06.10.2016

USA - Crop insurance is a powerful economic tool

I appreciated Farm Bureau President Craig Hill’s opinion piece Oct. 5 [This much is certain: For farmers, crop insurance is essential]. I agree crop insurance is a key component of the farm economy here in Iowa, which includes 25-plus million acres of actively farmed crop ground. However, what is not well understood is crop insurance's unintended negative impact in degrading water quality in our state’s rivers and streams. This happens, for example, when we provide crop insurance to farmers to plant corn in highly erodable areas or areas subject to flooding when they should be managing the land for timber, grazing or wildlife. In the vernacular of the insurance world, poorly written farm bill crop insurance policies are encouraging adverse selection and moral hazard problems because farmers plant higher risk areas to corn that otherwise wouldn’t be. The next Farm Bill needs to be written so that water quality and soil loss are limiting factors in deciding which lands should be eligible for such crop insurance protection, not unlike restrictions that are now in place for property subject to flooding. There are other aspects of crop insurance that need to be addressed, such as writing new rules to allow for cover crops that protect soil on insured corn ground. Federal crop insurance is one of our most powerful economic tools, representing more than $3.4 billion in federal subsidies to Iowa, according to the Cedar Rapids Gazette (1995-2011). Let’s make sure when it comes to water quality and soil conservation, our federal farm subsidy dollars are spent wisely. Source - http://www.desmoinesregister.com

06.10.2016

India - Farmers advised to pay premium under crop insurance scheme

Farmers in Virudhunagar district have been advised to pay premium for their crops under Prime Minister’s Crop Insurance Scheme which is being implemented since July 21. New India Insurance would undertake crop insurance under the scheme in the district. In a statement, Collector A. Sivagnanam said insurance for paddy (samba) should be completed by November 30, 2016, and for other crops the deadline for paying premium was January 15, 2017. For the farmers who sought crop loan, the premium would be deducted by the respective banks and remitted to the insurance company. Those who did not get crop loan should pay the premium at Primary Agricultural Cooperative Societies or nationalised banks, the Collector said. Joint Director (Agriculture) R. Gurumoorthy said the premium should have been paid at least 15 days prior to the cut-off date fixed for each crop by District-level Monitoring Committee, led by the Collector, to become eligible for claiming compensation by the farmers who were prevented from sowing and transplanting crops by natural calamities. “Only when 75 per cent of the farm area in the revenue village is affected, 25 per cent compensation would be given to the farmers who prepared their land, but could not start sowing or transplantation,” he said. The same was the condition for those crops that faced damage after sowing or transplantation. Post-harvest compensation was applicable only for those crops that were harvested in farms and then dried. The compensation would be paid only to those crops that faced damage within 14 days after harvest. Average yield Mr. Gurumoorthy said for yield loss due to natural calamities such as drought and rain, the loss would be arrived at based on the average yield for last five years. For crop loss, the compensation would be paid within 60 days from the day of submitting the claims, the statement added. Source - http://www.thehindu.com/

05.10.2016

USA - For farmers, crop insurance is essential

There are a number of certainties in life. I know, for example, that every morning on my farm, the sun will rise in the east, and that every evening it will dip beneath the west horizon. And we know Iowa summers will be warm, the winters will be harsh and when the soil has thawed, spring growth will begin anew. But a life of farming is also full of uncertainties. We can’t control the markets, nor the role Mother Nature will play in bringing our crops to harvest. Let me tell you, farmers are always in a constant negotiation with Mother Nature. Some years, Mother Nature is a farmer’s best friend. In other years, it can be our worst enemy. And in those years, there is no substitute for the risk protection that crop insurance provides. Crop insurance allows farmers to pay a premium to alleviate some degree some of the uncertainties involved in farming. A crop insurance check will never come close to what a farmer can get from a bountiful harvest, but it does provide some peace of mind. I’ve been farming for almost four decades and have witnessed firsthand the difference crop insurance can make. In fact, in 1977, my first year full-time farming, we suffered a major drought that resulted in a pitiful 28-bushel corn yield. Crop insurance and other assistance is what kept me going after that first disastrous year. As president of the Iowa Farm Bureau for the past five years, and a member for many years prior to that, I also have also had the opportunity learn why crop insurance works. It succeeds, in no small part, because of its diverse participation. By spreading the chance of loss among a wide and varied group of insured farmers, premiums become less expensive for everyone. It’s a concept known as a “risk pool” and it is what makes things like auto insurance and homeowners insurance work, too. None of these programs would work if only a few folks participated. But it hasn’t always been this way. Farm leaders across the country have worked with legislators effectively in recent years to strengthen crop insurance by expanding the size of the “risk pool” through encouraging and incentivizing increased participation.If you need evidence that this approached worked, just look at the numbers. Today, almost 90 percent of farm acres in the U.S. are covered by crop insurance. It has become the primary safety net for today’s farmer.  Because of this, it has also become one of the biggest targets for anti-farm policy critics. Crop insurance’s detractors — many whom have never negotiated with Mother Nature — often weave a tale about farmers resting on our laurels and laughing all the way to the bank. But that’s all it is: a tall tale. These critics are especially prone to calling out a policy known as revenue protection, which shields farmers in periods of extreme market volatility. But crop insurance, no matter what type, is far from a handout. And having revenue protection doesn’t necessarily equal an indemnity payment, even in years with low crop prices. In 2015, for example, of total indemnities paid to growers, including revenue protection as well as coverage from weather events, only 3 percent were the result of low prices. The safety net that crop insurance provides is essential and is more important now than ever before. Not only does the average American farm feed about 168 people worldwide, but one in five Iowans go to work because of agriculture. But our farm economy has seen better days, with farm income projected to decrease again. Farming is a tough job and perils are many, especially in today’s environment. Crop insurance provides a measure of stability and is an investment in both today’s farm economy and our future. Without it, we’d have a whole lot less American farmers growing affordable food for America and the world. That much is certain. Craig Hill of Milo is the president of the Iowa Farm Bureau Federation. His family grows corn and soybeans and raises livestock. Source - http://www.desmoinesregister.com

