadenaser.com

12.01.2017

Spain - Almeria's organic producers suffer huge monetary losses

Dozens of agricultural producers from Almeria who made investments in new greenhouses for organic production during 2015 and early 2016 continue to sell these products as conventional, with the loss of income that this entails. This situation is taking place due to the delay of the Council of Agriculture, Fisheries and Rural Development in the resolution of the necessary files to go from conventional to organic agriculture. COEXPHAL has asked the Council of Agriculture of the Andalusian Government to adopt reorganization measures to solve this urgent problem. A greenhouse must wait for two years to be converted, or recognised by the Andalusian Council of Agriculture within a maximum period of six months, as established by the Andalusian regulations. Given the strong demand for organic products registered two years ago, many horticultural companies and producers in Almeria invested during 2015 and early 2016 to be able to supply organic products by September last year. Once the investments have been made and the move to organic has been requested, with the favourable reports from the certification bodies, all necessary documentation is sent to the central services of the Council of Agriculture in Seville. The excess of centralization entails the absence of intervention from the Provincial Delegation of Almeria, which is really the one familiar with the circumstances on the ground, and this is causing delays in the resolution of the files. To date, files filed during 2015 and the first quarter of 2016 have yet to be greenlighted by the Council, which is causing the sale of organic products as conventional at a lower price. Producers in this situation are estimated to be losing on average of about 6,000 Euro per hectare and the economic result for these growers is disastrous, due to the lack of response by the Organic Production Service. To this we must add that numerous contracts with supermarkets, which included a supply schedule with specific volumes, are being breached by the Almerian companies as a result of these circumstances. Source - http://www.freshplaza.com

11.01.2017

India - Maharashtra announces monetary assistance for farmers

With only few days left before the election code of conduct comes into force for civic and zilla parishad polls, Maharashtra government on Tuesday took three major decisions for paddy, soyabean, and tur farmers. Maharashtra’s revenue, agriculture marketing, and relief and rehabilitation departments announced a financial incentive of Rs200 per quintal for paddy farmers, direct monetary grant of Rs200 per quintal for soyabean farmers, and ordered a revised survey to measure the damage to tur crop in parts of Vidarbha and Marathwada. The government also declared that farmers who have not enrolled for the Prime Minister’s Crop Insurance Scheme and whose crops have suffered damage due to floods would be paid 50% of the amount that they would be entitled to if they were covered under the scheme. Senior Bharatiya Janata Party (BJP) leader and Maharashtra’s relief and rehabilitation minister Chandrakant Patil said government resolutions for all these decisions were issued on 10 January. Patil said all these decisions had already been approved by the state cabinet and only government orders were issued on Tuesday. The election commission of Maharashtra is likely to announce schedule of polls to 26 zilla parishad (district council) bodies and 10 municipal corporations soon, according to state election commissioner J.S. Saharia. The code of conduct will come into effect immediately with the announcement of election programme that would cover a large part of the state. “Considering that 26 of the total 36 districts in the state go to polls, all these decisions impact a large population, especially farmers. These are policy and monetary decisions which could not have been taken if the election code of conduct was in force,” said an official from the state’s revenue department, requesting anonymity. The monetary incentive of Rs200 per quintal of paddy, with a cap of 50 quintals per farmer, would be paid by cheque over and above the minimum support price (MSP) of Rs1,470 per quintal for ordinary grade paddy and Rs1,510 per quintal for A grade variant. “The central government had ruled out raising the MSP when it was fixed. But there has been an increase in the input cost for paddy farmers in the state and this needs to be factored in when giving out the MSP. So the government has decided to pay an additional Rs200 per quintal with a ceiling of 50 quintals per farmers,” said the official adding that the government would bear the additional cost of Rs66 crore on this account. Only those paddy farmers who sell their crop during October 2016-March 2017 period would be eligible for this benefit. The government would pay a grant of Rs200 per quintal to soyabean farmers for the crop sold between 1 October and 31 December, 2016, at the purchase centres run by the Agriculture Produce Marketing Committee (APMC). The grant would have a cap of 25 quintals per farmers. “We had a good monsoon in 2016 which led to an increase in area under soyabean cultivation. But high arrivals of soyabean caused a steep fall in the market price and caused losses to the farmers. This grant is aimed at offsetting this loss,” said an agriculture marketing department official seeking anonymity. Maharashtra is India’s second highest producer of soyabean after Madhya Pradesh and according to an estimate by the Soyabean Processors Association of India is likely to produce nearly 3.9 million tonnes in 2016-17. A large number of farmers in Vidarbha, Marathwada, and Khandesh regions of the state grow soyabean, and the total area under soyabean in the state in 2016 kharif season was nearly 3.6 lakh hectares. Source - http://www.livemint.com

