Agroinsurance

Jamaica - Dry spell bedevils farmers but expect more than average rainfall

The breadbasket Parish of St Elizabeth is currently reeling from the effects of severe drought conditions, with farmers said to be experiencing significant losses as their crops dry up in the field."Just from the drought alone, many persons would have been losing their crops because the crops would have received enough sunlight, enough fertiliser, but not enough water to feed the plants through the roots," member of parliament for South West St Elizabeth, Hugh Buchanan told.The problem has widened beyond the agricultural sector with domestic water supply now being impacted by the dry spell. Buchanan said the entire south coast is now being affected by a severe shortage of water. "I got a call today (yesterday) from Barbary Hall, which has never asked me for water, and there are other areas that usually ask and they are still asking," he said."I don't know where to tell you that there is a good water supply right now in my entire constituency," the South West St Elizabeth MP continued.Flagaman, a farming community known for its efficient production of a range of crops, is facing an uphill task despite efforts at trucking water into the area.Despite the proximity of two irrigation systems to Flagaman, Buchanan explained that the aquifers had very low capacity, and as such, there was no supply of water to farmers.The MP said he worked with the farmers to truck water to Flagaman last Monday, but this was inadequate as the demand was overwhelming.He said Agriculture Minister Derrick Kellier has pledged to provide assistance to farming communities.The trucking of water to farmers is expected to significantly push up the cost of producing melon and cantaloupe. According to Buchanan, it costs farmers $200,000 to bring a quarter-acre of melon and cantaloupe to maturity. He said drip irrigation would reduce the cost to about $50,000.And, president of the Jamaica Agricultural Society (JAS), Senator Norman Grant, said although the dry conditions have affected the farming community this year, the impact on the sector last year was devastating.In 2014, the agricultural sector suffered losses amounting to $1 billion, with about 18,000 farmers affected.Grant said the drought in 2014 started in April and extended to September. He stressed that it was the worst period of drought that had affected the country in nearly 100 years.Grant said it was too early to predict whether farmers would suffer the same fate this year.The JAS president said the expansion of agro parks would ensure that there was more acreage of land with irrigation to fill any gaps that might exist as a result of the impact of drought."I would also like to suggest that we streamline things such as rainwater harvesting, the erecting of mini dams, and also how we can create a framework for dry-weather farming."He said farmers should move away from the slashing and burning method of clearing land that could exacerbate the problem of the dry spell.The JAS president said that agricultural production for 2015 will either equal or surpass the amounts produced last year."If we get some rain in another two weeks or so, the whole picture would change," he added."It is a challenging time, but the sector is equal to the task."Turning his attention to the massive fires that have devastated hundreds of acres of coffee and other crops in the Blue Mountain area of rural St Andrew, Grant said the Ministry of Agriculture was carrying out estimates of the damage.He said it is estimated that 150,000 boxes, or 1.5 million pounds, of coffee will be produced from the Blue Mountain area this year. He said this represents six per cent lower than the 160,000 boxes produced during the last crop.Grant said the areas affected by the fire include Mavis Bank, Lime Tree, Tower Hill, Flamstead, Salt Hill and sections of Roberts Field in St Andrew.He said in Mavis Bank alone, the estimated losses to coffee and other farmers was $120 million.Grant commended the fire service for carrying out "an excellent job during very adverse conditions".Meanwhile, in terms of the short- to medium-term weather forecast, the Meteorological Service is forecasting above-normal rainfall for most parishes up to the end of June.Meteorologist Adrian Shaw told that during February and March, the parishes of Clarendon, Kingston, St Andrew, St Catherine and St Thomas were hardest hit by the drought conditions.Looking ahead, Shaw said Kingston, St James, Clarendon, St Ann, St Catherine, St Elizabeth, St Mary, Portland and Manchester should receive above normal rainfall up to the end of June.He said normal rainfall is projected for the parishes of Trelawny, Westmoreland, St Thomas and Hanover for the similar period ending June."Going forward, we are looking forward to above-normal rainfall for most areas and normal rainfall for other areas," he asserted.Source - http://jamaica-gleaner.com/