05.10.2016

India - Why the New Crop Insurance Scheme is Not Helping Farmers

Recently Delhi and Gurgaon saw immense public outrage, followed by extensive media coverage when a few hours of incessant rain brought the city to a standstill. When thousands of farmers are forced to abandon their villages as flood waters destroy their crops, wash away their livestock and reduce their houses to shambles, it is the traffic snarls in Delhi which fill up the front pages of the newspapers. The average rainfall in India in July-August shows a decreasing trend since 1951, even though rainfall variability has gone up. In the recent past, there has been a shift towards greater intense rain spells coupled with more frequent less intense dry spells. While this causes a great deal of inconvenience in the lives of urban commuters, it threatens the very existence of their rural counterparts. Almost 80 percent of the winter crops in Uttar Pradesh were impacted in 2015. It was the worst affected state with 73 out of 75 districts suffering losses. Rajasthan, Haryana and Bihar followed close after Uttar Pradesh. With this level of crop destruction, farmers need alternatives. An Indian farmer looks towards the sky, while standing amidst his drought-stricken crop. (Photo: Reuters) Why Crop Insurance Schemes Fail Our Farmers There are existing crop insurance schemes, the problem is most haven’t benefited farmers. Only about 20 percent of all farmers in the country are insured for crop damage. This is because the insurance premium is seen as an added burden over and above the loans they are already struggling to pay. Small and marginal farmers suffer the most as the premiums are quite high. At the same time, some of the terms and conditions of the schemes are downright absurd. For instance, the farmers are required to report crop loss within 48 hours of its actual occurrence to the local agriculture department. In the days following a natural disaster, this can be difficult for farmers. A farmer winnows paddy crops in the field. (Photo: Reuters) The process of verifying claims is another problem. If the damages are over 50 percent, an upfront payment of 25 percent is made. However, the remaining 75 percent is paid after the ‘crop cutting experiment’ — an assessment which estimates the losses against the expected actual yields. In the absence of a more scientific mechanism of doing this, these assessments are unable to give an accurate value of the produce. The remaining payment as well as the payment for those who have suffered less than 50 percent crop damage takes from six months to a year and sometimes even more. This fails the entire purpose of giving compensation to the affected at a time when it is most needed. A farmer holds an umbrella as it rains during a day-long protest in New Delhi 8 August, 2013.  Pradhan Mantri Fasal Bima Yojna – Flailing Hope? In January this year the Pradhan Mantri Fasal Bima Yojna was announced. The scheme is already running into trouble. Although the scheme has subsidised the insurance premium for the farmers, it has also made it mandatory for the states to share the rest of the premium with the Centre. The states are unwilling to share this burden as it is too high for them — in some states, it accounts for almost more than half of their agriculture budget. As the tussle goes on between the Centre and State, the sowing season has already gone by. Several states are resorting to ways and means of evading the financial burden. One of them being issuing tender notifications for implementing the scheme. So far 22 states have done so, most of them sending the notification in the months of June and July. Another tactic that the states are resorting to is a reduction in the amount insured in order to bring down the premium. Rajasthan, for instance, has reduced its premium from the expected Rs. 1,800 crore to Rs. 676 crore. A farmer uses his oxen to till his land in front of a satellite dish set up in an adjacent field. (Photo: Reuters) But, the woes don’t end here. One of the key features of the scheme shifts the unit of ‘crop cutting experiments’ from the block level to that of villages across the country. According to the Agriculture Insurance Company Limited (AICL), this new change requires about 4 million crop experiments and an equal number of people to carry them out. Considering the sheer number of personnel required as well as the inadequacy of this method in estimating crop losses, the answer perhaps lies in the adoption of new technologies i.e. through remote sensing and satellite data. With the existing loopholes and unresolved issues in the implementation of the scheme it seems that the farmers might have to wait for even longer to secure their livelihoods in this climate risked world. Source - https://www.thequint.com

05.10.2016

Australia - Produce losses from flood estimated at $30m

Adelaide Plains farmers may lose up to $30 million in produce, as the costly fall-out from days of devastating storms and floods, starts to mount. Flood waters gradually started to recede in the region on Monday 3 October and producers were able to start surveying the cost of storms that have drenched the state with relentless rain, forcing rivers to break their banks, The Advertiser reports. Parts of the state are still bracing themselves for a final sting in the tail of a system that has menaced the state for almost a week, with heavy rain forecast to fall across the sodden Mount Lofty Ranges into Tuesday. Produce losses from floods across the Adelaide Plains region alone are estimated to be $20-$30 million, as the total extent of damage statewide from the storms appears set to reach into the hundreds of millions. Many say the damage to the food bowl was a disaster waiting to happen and could have been avoided, or at least considerably reduced, if flood mitigation works in the Gawler River catchment had been carried out. The wipe out of one of the state’s most prolific salad and vegetable growing regions is also expected to drive up prices for consumers. Source - http://www.freshplaza.com

05.10.2016

Norway - Climate change could benefit farmers

Scientists are of the opinion that climate change could provide Norway’s agriculture sector with some major future advantages. As the country's farmers are enjoying a very rich autumn harvest, the prognosis for fruit and vegetable harvests is looking particularly good. “Autumn has been fantastic, and the forecasts for vegetables such as potatoes, carrots and onions are very good. With both potatoes and carrots, we are expecting a better year than last, and to end on par with 2014, which was a particularly good year,” said Morten N. Andersen, the head of the Green Growers’ Cooperative Market Council (Grøntprodusentenes samarbeidsråd - GPS). “The year as a whole has been very suitable for fruit. Autumn has for example been very nice for apples, which are growing very large in the heat,” GPS spokesman Bjørn Eidhammer said. Tore Furevik of the Bjerknes Centre for Climate Research, said that the good crop yields are confirming what climate models have predicted. “We have already observed a longer growing season in Norway; spring comes earlier and the summer and autumn last longer. We see this in the temperature measurements,” Furevik said. While the higher temperatures brought on by climate change generally have a negative impact on food production for the rest of the world, Norway is experiencing the opposite. “Although increased precipitation also can give the farmers challenges, we can nevertheless see that the longer growing season has more positive than negative effects on agriculture. But the harvest will obviously vary from year to year, and some years can experience extreme rainfall that will lead to particularly vulnerable periods,” he said. Source - http://www.freshplaza.com