11.01.2017

India - Crop loss assessment gets under way

Vast stretches of withered paddy fields greeted the high-level team that took stock of the crop loss in Tiruvarur district, on Sunday. Farmers and farm workers met the team and poured out their grievances and sinking hopes. Heading the team, Food Minister R. Kamaraj assured farmers that the State Government was seized of the crisis due to inadequate rainfall and negligible flow in River Cauvery’s branches that have reduced agriculture to a farce in Tiruvarur district which is at the core delta region. Assessment at the field-level was under way across the State to ascertain the extent of crop loss and the consolidated reports would be submitted to Chief Minister O. Panneerselvam for further action and remedial measures. Farmers might have lost their crops but must not lose hope as the State Government would always stand by them in their hour of need, Mr. Kamaraj observed. Pointing out that when kuruvai over the years and this year’s samba paddy cultivation were in danger, late Chief Minister Jayalalithaa had implemented special packages to help farmers tide over crises, Mr. Kamaraj promised that succour would come their way soon. At the same time, the State Government was also aware of the drinking water requirements of the town and cities as the summer was round the corner and was contemplating various measures to deal with the situation and avert any negative impact on the public, the Food Minister said. Social Welfare Secretary K. Manivasan and District Collector L. Nirmal Raj were part of the team. Enquiries with senior officials indicated that the State Government might even come out with a relief package essentially comprising cash component which will be helpful to farmers who have lost their paddy crops, on the lines of the 20012-13 when it sanctioned Rs. 15,000 an acre as compensation on account of drought. During that year, while Rs. 5,000 was disbursed as cash the balance Rs. 10,000 was granted as crop insurance damage claims advance and that amount was later adjusted when the actual compensation was calculated and disbursed. Sources say that the current exercise might lead to the State Government declaring relief compensation of at least Rs. 20,000 an acre for farmers who had suffered paddy crop loss. However, some sections of farmers opined that the ‘sham of high-level’ assessment was not at all required. It would serve only the ruling party’s publicity effort. Spending for the cavalcade of vehicles and retinue of personnel accompanying the team could be used in a better fashion, they aver. Source - http://www.thehindu.com

11.01.2017

Argentina - 10% Of Soybean Crop Is Damaged

Fires and floods at the same time. That is what Argentina has faced in the last several weeks in different regions of the country, and that may push some grains higher, especially soybeans. The fires were generated in the southwest parts of Buenos Aires, La Pampa, and Rio Negro provinces due to dry weather in the region, affecting nearly 3.4 million acres. There is not significant planting of soybeans or corn in those places, but there are mostly wheat crops and cattle farms in there. While local authorities claim to have contained the fires, key soybean-producing regions have faced floods that may continue. The floods are concentrated in the northwest area of the Buenos Aires province, Entre Ríos, south of Santa Fe and south of Córdoba. In some cases, there was more than 19 inches of rain in less than 30 days, and there are still forecasts for precipitation over the next 48 hours. According to the Buenos Aires Cereal Exchange, the planting had progressed to 92.9% of the surface at the time the floods came. Losses have yet to be determined, but indeed it will be necessary to replant some batches, and there will be a delay to finish planting. As of today, most estimates put the Argentinian soybean crop at 57 million metric tons. Approximately 740,000 acres are considered under serious risk of loss, while already 10% of the crop is considered in bad or regular condition. “As the exportable supply of soybeans is concentrated in very few countries (U.S. + Brazil + Argentina = 80%), the oilseed complex will see more impact from these weather setbacks than corn in the international market, as reserves are lower,” says Guillermo Rossi, a grain strategist at Big River, a firm located in Rosario, northeastern Argentina. In the specific case of General Villegas, in the northwest of Buenos Aires, there are some of the worst conditions in the country. Floods already started in this location prior to December, in October and November. They expect to lose up to 50% of all corn and soybean production and face a financial loss of over $300 million. “Everything that was grown here is under water. We are facing time crunches, regarding the crops’ growing season. We hope to see it dry up, but as of now we think we lost this crop season,” says Guillermo Chapado, a farmer who is member of the Rural Society of General Villegas. The Argentinian Agrarian Federation has requested immediate official assistance for the producers that suffered with "total losses” originating from floods and fires, and that should include “forage, logistical, and financial help.” “We will not completely recover from this in four or five years,” a statement from the Federation reads. The government has announced a plan of subsidized credit rescue program to help mostly dairy and cattle farmers. Source - http://www.agriculture.com