USA - Severe weather season affecting Big Country farmers

It's been an active couple of weather weeks here in the Big Country with rain, hail and even tornadoes. Some of those who have suffered from the damage are local farmers."The rain has been great! It's benefited everybody," states Gage Thomas, a Jones County Farmer.However, it's not the rain that local farmers are complaining about, it's the hail."I've been a lot more fortunate than some people. I have had some hail damage. My uncles wheat farm had lots of hail and it just destroyed it completely," says Thomas.Even though this season's wheat crop might be the best farmers have seen in years, the hail has posed a problem."A lot of other people around this area had the same thing happen. They had a good looking crop and just had it demolished," explains Thomas.Thankfully most farmers like Thomas came prepared by buying insurance earlier in the year."The insurance we buy does give us a peace of mind. It makes you feel a little bit better and it can save you from going broke."Despite the hail damage, farmers are happy for the moisture and expect a successful crop just in time for the harvest."To be a farmer you also have to be an optimist. You got to be optimistic about it. You know that you're taking a chance whenever you plant the crop and put the hard work and money into it. And this is just one more thing that you've got to deal with but we're thankful for that rain that's come with it," says Thomas.According to Thomas, the price of the wheat crop will not be affected in a negative way when it is harvested this year.Source - http://www.bigcountryhomepage.com/

USA - Wet and stormy weather fails to slow planting

Summary- The USDA estimated 75% of corn acres were planted across the U.S. as of May 10th, a 20% increase from the prior week and 18% more than the five-year average.- The soybean crop was reported 31% planted, an 18% increase from last week and 11% ahead of the five-year average.- The winter wheat crop was reported 56% headed, a 13% increase from last week and 11% ahead of the five-year average.Last week the U.S. experienced severe weather in the Midwest, but that did little to slow farmers' planting progress. Corn, soybean and spring wheat planting progress all increased their lead on their respective five-year averages. Some areas reported severe wind and even hail, but it is so early in the season, the chances of crop loss are minimal and there is still ample time to replant if need be. Farmers now look forward to the May USDA World Agricultural Supply and Demand Estimates released tomorrow, which is the first measurement of the USDA's expectations for the coming crop year.The USDA estimated 75% of corn acres were planted across the U.S. as of May 10th, a 20% increase from the prior week and 18% more than the five-year average. Of the five largest corn producing states in the U.S., Minnesota reported the highest level of completion at 95%, followed by Illinois at 88% and Iowa at 83%. Indiana showed the greatest improvement from last week, increasing by 31%, but remains the furthest from completion at 52%.Corn emergence was reported 29% emerged, a 20% increase from last week and 5% ahead the five-year average. Of the five largest corn producing states, Illinois has reported the most emerged corn, at 42%, followed by Minnesota at 39%, and Nebraska at 30%. The wet weather over the past week was a contributing factor to the large increase in emergence this week. Before all of the rain last week, farmers across the Corn Belt expressed how dry their fields were.The soybeans crop was reported 31% planted, an 18% increase from last week and 11% ahead of the five-year average. Of the five largest soybean producing states, Minnesota has reported the highest level of completion at 70%, a 53% increase from the five-year average.The winter wheat crop was reported 56% headed, a 13% increase from last week and 11%% ahead of the five-year average. The USDA estimated winter wheat conditions at 44% "Excellent" or "Good," a 1% increase from last week and a 14% increase from last year. 36% was rated fair, a 1% decrease from last week. 20% was rated "Poor" or "Very Poor," unchanged from last week, but an 22% decrease from last year.The Kansas Wheat Tour ended last week and crop scouts had high praise for the 2014/2015 winter wheat. Areas that have reported severe drought conditions received rains over the past three weeks, easing drought concerns in those areas.The spring wheat crop was reported 87% planted, a 12% increase from last week and a 36% increase from the five-year average. Spring wheat emergence was reported 54% emerged, a 24% increase from last week and a 29% increase from the five-year average.Source - http://seekingalpha.com/

Australia - April rain has harden wheat growers confident of healthy crop

Farmers in the Harden region of New South Wales are confident of a sizeable wheat crop this year, after the arrival of strong rainfall last month.The region, about an hour north of Canberra, is considered one of the most fertile and reliable wheat growing areas in Australia.Agronomist Tim Condon said after a dry summer, the autumn rain was a welcome relief for growers in the area."For the month of April, we've actually had between 50 and 80 millimetres, our long term average is about 45 to 50," he said."So we've had really good opening rains throughout April, and this is our main sowing window."That relief has been shared by fifth generation wheat farmer, Rob McColl."It's in the blood, we know what we're doing, roughly," he said with a smile."Autumn's always very erratic here, so we'll take every opportunity we can to plant, even when we're not quite sure how much moisture's below."With the moisture that we have now, we'll plant with confidence."El Nino forecast has experts concernedBut that confidence could dissipate, depending on rainfall levels throughout the remainder of the year and the possibility of an El Nino weather event."With the forecast of an El Nino this spring, getting the front end of the cropping system right is important," Mr Condon said."So getting your crop established on time, with all the right herbicides and nutritional strategies to get the crop in, and up and established."Mr Condon said farmers needed consistent spring rainfall to turn a profit."It means the difference between a yield of 2.5 tonne, and 5 tonne [from] a hectare of wheat, and that top end yield is where all the profit comes from."Profit levels will also rely on production levels in the United States and Europe, which will have a major impact on the prices local growers receive for their crops.Grain broker Graham Martin-Dye said despite predictions that the US wheat price could double by the end of the year, local growers should be cautious in their optimism."Because we've had our rain here, and we look like we're going to have a fairly good year, at the moment, it is still fairly early days, if the US price does rally we may not rally as much," he said.Source - http://www.blackseagrain.net/