05.10.2016

India - Marathwada receives relief after heavy rains

Beseiged by heavy rains and flash floods the Marathwada region which consists of the districts Beed, Latur, Nanded and Osmanabad lost crops planted over a million hectares. CM Devendra Fadnavis stated at a special meeting on Tuesday, at the Aurangabad Divisional Commisioner's Office, that all farmers will be compensated for the crop damages. While soybean farmers had lost crops across a million hectares, Tur, Cotton and Jowar growers did not suffer as bad with only five lakh hectares of arable land being destroyed by the floods. At least 17 people were killed in the flash floods as dams overflowed and heavy rains lashed the agricultural region. The cabinet meeting held by Fadnavis reviewed the flood situation and at a press conference conducted later, the CM promised Rs 4 lakhs to the family of the deceased while other farmers were promised compensation for the loss of their livestock as per norms. He also informed that the state Government will provide money to rebuilding roads, bridges and return power to the region. Fadnavis informed that 78% of the farmers from Marathwada are covered under Pradhanmantri crop insurance scheme and that the state Government would be providing compensation for the remaining 22 per cent farmers by approaching NDRF (National Disaster Relief Fund). He also said that since the entire region has received excessive rainfall, there is no need for Panchanama to assess crop damage. The report by the committee to the District Collector would be enough for providing compensation. An official informed that there are 1.38 crore farmers registered in the entire state while Marathwada region has 3.5 million farmers all of whom have suffered crop damage from the flash floods. Out of these 3.5 million, there are 27.30 lakh farmers who have availed Pradhanmantri crop insurance scheme while 7.70 lakh farmers will needed to be compensated by state and Centre through NDRF. The state Government will prepare a proposal for compensation from NDRF for these farmers as soon as the rain stops in the region. Source - http://www.dnaindia.com

05.10.2016

Australia - Farmers suffer losses due to unusual frost

With no guarantees or insurance against frost, a large number of farmers have suffered losses due to below-freezing temperatures in Wheatbelt, South West, and Great Southern regions, it has been reported. Some farmers have reported losing up to 50 per cent of their crops due to the ‘unusual’ frost, while others have been virtually unaffected, ABC reported. The Bureau of Meteorology (BoM) has characterised the number of frosts that greatly affected Central and Western Wheatbelt as unusual, probably due to the spring’s unseasonably cold start in the state, the report said. Braden Grylls whose property lies west of Corrigin has expressed disappointment given how well the crops were going: "It's one of those things, you have such a good year like you're having this year and you think well something's going to give. "You just back on putting a crop in knowing you're going to get a frost... We've been getting these three of four mil events and then you might get a frost the next morning which on a normal year, that's unheard of, it's just one of those things that's happening this year, on such a good year unfortunately.” Colin Nicholl, a farmer of 50 years, told ABC that ironically, what was shaping up to be one of the most promising seasons in recent years has also proven to be vulnerable to the freezing conditions. "One of the vagaries of frost is that the better the crop the harder frost hits it," Nicholl said. "We are now growing much higher yields than we have ever done before, but I think there are other factors in that, we just seem to be getting later frosts and frosts of more intensity than we ever used to before." Agronomist Helen Wyatt said the frost has caused widespread damage: "We're seeing varied levels of frost damage throughout the region.” "In some areas it’s hard to tell the extent of the damage yet, there's been consecutive frost events and some this morning as well so we really won't see the full effect of that for another 7 to 10 days." Nicholl took the losses philosophically: "It's all part and parcel of farming, while it's difficult to take, to be successful you can't just throw the towel in." CBH, the state’s grain handler, said it would only know the true extent of losses until harvest start. Source - http://www.insurancebusinessonline.com.au