11.01.2017

Australia - Crop insurance: No stamp duty relief for canola and lentils

VICTORIAN  growers insuring high-value crops such as canola and lentils for hail damage receive no stamp duty relief, while wheat crops do. Growers taking out hail insurance for cereal crops such as wheat and barley get an exemption on the Victorian Government’s 10 per cent stamp duty rate. However, if they are insuring oilseed or legume crops against hail they must pay the full 10 per cent, according to the legislation governing stamp duty in Victoria. This year lentils and chick peas are worth $680-$700 a tonne, and non-GM canola about $500 a tonne while Australian Premium White wheat is worth just $200-$230 a tonne and feed barley about $150 to $170. Another puzzling aspect of the stamp duty laws in Victoria is premiums paid for fire insurance policies for cereal crops are not exempt from stamp duty. According to the Department of Treasury and Finance, the effective rate of stamp duty charged on premium payments for hail and fire protection of cereal crops is 1 per cent. “It reflects the fact that the hail portion of the fire and hail insurance is exempt from stamp duty, while the fire portion is not,” the Department spokeswoman said. Its understood the anomaly is decades old and dates back to when cereal crops were the dominant crop grown in Victoria. In addition, investigation also reveals there is no stamp duty exemption on multi-peril crop insurance premiums, which can cover hail as well as other perils such as drought or frost. Primacy Underwriting chief executive officer Marcus Pearl said he had been lobbying the Government to rectify the situation. Victorian Farmers Federation grains group president Brett Hosking said having different levels of stamp duty on different crop types “seems ridiculous and adds another layer of red tape for growers”. “I would be interested to hear the justification. We will have a look at and see what the impact is for growers,” he said. A spokesman for the Victorian Government said while “there is no current proposal to adjust settings around exemptions relating to crop insurance. The Government continues to listen to Victorian farmers.” Source - http://www.weeklytimesnow.com.au

11.01.2017

Australia - Companies mull government subsidies on premiums

Providers of multi-peril crop insurance (MPCI) are looking forward to government subsidies on premiums despite having a better year of fewer payouts. MPCI provider Latevo said that less than 1% of Aussie farmers avail of MPCI, which makes it more difficult to spread the risk. The low number of participants also means fierce competition among the handful of companies that offer such insurance products. Latevo founder Andrew Trotter noted, however, that the past year has seen fewer crop failures, which meant that, for the first time, the company collected more premiums than it paid out. Latevo, as well as its competitor Sure Season, paid out to farmers in the central-west of NSW who suffered losses from the floods caused by the September 2016 heavy rains. New player Sure Season also paid out to farmers for frost damages in southern Queensland, the central-west and northern areas of NSW and in Western Australia. Currently, the Federal Government implements a crop rebate insurance scheme, which offers around a $2,500 rebate for the upfront costs of securing, or attempting to secure, multi-peril crop insurance. The NSW Government, on the other hand, is considering providing a 50% subsidy of up to $30,000 for the first two years per farm business, falling to 25% for three years. “Every new business has a gestational period to get up and going and we really do need some greater participation by the farmers or the product won’t be here in five years time,” Trotter said. “The reality is governments are looking at this very closely because they understand we need to get more participation by farmers. “It’s a cultural shift as farmers have never thought of it before.” Brendan Reinheimer, of Sure Season, said that while MPCI still has ways to go before it could go commercial and stand on its own feet, MPCI “revenue products” did not need any subsidies by the state and federal governments as they do in other countries. Some farmers were using the insurance to help take up forward grain contracts, Trotter said. “Effectively, people bought insurance contracts in March [and] April last year; they saw some price spikes for both wheat and pulse prices,” he said. “So they forward-contracted on those prices for delivery in [the] December-January period.” “They’ve been able to get far greater return for this year’s crop than farmers that didn’t have that confidence to forward-sell when they didn’t know what sort of crop they were going to get.” Source - http://www.insurancebusinessonline.com.au