Switzerland - Crop damage up to 3 million CHF

After the heavy rain at the weekend many fields are under water. There was damage particularly in the cantons of Fribourg, Bern, Solothurn and Aargau.Many crops are under water. To make matters worse the crops are still at a very early stage. "It is difficult to assess the situation right now," says Thomas Wyssa, a vegetable farmer from Galmiz FR.400 damage reportsA lot of water is in the fields especially in the lower areas. It will be difficult, to recover those crops, Wyssa continues. "The carrots and potatoes could rot," he fears.According to Schweizer Hagel, an insurance company, chiefly potatoes, vegetables and other field crops are affected. There have been 400 damage reports already. The insurance estimates the damage around 3 million francs.How will the affected farmers be compensated? To answer that, it is important to establish if the crops can survive or not. If they can, the yield loss at harvest time will be compensated. If the crops are unable to be harvested the costs to replace the same or a different culture is compensated.Entire amount of May rain already fallenAccording to an announcement by Meteo Switzerland the rain fall during the past three days normally falls in an average May month. In Changins at Lake Geneva, in Aigle or in Neuenburg the average amounts of rain in May have already been met or even exceeded.Source - http://www.freshplaza.com/

Austria - Heavy hailstorms cause massive damage in agriculture

Tuesday night (5. May 2015) the "hail season" started in the districts of Krems an der Donau, Tulln and Korneuburg of Lower Austria with unusually heavy hailstorms. Up to 3 cm large hailstones caused damage to more than 5,000 hectares of agricultural land amounting to approximately EUR 5 million. An area of approximately 3,000 hectares with wine cultures, rape and fruit, was seriously affected."The storm, relatively early in the year, had dramatic consequences for the farmers. Such massive hailstorms usually do not occur before the end of May,” said Dr. Kurt Weinberger, CEO of the Austrian Hail Insurance Company.The Hail Insurance has insured more than 80 percent of agricultural land in Lower Austria against hail. The damage assessment by experts is already underway to ensure efficient handling of claims. "Professionally conducted damage assessments by experts and prompt payments of claims to farmers is the top priority for us this year," says Dr. Kurt Weinberger.Source - http://www.freshplaza.com/

USA - State hail board officials discuss reinsurance options

The Montana State Hail Board is preparing for the upcoming season, looking into new reinsurance options just in case to see a bad hail year.While last year was average, 2013 was a record hail year.Officials said the program to provide farmers coverage has been around for almost 100 years. Farmers can insure crops against hail damage, but to keep the program funded, the state said it needs to update it."How we will make sure that every claim is covered for the 2015 season. So we need to just re-evaluate how we are going to be paying those and make sure that the program will be financially sound so that all of those claims will be paid," said Jana Mertens with the Montana State Hail Board.The Montana State Hail Insurance Program was created in 1917 to provide basic hail insurance coverage for any crop grown in Montana.Source - http://www.nbcmontana.com/

Bolivia - Heavy rains harm quinoa production in Oruro

Heavy rains in the Bolivian department of Oruro in March significantly affected quinoa production."The rains were so intense and occurred in the municipality of Turco, thus affecting the production of quinoa by 20 percent, a thousand 420 hectares," told the elected council, Germán Bedoya Brand.According to the official snowfall occurred in February also hurt the potato production in the municipalities of Turco, Curahuara Carangas, Corque, Andamarca and San Pedro de Totora, on an area of 765 thousand hectares.However, Bedoya assured that many of these municipalities have their crops protected with the National Agricultural Insurance Institute (INSA).According to the National Statistics Institute (INE) of Bolivia national exports in 2014 amounted to 196.64 million dollars, higher than a year earlier, when the amount was fixed at 153 260 000.The data shown by the INE indicate that Bolivia is a major producer of quinoa in the world, ahead of Peru, which reached just over $ 187 million.Source - http://www.plenglish.com/