04.10.2016

China - Insured crabs, tea help farmers avoid extreme weather losses

Ma Rongda, a tea grower for nearly 30 years, knows how badly his business can be affected by extreme weather. But when heavy snow and cold hit his tea garden earlier this year, Ma was not as worried as he used to be. “I bought insurance for my tea plantations,” he explained. For an annual premium of some 7,000 yuan (815 pounds), the 46-year-old received compensation of more than 220,000 yuan – enough to cover all of his production costs last year. This is the second year that Ma and his fellow farmers in eastern China’s Anji County have had access to insurance. Before that, no policies were available for Chinese tea growers looking to secure their crops. As erratic weather has become the new norm in China, insurance policies against losses from extreme weather have emerged in a wide range of agricultural businesses, from beekeeping to cattle ranching to seaweed farming. Many are proving hugely popular, thanks in part to cut-rate prices made possible by government subsidies. Chinese officials say the number of buyers of agriculture-related insurance has more than tripled in the country between 2007 and 2015, while the area of farmland covered by insurance has quintupled. The fast expansion of insurance is just one thing China is doing to reduce what it sees as a growing risks related to extreme weather and other climate change impacts. The country now requires infrastructure construction companies to take climate change impacts into consideration when planning new projects. It has also developed early warning systems for extreme weather events and taken up popular communications tools – such as Weibo, China’s version of Twitter – to send out typhoon alerts. Disaster statistics show why. Over the last 20 years, one out of two people affected by weather-related disasters has been Chinese, according to the United Nations. Chinese government statistics show that floods, droughts, typhoons and other natural disasters have caused annual economic losses of 200 billion yuan ($30 billion) a year, on average, since the 1990s. Chinese farmers, whose harvests rely on good weather, have been among those hit the hardest. 'REALLY STRANGE' WEATHER Ma, the tea grower in Anji County, for instance, had already lost last year’s harvest to extreme cold when freezing temperatures hit his plantations again this year, withering the tea leaves. “The weather is now getting really strange,” Ma said in a telephone interview with the Thomson Reuters Foundation. “We used to experience extreme cold weather once every three years. But in 2016 alone, we suffered from (both) heavy snows and cold waves. It was a double whammy.” The insurance he now buys – introduced last year – gives farmers an automatic payout for losses, without a visit from an insurance claims adjuster, when the recorded temperature drops to minus 0.5 degrees Celsius during the harvesting season. With Chinese policymakers promoting market-oriented solutions to help cope with climate change, 65 percent of the insurance premium is being covered by government subsidies, making the new service appealing to cost-conscious farmers. Concerns over extreme weather drove Ma to buy insurance for all his tea land as soon as the service became available in 2015 – and he has encouraged many others to do the same, he said. According to the Anji White Tea Association, the scale of insured tea plantations increased from 600 hectares in 2015 to nearly 1,900 hectares (4,700 acres) this year. PICC Property and Casualty Co. Ltd., which designed the insurance for tea growers, has rolled out 39 insurance products aimed at helping Chinese farmers handle an increase in climate shocks. Other insurance firms also have come up innovative policies, both in design and the way they are sold. Shanghai-based Anxin Agricultural Insurance Co. Ltd., for one, recently teamed up with Taobao, a popular Chinese e-commerce site, to sell insurance against crop failures caused by strong winds. Farmers can buy the insurance online and claim it based on meteorological data, which enables the company to serve farmers whose villages do not have any insurance agents. INSURED CRABS There are also growing efforts to create insurance services for climate-related damages that are hard to measure. Suzhou, a city west of Shanghai, is a major production hub for Chinese mitten crabs, a burrowing crab that is named for its furry claws and that is an autumn delicacy in eastern China. But since heat waves have begun happening more frequently in Suzhou, farmers have complained that their mitten crabs – and their wallets – have reduced in size. Although traditional agricultural insurance covers the loss of crab production, insurance agents and crab growers often argue over the amount of compensations, said Lu Jihui, a spokesman for China Pacific Insurance Group Co. Ltd. That’s because high temperature isn’t the only cause of smaller crabs, making it challenging to measure the actual damages. To eliminate the disputes, China Pacific Insurance has designed a new product that directly links the rate of compensation with temperature peaks – and avoids time-consuming, labour-intensive damage assessments. China’s new climate-related insurance services, however, often depend on heavy government subsidies. While the central government and local authorities have opened their wallets to support pilot programs, it remains unknown to which extent they can continue the financial assistance. There is also a problem with some farmers still hesitating to buy insurance, despite the benefits, insurance companies say. However, this is expected to change as more extreme weather events hit. One case in point is Suzhou, where extremely hot weather persisted for more than 20 days this summer. “Many crab growers in my village failed to break even this year, because of the adverse impact of high temperatures,” said Shen Wenrong, a 48-year-old crab grower. Shen said his crabs were also only two-thirds normal size, but he stayed profitable in part because the insurance compensation offset some losses. Now “many of my neighbours plan to buy climate insurance next year,” Shen said. (Reporting by Coco Liu; editing by Laurie Goering :; Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers humanitarian news, climate change, women's rights, trafficking and property rights. Source - http://uk.reuters.com