10.01.2017

India - All farmers will get compensation at their doorsteps

Compensation for the farmers who had incurred crop loss owing to failure of North-east Monsoon would be provided at their doorsteps, said Minister for Dairy Development K.T. Rajenthra Bhalaji. After inspecting various places in the district to assess crop loss faced by the farmers on Monday, Mr. Bhalaji said the assessment work of crop loss was undertaken by officials of the district under the direct supervision of Collector A. Sivagnanam. “The assessment would be carried out minutely and compensation ensured to all the farmers who faced loss,” he said. Mr. Bhalaji said 10 per cent of the total villages that had faced crop loss would be inspected by various teams of officials. They would incorporate the details of the crop loss in Bhuvan app with all minute details. The Minister said Virudhunagar district had recorded a 59 per cent deficit rainfall during the monsoon, and storage in waterbodies went down significantly. The crops sown expecting good rainfall under the North-east Monsoon withered now. Senior IAS officer and district monitoring officer S. Krishnan, Tenkasi MP Vasanthi Murugesan, MLAs G. Subramanian and Chandra Prabha were among those who visited the fields across the district. Source - http://www.thehindu.com

10.01.2017

India - 12,000 hectares of crops hit in district, says rural development minister SP Velumani

State municipal administration and rural development minister SP Velumani has said more than 12,000 hectares of crops have been hit by drought in Coimbatore district.Velumani, who inspected the drought-hit villages on Sunday as part of the state-wide drive to assess crop loss, said maize, corn and cereals have been worst hit by the monsoon failure in the district. The state government would take measures to provide 100% compensation for the crop loss, he said. According to a statement from the district administration, Velumani said of the 9,869 hectares of area under maize cultivation, crops in about 8,230 hectares have suffered damage to the extent of more than 50%. Similarly, corn grown in 1,665 hectares and cereals in 2,200 hectares were affected due to monsoon failure.Earlier, Velumani told reporters after interacting with farmers near Ettimadai that the district received 67% less rainfall this year compared to the previous years. In the last 10 years, the average annual rainfall received by Coimbatore district was 671mm. In 2015, the rainfall received was higher than the average at 820mm. But in 2016, the district received only 223mm.The rainfall received during the northeast monsoon was also lesser than the normal, he said adding that the situation had resulted in a historic drought in Coimbatore. Source - http://timesofindia.indiatimes.com

10.01.2017

India - Crop damage assessment under way

Assessment of crop loss owing to lack of rainfall in Thoothukudi district is under way. Officials of the Department of Agriculture and other departments had been assessing the extent of damage caused to the crops, Collector M. Ravikumar said here on Monday. He said the officials would ensure cent per cent assessment of agricultural fields. About 10 per cent of the assessment had been completed. The assessment of the damage caused to 13 major crops had been made on a random basis at 53 villages across the district, and about 95 per cent of the crops suffered damage, he said. The assessment would be made at over 400 villages. A report was forwarded to the government following the visit of the special team of monitoring officers, who took stock of farm lands in the district recently, he added. Source - http://www.thehindu.com

10.01.2017

Uruguay - Fruit sector won't be significantly affected by storm

Although the unexpected storm recorded on Tuesday caused serious damage to certain plantations, the phenomenon is not expected to take a toll on a large scale on the good volume and quality achieved lately at the Uruguayan Mercado Modelo, according to Pablo Pacheco, representative of the commercial area of ​​the said wholesale centre. According to the web site of the Uruguayan newspaper El Observador, the most vulnerable crops to this type of phenomena are leafy vegetables, mainly spinach, chard, and lettuce, which during the year 2016 recorded very good results in terms of both volume and quality; therefore, if there are drawbacks, prices will be slightly affected. In the case of deciduous fruits, the harvest of peaches, plums and grapes is in full swing, without great difficulties. The first apple batches, of a crop that will have to supply the market throughout the year, are also being inspected, and there is relief because no significant impact has been detected. However, there is a greater uneasiness amongst producers, as stated by the representative of the Association of Producers of Canelones (APAC), Gerardo Martinez, who told the newspaper that the weather situation generates a lot of uncertainty in the sector. It is very difficult to produce under these conditions, "if we take into account that, over the last few months, we have had to deal with almost one atmospheric phenomenon per week, with hurricanes or strong winds," said Martínez. Meanwhile, APAC vice president, Luis Fabreto, stated that the intensity of the wind knocked off many fruits which were close to being harvested, namely peaches and plums. The storm also caused damage to apples that were not yet ripe and which also fell from the trees. The impact of this may be reflected when the harvest season starts. Similarly, the storm caused the destruction of lettuce and chard crops, as well as of greenhouses located on different estates of rural Montevideo and the metropolitan fringe. Source - http://www.freshplaza.com