India - Private firms to make nets for orchards, crop cover

The state government has decided to rope in private industries to manufacture quality nets locally to reduce the cost of protecting grapes, orchards and crops from unseasonal rain and hailstorms.District guardian minister Girish Mahajan said on Saturday that local manufacturing of the net would bring down the cost by 50%. Farmers have to buy imported protection nets for crops at the cost at Rs 6.5 lakh per acre.Unseasonal rain and hailstorms badly affected grapes, pomegranates, onion and other crops in the district in February and March. The hailstorms have been hitting the district for the past three consecutive years. Hence, farmers need to focus on protective farming by utilising nets to cover their orchards and crops.Source - http://timesofindia.indiatimes.com/

USA - Avian Flu hits Minnesota: A reminder to manage risk

As we talk about legacy plans to transition your farm business to the next generation, let's not forget we need to manage risk to make sure there will be a business for the next generation.That reminder hits close to home for those of us in Minnesota, where an outbreak of avian flu has hit 82 farms and more than 5.5 million birds, according to the Minneapolis Star Tribune.Many operators are reporting dramatic financial consequences as they lose every bird on the place, and their facilities are shut down for months to remove the infection. Of course, you want to have appropriate insurance to cover your investment, but even the best insurance can't really address a setback like a total crop loss or entire herd or flock depopulation.Catastrophic losses like this point out a common risk for any agricultural producer -- and most other small business owners – not enough different revenue sources.Many times successful business owners talk about investing their profits from a good year "back into the business." The risk here is that all the owner's equity is in a single enterprise with one source of income. The opportunity for the careful owner is to use profits from good years to create complimentary income streams.Multiple complimentary income streams are a great asset to any operation. As we think about creating a legacy for the next generation, we need to build a healthy, productive and resilient business in the present. It gives us more flexibility as we exit, and creates more options for the next generation as they move forward.It could be a complimentary business, alternative crops or maybe its investments in income-producing assets based outside your industry. The advantage of an income investment is that it doesn't require you to manage an additional business enterprise. When done right, you can get supplemental income while being a passive owner.Source - http://farmfutures.com/

USA - Crops suffer through the drought

The cotton and wheat industry in Southwest Oklahoma has suffered major economic losses as a result of the ongoing drought.Tom Buchanan has been growing cotton since the 80s and has been the manager of the Lugert-Altus Irrigation District since 2004. He says they have records that date back to the 40s that indicate the irrigation district has been able to deliver water and produce a crop every year, except for one time in the 1950s. However, due to the drought, they haven't been able to irrigate since 2010."We are setting historic records and not the kind that you want to set as a result of this drought. It is as tragic as I've seen," explained Buchanan.The last time the Lugert-Altus Irrigation District was able to release enough water to produce a successful crop was in 2010."There was just a complete failure in 2011, 2012 and 2013. In 2014 we did harvest a little bit of a rain fed crop, so to speak, more of a dry land crop, but we still harvested around 300 pounds; should have been making somewhere around 1500-2000 pounds," Buchanan said.The district's 50,000 acres generate about $275 million in revenue. During 2014, only 30,000 bales were harvested, which brought in only $15 million. So, after complete misses in 2011, 2012 and 2013, and a partial crop in 2014, that's a dramatic loss in revenue."We've been burning the equity, we've been living on our savings. It's certainly time to get another good crop to build that bank account back up," said Buchanan.Producers, Buchanan says, were in pretty good shape equity wise prior to the drought to withstand the downturn, and crop insurance has helped plug the hole."Crop insurance does not take the place of good crop, but crop insurance will keep you rolling and try it again next year is about all its good for. Producers are still hanging tough, they're still planting crops and they're still trying to grow a crop," said Buchanan.Farmers, he says, are no different than the average business owner; they are constantly looking for another crop that would provide the cash they need to pay their bills and feed their families.“Our winter wheat, for example, is still producing crops, now nowhere near what it ought to, but we are making winter wheat crop,” said Buchanan.He says winter wheat is the second most lucrative crop for farmers in the irrigation district."Using it for grazing in the winter, and then into early march to be able to put some pounds on some stockers. Even in this drought time, irrigated cotton, or the possibility of an irrigated cotton crop, is the best chance of a return on our investment," said Buchanan.Buchanan says impacts are occurring across the board in agriculture, so the infrastructure that supports the cotton industry is suffering as well."Cotton gins, cotton compress where cotton is stored, those facilities are also suffering because if there's not a product to process then there's no need for that facility," said Buchanan.He says if the cotton gins and warehouses aren't being used, then there's also no need for the employees that run those facilities."Many producers are at a skeleton crew now, the irrigation district itself is at a skeleton crew of what it used to be," said Buchanan.Buchanan says they will go ahead and seed the fields for cotton, but will have to wait and see what Mother Nature will do for the lake."The river bed is wet, it's ready to flow water if a rain does come, and this is our rainy part of the year. April, May and June is when we get the significant portions of our inflow,” said Buchanan.He says if the lake remains low, then 2015 will mark the fifth year they haven't been able to irrigate."We'll have another rain fed crop and hope that later in the year we can get adequate in-flow to start irrigating at that time," said Buchanan.Buchanan predicts a change in the air as this spring, he says, is different than the past.“We are starting to get some rain storms, it's kind of returning back to that weather pattern when that dry-line would setup and we'd get those thunderstorms and get those good rains. So, maybe this drought is starting to break a little bit. We're a hearty bunch, we're very optimistic and believe that the good year is just around the corner,” said Buchanan.When we first spoke with Buchanan, the lake was sitting at about 12 percent. After the rainfall we've gotten in the last week and a half, the lake level has doubled. At last check, it was at nearly 25 percent, but the possibility of an irrigated crop this year is still unknown.Source - http://www.kswo.com/