04.10.2016

Bolivia - Strongest drought in 25 years

The two food production systems that support Bolivia — family farming and agribusiness — are being hit by the worst drought in the last quarter century and one of the three worst in the last 65 years. Official data indicate that a state of emergency has been declared in 142 of Bolivia’s 339 municipalities. Eight of the nine Bolivian departments have been affected. One hundred and forty-five thousand families are at risk, nearly 299,000 hectares of crops have been damaged, and around 370,000 cattle have been lost. Despite the extreme situation, national authorities say there will not be a shortage of food, and that food prices will not increase. To guarantee this, the government issued a package of decrees ordering the allocation of resources to assist those affected and to shore up the food supply through imports. The resources sent to farmers — primarily food, forage, and water — have reached the impacted regions slowly. Gonzalo Colque, director of the Tierra Foundation, a Bolivian sustainable development NGO, notes that the damage is mainly to the winter farming season and not the summer. Summer is the most important season for food production, with more than 3 million hectares planted, twice the area typically cultivated in winter. [caption id="attachment_189889" align="aligncenter" width="621"] Over the last ten months, the drought decreased the flow of the Río Blanco, which is now on the verge of drying up. Photo courtesy of La Palabra de Beni[/caption] Indigenous communities ask for help Since the end of 2015, it has not rained in the municipality of Belén de Andamarca, located in the department of Oruro in the western part of the country. Its wells are practically dry, so the municipality declared a state of emergency. “We have lost potatoes and quinoa crops, our llamas are dying, and we still have not received the help we need,” Cristóbal Huanca, an indigenous leader in the municipality, told Mongabay Latam. [caption id="attachment_189896" align="aligncenter" width="644"] In Papelpampa in the Bolivian department of Oruro, quinoa crops were lost to the drought. Photo courtesy of the Ministry of Rural Development[/caption] In the municipality of San Antonio de Lomerío in the eastern department of Santa Cruz, home to many indigenous Monkox Chiquitano people, drought is a problem every year. It is exacerbated by population growth, according to resident Lidia Chuvé. “We are right where the Precambrian Shield starts, which makes it impossible to drill [water] wells. We have five of them and no supply,” said Chuvé, referring to a prominent geologic feature. “Since August, they have given us just 30 liters of water per family.” Rice, corn, and cassava crops no longer exist in San Antonio de Lomerío. Livestock must now travel 15 to 18 kilometers (9 to 11 miles) to drink water. This scenario was aggravated by forest fires in the east. “I already felt that this was the end. Although we are in a state of emergency, not even local, departmental, or national authorities assisted us,” said Chuvé. In the municipality of Macharetí located in the department of Chuquisaca, the situation is no different. Residents have already lost 2,000 cattle and 50,000 more are at risk of dying. The situation in the municipality’s 43 communities (21 of them farming communities) is critical and even more so for the families of the 22 indigenous Guarani communities. Five hundred of their 1,300 cattle died. “They are dying of hunger and thirst. Pregnant and breastfeeding cows are the first to fall. We feel impotence. We cannot do anything. We can only ask for the authorities’ support,” said Fermín Romero, an indigenous leader with the area’s Assembly of the Guarani People. [caption id="attachment_189894" align="aligncenter" width="602"] The livestock situation in Cercado, Yacuma, and Marbán provinces in central Beni department. Photo courtesy of La Palabra del Beni.[/caption] Guarani farmers lost 95 percent of their corn crops (1,190 hectares) and have gone into debt. “The municipality gave us the opportunity to grow crops, but things did not go well for us. We are in a total imbalance,” said Romero. Chuquisaca departmental authorities have sent the community supplies of rice, noodles, flour, oil, and sugar that will be divided among those affected. “Each family received nine kilos. That will only last for a week. What shall we do?” asked the Guarani leader. Losses nationwide Across the country, some 370,000 cattle were lost. More than half a million more are at risk of dying, said José Luis Vaca, the president of the Federation of Livestock Farmers of Santa Cruz. Vaca stressed the urgency of helping the surviving animals regain their lost weight, which means an additional expense for farmers. [caption id="attachment_189895" align="aligncenter" width="599"] Cattle suffer the effects of the drought in the Beni department. Photo courtesy of La Palabra del Beni[/caption] In the last week of August, Bolivian grain and oilseed producers reported losses of more than $180 million because they stopped production of 660,000 tons of wheat, corn, sorghum, and soybeans. In a press conference, the president of the National Association of Oilseed Producers (ANAPO), Reynaldo Díaz, stated that 18,000 out of the country’s 100,000 hectares of wheat were lost. While ANAPO members plan to plant 1 million hectares during the summer planting season, Díaz said he anticipates that there is a risk that they will not be able to do so without economic assistance.Colque of the Tierra Foundation stressed that while the crop loss is significant, it would have been even worse had the drought come during the main summer harvest season. [caption id="attachment_189893" align="aligncenter" width="605"] Quinoa crops affected by drought and frost in Oruro department. Photo courtesy of the Ministry of Rural Development and Land[/caption] The government’s emergency responseThe drought led the cabinet of President Evo Morales to take emergency measures. On August 2, the government enacted 12 decrees to address the phenomenon and strengthen agricultural production. The government provided 48 million Bolivianos ($6.9 million) to respond to the emergency. The Minister of Rural Development and Land, César Cocarico, said these funds are destined to provide forage, seeds, water, and balanced livestock food to the producer families of the hardest-hit areas. The government hopes to distribute the funds before the start of the summer planting season. The government will also spend 3.2 million Bolivianos ($461,000) to rent or buy water tanks and pipes, said Óscar Cabrera, the Deputy Minister of Civil Defense. [caption id="attachment_189892" align="aligncenter" width="581"] The government provided affected families in the department of Potosi forage for their livestock. Photo courtesy of the Ministry of Rural Development and Land[/caption] Agribusiness farmers believe the aid package — known as the supreme decrees package — is insufficient to mitigate the losses. Susano Terceros, ANAPO’s vice president, is concerned that the government is only contemplating helping farmers reschedule debts with their financial backers and not with their suppliers, whom they owe a total of $400 million. In late August, the government’s Food Production Support Enterprise (EMAPA) delivered balanced livestock food to the affected farming families in La Paz and Oruro departments to address the lack of forage grasses. In early September, the Ministry of Civil Defense gave equipment and supplies to municipalities in the department of Beni. The governments of the affected departments have also mobilized. By the first week of September, the National Agricultural Insurance Institute (INSA) had paid 9.5 million Bolivianos ($1.37 million) to 10,000 farmers, Erik Murillo, director of INSA, told Mongabay Latam. Insured farmers receive 1,000 Bolivianos ($144) per hectare lost, but they can only insure three hectares. The agency projects that it will pay out a total of 25 million Bolivianos ($3.6 million) to 30,000 families for crop losses during the 2015-2016 season. Small and large producers alike claim such measures are insufficient, saying they cannot afford to pay their loans or face the summer planting season. Some are unsure they will even be able to feed their families. According to INSA, the drought affected 40 percent of the production of corn, 30 percent of potato, and 30 percent of other insured products, including wheat, beans, quinoa, barley, oats, beans, and alfalfa. Peasant and indigenous family farmers took action after the El Niño phenomenon exacerbated the drought. For example, in Macharetí, they equipped wells and constructed pools to harvest water. However, Romero, the Guarani leader, laments a lack of equipment and technology to distribute the liquid inside the pipes to the animals that need it. “We are in the last corner of the country; we need state policies that will give priority to our region. We are in an extreme state of emergency,” Romero said. Meanwhile, family farmers in eight municipalities in the department of Oruro proposed a project that would help them address adverse climatic events such as droughts. “The project includes planting native pasture for feeding cattle” said Huanca, the indigenous leader. But the government declined to fund the project saying it lacked the money to do so, he said, and frustrating the aspirations of Ouro’s farming families. [caption id="attachment_189891" align="aligncenter" width="594"] The unusual drought, described by the government as the worst of the past 25 years, has 142 of the country’s 339 municipalities in a state of emergency for the loss of crops and livestock. Photo courtesy of La Palabra de Beni[/caption] New plans for future conditions The Bolivian government will continue allocating funds to the affected communities and taking measures to strengthen agricultural production. Meanwhile, public entities are conducting research to help ease the effects of drought in the long run. The nation must avail itself of every alternative to ensure food security, said Freddy Porco, dean of the Faculty of Agronomy at Universidad Mayor de San Andrés (UMSA). “The university should be the technical support of the government. We are ready, but the state underuses its research capabilities,” he said. The Faculty of Agronomy is currently investigating drought-resistant species, including edible, nutritious plants considered weeds, like purslane and dandelion, according to Porco. It is also working to develop fast-growing hybrids of traditional crops, such as lettuce, that require less water and have higher performance. UMSA Researchers can now produce 300 grams of lettuce with 10 liters of water — well below the current average of 30 to 40 liters. Likewise, the National Agriculture and Forestry Innovation Institute (INIAF) also announced that it would launch drought-resistant seeds of wheat, rice, and soybeans. While Bolivia’s public entities take measures to address the acute drought, the country’s farmers and livestock owners continue to demand financial assistance to ensure the nation’s food supply during the summer planting season. “There is uncertainty about what the small farmers who have lost their crops will do in the short term. How will they borrow money again to buy seeds, fertilizers, insecticides, herbicides, diesel, and contract labor?” Gary Rodríguez, president of the Bolivian Institute of Foreign Trade, said to Mongabay Latam. While the Bolivian government claims that the food supply is safe, only the coming months will tell —  especially now that experts are warning that the unusual drought will persist. Insecurity lurks. Source - https://news.mongabay.com