10.01.2017

Spain - Valencian agriculture has suffered a catastrophic year

The president of the Valencian Association of Farmers (AVA), Cristóbal Aguado, has pointed out that 2016 has been an "especially catastrophic" agricultural year. For the fourth consecutive year, the sector has suffered the impact of drought and at the end there have been torrential rains as "we hadn't seen for a long time." Thus, the losses have been estimated at a total of 600 million Euro, with 355 million corresponding to the damage caused by the year-end storms, and 245 million to that caused by drought. At a press conference, Cristóbal Aguado has asked the government for solutions "based on an agrarian pact and a consensus of all political parties." Aguado recalled that the Region of Valencia is the autonomous region where "prices for agricultural products have fallen the most," about 12%, to which we must add a 20% loss of profitability. Regarding 2017, he believes it could be a "very tough" year because of the growing abandonment of lands (with this figure already at 165,000 hectares); a situation which he reports to be at a critical point, given the lack of interest from new generations in the activity. As for thefts in the field, he assured that every day producers lose 60,000 Euro, due to which he has asked for "politicians to become more involved in the matter." Aguado has also been very critical of European agricultural policies. "This is not the Europe we want. We want it to be based on solidarity," he stated, referring to the Russian veto and the agreement with South Africa to import citrus fruits as circumstances that are taking a negative toll on Valencian agriculture. "Mediterranean agriculture does not exist in Europe; it is marginalised and discriminated against, and every Spanish government has been an accomplice to this." Thus, he assured that "the countries of the south always lose" and has denounced the "lack of solidarity" of the community institutions, which "seem more concerned in defending the interests of those outside than of those within." Aguado has complained about the announcement of a 80 million Euro investment in organic farming, while conventional agriculture is not supported, and has shown his displeasure with "assembly politics". "I am concerned about assembly politics generating a diversity of opinions on specific issues amongst people who have no idea on ​​the subject. That gives the government the will to do as it pleases." Source - http://www.freshplaza.com

10.01.2017

Australia - Fledgling multi-peril crop insurance industry looks forward to government subsidies on premiums

Multi-peril crop insurance companies (MPCI) are looking forward to governments offering subsidies for premiums, despite having a better year with fewer payouts. The fledgling industry has only a handful of companies and competition is fierce because of the small number of farmers interested. Latevo, the first to offer such insurance products, said fewer than 1 per cent of Australian farmers were taking up MPCI, making it difficult to spread the risk. But the company's founder, Andrew Trotter, said a better year with fewer crop failures has meant that for the first time, it collected more in premiums than it paid out. Like its competitor Sure Season, Latevo paid out flood-hit farmers in the central-west of NSW, where heavy rain inundated crops around Forbes in September 2016. "We've got a couple of clients south of Forbes that got really badly hit this past year, and we're processing their claims now," Mr Trotter said. "They were the fortunate ones compared to their neighbours, who had decided to take the risk on themselves and got flooded when the Lachlan River flooded." New kid on the block Sure Season, which only began offering coverage for revenue loss in 2016, has also paid out to farmers in southern Queensland, the central-west and northern areas of NSW and in Western Australia following frost. Sure Season said it had a long-term arrangement with underwriter Lloyds of London for its MPCI revenue insurance where farmers could retain some risk — for example, the first 30 per cent of their income — and any loss above that revenue they could claim and reduce their premium. Meanwhile, Mr Trotter said Latevo was keen to defend its products from copycats. "Make no bones about it, Latevo will protect its intellectual property and if people copy what we do, we'll deal with it accordingly," he said. Government subsidies being considered Currently the Federal Government offers about $2,500 rebate on the financial check required to take up multi-peril crop insurance. But the NSW Government is considering recommendations from an independent pricing and regulatory commission IPART report to subsidise premiums on multi-peril — 50 per cent for the first 2 years capped at $30,000 per farm, falling to 25 per cent for three years. "Every new business has a gestational period to get up and going and we really do need some greater participation by the farmers or the product won't be here in 5 years time," Mr Trotter said. "The reality is governments are looking at this very closely because they understand we need to get more participation by farmers. "It's a cultural shift as farmers have never thought of it before." Sure Season's Brendan Reinheimer said that while MPCI has a little way to go to be commercial and on its own two feet, the MPCI "revenue products" did not need any subsidies by State and Federal Governments as they did in other parts of the world. Mr Trotter said his clients were using the insurance to help them take up forward grain contracts. "Effectively, people bought insurance contracts in March [and] April last year; they saw some price spikes for both wheat and pulse prices," he said. "So they forward-contracted on those prices for delivery in [the] December-January period. "They've been able to get far greater return for this year's crop than farmers that didn't have that confidence to forward-sell when they didn't know what sort of crop they were going to get." Source - http://www.abc.net.au

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