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12.02.2016

Philippines - PCIC pays P9.2 insurance claim of farmers

The Philippine Crop Insurance Corporation (PCIC) said in a press statement that to date it has already approved claims amounting to P9.2 million. Charlito Brilleta, PCIC regional manager, said that these are indemnity payments for 1,700 claims which is 58 percent higher than that of the same period last year. “The average monthly claim last year reached only P3.8 million,” Brilleta said, adding that they are still processing more than 2,000 claims filed in December 2015 and January 2016. “We are still verifying these claims which may total to P45.217 million,” he further said during the meeting of the Provincial Disaster Risk Reduction and Management Council. Brilleta said that the claims they received during the first two months of 2016 involved damages due to drought. “Last year most of the claims were due to pests and plant diseases, except for the last quarter which were due to El Nino,” Brilleta said. He added that the P9.2 million indemnity payment covered 1,518 hectares of rice lands, with the City of Passi having the most number of claims by 424 farmers. The town of Lemery came next with 216 farmer-claimants, Oton with 200; Duenas, with 123; Banate, 105; and, Sara, 95. Last year, Passi City was also highest with 1,158 claimants, then Duenas with 1,028; and, Banate, 775. Farmers eligible to claim crop insurance are listed under the Registry System for Basic Sector in Agriculture (RSBSA). Meanwhile, the Iloilo Provincial Disaster Risk Reduction and Management Council has approved a budget of P33.7 million as prepared by the Task Force El Nino, for programs and projects to address the impact of the dry spell. Source - news.pia.gov.ph

12.02.2016

USA - Malt barley offered crop insurance

Crop insurance for malt barley will be available for Alberta growers this year. The idea grew out of a resolution submitted to the Alberta Barley Commission in 2014 where growers argued coverage under commercial barley insurance did not reflect the risk to growers, said Jesse Cole of Alberta Financial Services Corp. There is higher growing risk and additional quality risk associated with malt barley, but there were also some challenges that prevented a specialized insurance program in the past, he told the Western Barley Growers Association annual meeting in Calgary Feb. 3-4. AFSC wanted premium cost sharing with the federal government and there needed to be assurances the program was trade neutral. Malt barley is not visually distinguishable from feed and it is hard to determine what’s being grown intentionally for malting end use. Maltsters may also have different requirements for acceptable barley. “There are a bunch of different standards between companies so it is difficult to pin down what quality level we could insure,” he said. To be eligible, the producer must have a contract for more than 40 tonnes. The contract can be with companies outside Alberta. Eligible varieties come from the Canadian Malting Barley Technical Centre’s recommended variety list or anything specified on the malt contract. A producer cannot insure at the malt level if feed varieties are grown on the same farm in the same year. Cole said among the 6,000 barley AFSC clients, 376 will have to insure at the commercial level. Doug Robertson, chair of the barley growers association, said a declaration should be considered for those who grow both. There are new categories of wheat coming and they face a similar situation, he said. Source - producer.com

12.02.2016

Everest’s Crop Insurance Operation Announces Strategic Alliance with Global Ag Risk Solutions (GARS)

Everest Re Group, Ltd. announces strategic alliance between its U.S. crop insurance unit, Heartland Crop Insurance, Inc., and Global Ag Risk Solutions (GARS). This new and exclusive partnership will deliver GARS Production Cost Insurance to farms across the U.S. through Heartland agents. Utilizing its comprehensive infrastructure and in-depth capabilities, Heartland will provide the Production Cost Insurance product to farming operations across the country. The new Heartland-GARS alliance is effective for business beginning in the 2016 Crop Year. Wade Shuler, President of Heartland Crop Insurance, Inc., commented, “We are proud to partner with GARS as the only U.S. crop insurance provider able to offer this innovative protection to U.S. farming operations. This groundbreaking product provides the American farmer individualized protection specific to their own farm and insures all of a farmer’s variable inputs and a significant portion of their fixed costs as well. We are excited to be at the forefront of this new venture and support its success with our broad agent network, leading claims services and strong balance sheet. We look forward to a long and beneficial relationship with GARS and their outstanding team.” Heartland Crop Insurance, Inc. is part of Everest Re Group, a world leader in property and casualty reinsurance and insurance, with an A.M. Best rating of A+ (Superior) with a stable outlook. Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the U.S. and international markets. Everest Reinsurance (Bermuda), Ltd., including through its branch in the United Kingdom, provides reinsurance and insurance to worldwide property and casualty markets and reinsurance to life insurers. Everest Reinsurance Company (Ireland), Limited provides reinsurance to non-life insurers in Europe. Mt. Logan Re, a segregated cell company, capitalized by the Company and third party investors, is a specialty reinsurer of catastrophe risks. Everest National Insurance Company and Everest Security Insurance Company provide property and casualty insurance to policyholders in the U.S. Everest Indemnity Insurance Company offers excess and surplus lines insurance in the U.S. Everest Insurance Company of Canada provides property and casualty insurance to policyholders in Canada. The Company also operates within the Lloyd's insurance market through Syndicate 2786. Additional information on Everest Re Group companies can be found at the Group’s web site at www.everestregroup.com. Global Ag Risk solutions (GARS), based out of Western Canada developed the world’s first margin protection product launching in 2011. Since that time Production Cost Insurance (PCI) has covered Western Canadian farmers allowing them to maximize their inputs adding more coverage with every additional dollar spent on fertilizer, seed or chemical, without increasing premiums. GARS is entering its sixth year of insuring Canadian growers and now through Everest launching in the USA for 2016 crop year. Source - businesswire.com