04.10.2016

USA - 2016 Crop insurance payment potential could depend on location

Even though USDA is projecting record corn and soybean yields on a national basis in 2016, it is possible that a significant number of corn and soybean producers in some areas of southwest Minnesota, as well as adjoining areas of Iowa and South Dakota, could qualify for crop insurance indemnity payments in 2016. Much of this region dealt with planting delays last spring, excessive rainfall during the growing season, severe storms, and in some cases a very dry weather pattern in July and early August. This weather combination will likely result in corn and soybean yield reductions on numerous farms across the region. With federal crop insurance, every year is different, and with the multiple options available to producers, there are many variable results from crop insurance coverage at harvest time. The 2016 crop year will be no different, with some producers choosing Yield Protection (YP) policies (yield only) versus Revenue Protection (RP) policies (yield and price), with producers having differences in the level of coverage, and with some producers choosing “optional units” rather than “enterprise units.” In the midwest, most corn and soybean producers in recent years have tended to secure some level of revenue (RP) crop insurance coverage, rather than standard yield-only (YP) policies. Producers like the flexibility of the RP policies that provide insurance coverage for reduced yields, as well as in instances where the harvest price drops below initial base price. In 2016, corn crop insurance loss calculations with YP policies and RP policies will function differently, due to the likely Chicago Board of Trade (CBOT) harvest price for corn being below the 2016 crop insurance base price, which was finalized on March 1, 2016. Soybean crop insurance loss calculations with both YP and RP policies will function similarly in 2016, due to the CBOT harvest price for soybeans likely being higher than the 2016 base price; however, the payment rate will likely be different. The established base prices for 2016 YP and RP crop insurance policies on March 1 were $3.86 per bushel for corn and $8.85 per bushel for soybeans This will be the payment rate for 2016 YP policies for corn and soybeans. The $3.86 per bushel will also likely serve as the final price to calculate revenue guarantees for calculating potential RP crop insurance indemnity payments for corn. The final harvest CBOT price for November soybean futures is likely to be higher than $8.86 per bushel, which would then result in the harvest price being used to determine the RP insurance guarantee for soybeans. The final harvest price for RP insurance policies with harvest price protection is based on the average CBOT December corn futures and CBOT November soybean futures during the month of October, with prices finalized on November 1, 2016. If the average 2016 CBOT December corn futures price in October is below the $3.86 per bushel base price for corn, which seems likely at this point, then the initial base price is used to calculate the RP guarantees for corn. Otherwise, the October harvest price would be used. If the average 2016 CBOT November soybean futures price in October is above the $8.85 per bushel base price for soybeans, which also seems likely, then the harvest price is used to calculate the RP guarantees for soybeans. The CBOT average price for October is used to calculate the value of the actual harvested bushels for all RP insurance policies. As of September 30, the CBOT futures prices were $3.36 per bushel for December corn and $9.54 per bushel for November soybeans. If the average CBOT prices stay at these levels, the base prices of $3.86 per bushel for corn, and the harvest price of $9.54 per bushel for soybeans, would be used to calculate the RP insurance guarantees for corn and soybeans in 2016. Corn and soybean producers had the option of selecting crop insurance policies ranging from 60 percent to 85 percent coverage levels. The level of insurance coverage can result in some producers receiving crop insurance indemnity payments, while other producers receive no indemnity payments, even though both producers had the same adjusted APH yield and the same final yield. For example, at an adjusted APH corn yield of 190 bushels per acre, a producer with 85% coverage would have a yield guarantee of 161.5 bushel per acre, and a revenue guarantee of $623.39 per acre, while a producer with 75 percent coverage would have a yield guarantee of 142.5 bushels per acre, and a revenue guarantee of $550.05 per acre. If the actual 2016 yield was 175 bushels per acre, with a $3.36 per bushel harvest price, the producer with 85 percent coverage would receive a gross indemnity payment of $35.39 per acre, while the producer with 75 percent coverage would receive no indemnity payment. Producers that have crop revenue losses in 2016, with potential crop insurance indemnity payments, should properly document yield losses, regardless of their type or level of insurance coverage. A reputable crop insurance agent is the best source of information to make estimates for potential 2016 crop insurance indemnity payments, and to find out about documentation requirements for crop insurance losses. It is important for producers who are facing crop losses in 2016 to understand their crop insurance coverage, and the calculations used to determine crop insurance indemnity payments. Source - http://cornandsoybeandigest.com