Bulgaria - Apricot growers guaranteed to receive aid

Bulgarian fruit and vegetable producers have been informed by the Committee on Agriculture that they can count on receiving support under the de minimis aid programme, although specific details have yet to be finalised, as stated Nikolay Kolev, chairman of the Association of Danube growers.This year, the situation for fruit growers is very risky as a result of constant rainfall and recent frosts after the early flowering of some fruits, particularly apricots, which have already suffered considerable damage.Because of unstable weather this spring, many fruit and vegetable producers have also been forced to do more spraying compared to previous campaigns, but according to Nikolay Kolev, even that didn't save the crops for some colleagues. In his words, this is a widespread problem which has reportedly also affected apricot growers in neighbouring countries, such as Greece.Source - http://www.freshplaza.com/

India - Rain damage for bananas in Goa

Goa experienced unexpected showers on Tuesday evening due to sudden cloud formations caused by increased heating of land.Agriculture officials said that though the mango crop will not be affected much as most the fruit has been harvested, they said that banana plantations could be hit due to the heavy winds accompanying the showers. "Mango prices are unlikely to be affected due to the showers as most of the fruit has been harvested already," said Ulhas Pai Kakode, deputy director of agriculture (farming).Officials said that they have received complaints of damage to banana plantations across Goa on Tuesday due to the winds accompanying the showers.The officials said that crops like chillies are, in fact, expected to have benefitted from the sudden showers, chillies grown in interiors of Goa often suffer from lack of adequate irrigation facilities.Source - http://www.freshplaza.com/

Ukraine - Serious grape losses from frost

Production of grapes in Crimea, may significantly go down in 2015, says Mr. Vladimir Yarmilka, International Grape Expert.A year-on-year fall in production volumes will most likely be registered due to unfavorable weather conditions in winter and spring."Vineyards have suffered serious losses due to sharp drops in temperature registered in Crimea in January, March and April," says Mr. Yarmilka. "As a result, losses of the grape crop may reach 40-60% in some farms."However, the expert says that such forecasts are preliminary, and they will be updated in late May.Mr. Yarmilka also adds that Crimean growers will still face problems with sales of table grapes in the current season.The same situation with vineyards is observed in the southern regions of mainland Ukraine.Source - http://www.freshplaza.com/

Africa - Namibian farmers advised to destock

Government has announced comprehensive financial aid due to the prevailing drought, which has severely affected most parts of the country and has advised farmers to destock to avoid serious losses.The Ministry of Agriculture, Water and Forestry (MAWF) is urging livestock farmers, who do not have enough grazing for animals, to sell their livestock while they are still in good condition, as the effects of drought worsen.Furthermore, selling animals in good condition means receiving optimum prices for them. Therefore, farmers are advised to destock as soon as possible in order to safeguard their livelihoods.Abraham Nehemia, acting Permanent Secretary of MAWF, says farmers who heed the ministry's advice to destock in a bid to mitigate the effects of the drought would be able to participate and benefit from the ministry's Livestock Marketing Incentive and the Lease of Grazing and Transport schemes.The two schemes to be implemented, follow a government announcement of an interim drought relief programme of some N$300 million recently after a thorough study was completed on the situation of crop farmers and food security.Source - http://allafrica.com/