04.10.2016

Taiwan - Typhoon losses have now hit US$82.4m

Agricultural losses from Typhoon Megi, which swept across Taiwan on Tuesday 27 Sept., have risen to NT$2.58 billion (US$82.4 million), according to the Council of Agriculture (COA) on Sunday 2 Oct. Crop damage accounted for most of the losses at about NT$2.22 billion, with rice farmers taking the biggest hit, suffering crop losses of NT$385.75 million, followed by growers of bananas, guavas, bamboo shoots and grapes. Chiayi County in the south suffered the heaviest losses at NT$492.19 million, followed by Yunlin County with NT$490.27 million, Kaohsiung with NT$287.20 million, Changhua County with NT$279.80 million, Taichung with NT$217.50 million and Yilan County with NT$203.24 million, the COA said. Typhoon Megi made landfall Tuesday in Hualien County in eastern Taiwan, causing seven deaths and 625 injuries and leaving 4.22 million households without power before moving westward toward mainland China early Wednesday. Source - http://www.freshplaza.com

04.10.2016

Cyprus - Farmers to receive €19.28m in compensation

Farmers in Cyprus will receive compensation amounting to €19.28 million for damage sustained due to prolonged drought, hailstorms and frost, Minister of Agriculture, Rural Development and Environment Nicos Kouyialis said after a Council of Ministers meeting. "The amount was decided following estimates by Cyprus Agricultural Insurance Organisation (OGA) after claims made by the affected farmers and the payments will begin immediately,” said Kouyialis in statements following the meeting, according to an official press release. He said the payments will be given by priority to wheat producers, in a bid to actively assist the sowing period, citrus fruit producers, artichoke producers and azarole fruit producers who will receive 50% of the compensation with the remaining compensation to be paid gradually by the end of 2016. “This is substantial government support to the rural world at an admittedly challenging time because of the weather patterns that prevailed. The Government puts its hand deep in its pocket, because of the weakness of OGA, and stands by the efforts of our farmers to expand our rural economy, " Kouyialis concluded. Koyialis told the Parliament early in September that the government was forced to approve a supplementary budget as OGA`s cash reserves amounting to €2 million were just enough to cover only 10% of the total compensation. Source - http://www.freshplaza.com/

04.10.2016

India - More farmers covered under crop insurance scheme

The Centre appears to have scored some points on the success of the recently-launched Pradhan Mantri Fasal Bima Yojana — the flagship insurance scheme for farmers. Going by the latest estimates of coverage and the sum insured it has seen a marginal increase vis-a-vis last year. “We are still compiling the numbers, but the latest number we have got is that about 3.15 crore farmers have been insured this kharif season as opposed to 3.08 crore last year. The sum insured has also increased and nearly doubled for some states. It is a big achievement as last year was a drought year and insurance was being sold till the end of the sowing season (September 30) by which time farmers knew that they would need it,” an Agriculture Ministry official told BusinessLine. No deadline extension As opposed to that, under the PMFBY, the deadline for insurance in most States is July 31, which was extended by ten days to August 10 this kharif as most States notified the new scheme late and the coverage was low. “It was a one-time extension that we allowed as the scheme was new and without the extension most farmers would have been left uncovered. In the rabi season, coverage would be higher as States now know about the scheme. It is unlikely that we will extend deadlines again as it spoils the premium calculations made by insurance companies,” the official said. The older insurance schemes were not very good insurance products as they were available for such a long period that the whole concept of safeguarding against risks was defeated. Premium for crops “As a result, the premium paid by the farmers was much higher and the sum insured was also low as the government could not afford to insure against large amounts,” the official said. The PMFBY, which replaced the older National Agricultural Insurance Scheme (NAIS) and the modified NAIS, seeks to provide comprehensive insurance to farmers against the vagaries of nature at very low premia of 2 per cent of the insured value for the kharif crop and 1.5 per cent for the rabi season. More important than increased coverage under the PMFBY this kharif is the increase in the sum insured this year. “Because there is no cap on the sum insured, the entire loss to a farmers’ crop can be covered. So, the sum insured has increased significantly and for about five-six States it has actually doubled,” the official said. More funds The Agriculture Ministry has approached the Finance Ministry for more funds as there is a “huge increase” in government support because higher coverage would mean higher claims and higher premium charged by insurance companies. The Centre and States share the burden of the difference between the premium charged by the insurance company and that paid by the farmer. The PMFBY has covered about 23 per cent of India’s farmers this kharif against a target of 30 per cent, but the coverage is likely to increase in the rabi season as States are expected to carry out bidding for insurance companies in time, the official said. The scheme seeks to cover 50 per cent of the country’s farmers in three years. Source - http://www.thehindubusinessline.com

03.10.2016

USA - NMSU researchers study hail damage to paprika chile with simulated storms

While watching a 15-minute hail storm on May 18 disintegrate the leaves on chile plants, Israel Calsoyas realized the importance of research she is conducting at New Mexico State University. “All you could see after the storm was the main branches left bare,” she recalled. “I thought about the farmers whose main income comes from a chile pepper crop and I realized that my research is really important.” Calsoyas, a College of Agricultural, Consumer and Environmental Sciences doctoral student studying plant physiology in the Department of Plant and Environmental Sciences, is establishing data regarding the impact of hail damage on paprika chile pepper yield. Hail is one of the weather risks all farmers face, no matter what type of crop they are raising. It can demolish a crop in minutes. Across the country where hail is a frequent event, farmers often purchase a crop-hail insurance policy to protect high-yielding crops. “During the last 30 years, New Mexico has had an increase in incidents of severe hail damage, according to the National Oceanic Atmospheric Administration,” Calsoyas said. “Because of this, the National Crop Insurance Service and other insurance agencies are interested in data to help them calculate how to refund people for their crop yield loss.” In 2014, 1,466 of the 8,600 acres of chile peppers planted in New Mexico was insured for hail damage, according to National Crop Insurance Service. Chile is a broadleaf crop, so it is more sensitive to hail damage than a slender leaf crop, such as corn. For corn, the diameter of the hail has to be an inch or larger to cause damage. With chile it can be even less than that to cause damage. When hail damage occurs the farmer must decide whether to till the crop under and start over with a different crop, mow the chile pepper allowing it to grow back, or ride it out to see what type of yield they get. “Farmers want to know if hail hits their crop during the growing season how the plants are going to respond,” she said. “Is their yield going to be the same or is it going to be decreased?” Part of the equation for the farmer’s decision is when the damage occurs. “If it is early in the season, chile is actually really vigorous and will come back. Sometimes, growers will mow down the plants to within six inches of the ground, and the plant will come back.” Chile pepper plants’ growth is partially determined by the air temperature. Optimum growth occurs in the range of 64 to 90 degrees Fahrenheit. In warmer temperature conditions plants develop at a slower pace, if at all. The farmer’s action is determined by whether there will be enough days in the optimum temperature range for the plant to recover and produce fruit after hail damage. To see how the plants recover from damage during the season, Calsoyas has simulated hail damage at three different points in the chile plants’ growth by using pressurized water sprayed on the plants at three different damage levels – slight, medium and high. “What we are trying to create is 30, 60 and 90 percent plant damage at different growth stages – first bloom, fruit setting on and fruit at full maturity,” she said. Simultaneously, the researcher is conducting a stand production trial where she will see how surviving plants response when a percentage of plants are removed from the plot. “Typically, research has shown, when you reduce the stand the remaining plants start to grow more vigorously because they have more space and less competition so they put on a lot of fruit and become more bush-like,” Calsoyas said. “However, other research has shown a field with a higher population of plants will produce more per acre than a field with a lower population, even though the field with a lower population may have more yield per plant.” While yield is important, for red paprika growers, the color of the pepper also is important because of the red oleoresin extracted from the chile, which is used in a variety of products. “We want to see how hail damage affects the color,” she said. “Since the color is factored into the value of the paprika chile, this information will help the grower while deciding what to do with their field: continue raising the plants or to till them under.” Paprika chile pepper harvest begins in late September in southern New Mexico. At that time Calsoyas will gather data regarding the yield of the different scenarios. Next year she will repeat the research to gather more information. “The information we are gathering will benefit the growers with their cropping decisions, as well as the insurance companies in compensating for the crop loss,” she said. “At the end of next year’s season, we should have final results that say how much the crop yield will be reduced depending on when the hail damage occurred and the severity of the hail event.” Source - https://newscenter.nmsu.edu

03.10.2016

Canada - Drones giving Alliston-area farmers edge on crop management

When it comes to figuring out where to spend time and resources managing crop fields, more farmers are discovering it helps to have an eye in the sky. Earlier this growing season, Ruth Ploeg, who farms chipping potatoes and other crops with her husband and parents near Alliston, hired a company that uses drones to provide detailed overhead maps of crop fields. Special sensors attached to the drones collect vital information to see where crops are doing well and struggling. The information obtained during the flyovers is used to produce colour-coded maps of each field so farmers can see where they need to do more irrigation or adjust their fertilizer input. For this trial run, maps were produced for about five potato fields, with the green areas showing where crops are fairing well, and red areas where plants are in trouble. “I think it’s worth it and I would do it again,” Ploeg said. “At least we’ll know which fields are uneven.” The biggest challenge this year for most farmers has been the drought. Ploeg and many of the farmers she’s spoken with agree it has been one of the worst years on record. “The last three years have been pretty easy on the irrigation, but this year we were doing it almost fulltime until the pond was empty,” Ploeg said. “It costs us a lot of money, electricity, fuel and labour,” Ploeg said. “We actually call it irritation.” Not enough water to go around means lower crop yields. In areas where plants haven’t had enough water, she said crop yields were down to 100 bags per acre, when the ideal amount is 300 bags. “It was impossible to keep up with the water,” Ploeg said. “It was just so hot and so dry, and we have limited water source.” In a season like this one, it helps to have as many tools as possible to manage crops, according to agronomist Stephanie Kowalski, whose family used to farm potatoes in the Glencairn area. While drones have been used by other industries like mining for many years, it’s a relatively new practice for agriculture. “They are fairly new in terms of being field applicable,” Kowalski said. “They’ve had drones around for a while now, but making them cost effective was the hardest part.” She noted that the drones used to fly over farmers’ fields are much more advanced then ones found at local retail outlets, costing anywhere between $15,000 to $25,000 depending on what type of sensors they have. Once a farmer has analyzed the crop maps, they can decide how to respond to the field conditions. Sometimes it’s not just a lack of water that is causing the problem. “When we look at the map and see it’s red, we don't know why it’s stressed,” Kowalski said. “It could be disease, it could be pests, it could be soil, or it could be heat it’s releasing.” While the maps offer a trove of information, she said farmers still have to take the time to walk through the fields to inspect the plants visually and take leaf samples. Once the issue is determined, a plan can be put in place to tackle the problem. In the event fertilizer is deemed to be the issue, Kowalski said information can be loaded onto a usb stick, which is then plugged into the machine that distributes the nutrients in the fields. “Automatically, as it drives down the field and hits the red spots, it changes the rate of fertilizer,” Kowalski said, adding the machine using GPS points to make adjustments on the fly. The cost benefits of using inputs more effectively is just one of the advantages of using this technology. “Being able to dial in your fertilizer rates is a big bonus for the environment,” Kowalski said. “Nutrient stewardship is a huge topic for farmers, phosphorus in the Great Lakes, things like that. So anytime we can manage these nutrients efficiently like this is a huge bonus.” While Ploeg is impressed with the advantages drone technology has to offer, she said it’s up to farmers to make the most of them. “It depends how you use it,” she said. “You can have as many maps as you want, but if you’re not reducing your fertilizer and using your nutrients more carefully, then the maps are just paper.” Source - http://www.simcoe.com