12.02.2016

Philippines - Cebu to provide El Niño crop insurance

As other provinces are battling to save crops, Cebu farmers will need not worry about the effects of the drought brought about by El Niño. According to provincial agriculturist Dr. Roldan Saragena, the farmers in Cebu can avail of an insurance for the crops and their livestock. The insurance program could give them at least P10,000 cash per hectare of crops destroyed not just by the drought but by other calamities as well. Saragena assured all premiums will be shouldered entirely by the provincial government for farmers and fishermen in the 51 component cities and towns. At least P10 million have been allocated by the Capitol in 2016 to finance the premium for the insurance. The insurance will cover crops, livestock, and also farm folks, mainly farmers and fishermen. Identified farmers aged 15 to 80 years old can avail of the benefits design primarily for the "extreme" El Niño phenomenon forecasted by the state weather bureau occurring this year. Farm folks who are interested to avail of the benefits will need to visit their town or city's local agriculturist office to process their insurance documents. Even when the dry spell is expected to last until the first quarter of 2016, Saragena said Cebu has yet to feel the direct effects of drought owing to the heavy and moderate rains affecting the province during the last two weeks. Since the insurance program's launch in 2015, some 30,000 individual farmers have already availed of the scheme. This came in handy during typhoons Queenie and Seniang, and at the first occurrence of the El Niño in May last year. Crops covered include corn, rice, vegetables, and fruit trees like mango. Livestock for the Capitol's free insurance program covers cow, carabao, and goat. Under the "accident dismemberment security scheme", insurance is also ready for farmers and fisher folks in case of accidents. The Capitol is paying the premium computed by the Philippine Crop Insurance Corporation, which is paid per planting season. The amount paid by the provincial government varies from the number of hectares which the farmer seeks to insure. Source - cnnphilippines.com

11.02.2016

Australia - Crop insurers to target WA this year

WA growers can expect to be a prime target for multi-peril crop insurance products in 2016 as insurers broach the market on a widespread basis for the first time. This was revealed at a WAFarmers and Grains Research and Development Corporation (GRDC) event on the topic last week featuring the opportunity for growers and advisers. Speaking for insurance brokerage Australian Reliance, principal Peter Burtenshaw shared his market insight that WA growers could expect multi-peril crop insurance to be on the agenda for many insurers this year. While Latevo was the only insurer around in 2015, he listed several companies offering products in 2016 and said WA was a "spread of risk" for insurers who were dealing with more risky insurance buyers in New South Wales, Queensland and Victoria. He said the move to using multi-peril crop insurance was not suitable for all farm businesses and detailed farm history and costings would help growers map their needs. "Almost every farmer I know insures their assets for that one-in-seven-year event," he said. Mr Burtenshaw said in reality however, these events were appearing more often and margins were tighter and this was where multi-peril products could help. "Should someone knowing the risk of a loss is much higher and frequency is much greater insure?" he said. "Or does it become a commercial reality of running a business in terms of this happening every five or six years (and needing multi-peril coverage)." The event also included presentations from John Thompson of Hall Chadwick and WAFarmers vice president Tony York on a personal level as a multi-peril crop insurance cover buyer. It was attended by more than 80 people and WAFarmers chief executive officer Stephen Brown said the information would help attendees de-risk farm businesses. "The definition of risk has changed considerably over the last three decades," he said. "WA weather can be incredibly varied and severe, and as global warming continues to impact the climate in our State, the importance of having insurance against weather events cannot be overstated. "Over the last two years, WAFarmers has spent considerable time and money attending industry events and seminars on MPCI as we believe this product, when fully matured and developed, has the potential to be the next big thing in agriculture, de-risking the operations of many farmers in highly volatile rainfall areas." While multi-peril crop insurance has been targeted at grain growers, Mr Brown said it could also be extended to cover a variety of other crops for the both the fruit and vegetable industries, with a recent case being the significant damage to fruit and potato crops in and around Manjimup as a result of recent heavy rain and resultant flooding. Mr York highlighted to the crowd the decision to invest in multi-peril crop insurance was a budget decision, where a return could not always be expected. Instead, he said growers should consider it a safeguard for their business. "The best way I look at it is the risk isn't the same as it was 30 years ago," he said. "Looking back and analysing since I was growing crops as a 20-year-old, for every dollar I put in the ground I was going to get more than $3 back in an average season. "If I put a dollar in the ground now and if things go well I'm going to get $2 back. "My margin has just shrunk, it's not there and on top of that I've got new technology and I'm invested in sophisticated farming systems so I'm spending more money to put the grain in the ground. "If things go wrong for me now it really hurts and it doesn't seem just. "It's cruel it's unfair, it doesn't make sense." Mr York said he and his brother would be investing again in multi-peril crop insurance despite not making a claim this year. "In an economy that's encouraging you to build your business - you want to match the rest of the population so you keep pushing your business," he said. "But you get a bad year and it wipes you out. "We had an ok year last year. "So you could say we just threw that money away by taking the policy as we didn't make a claim and it's been a drain on our cash flow. "But I'm pretty sure we will take that policy out again next year because we don't want to go through that process of that one-in-10 or one-in-15 year event which has happened more than once in the last 15 years." Source - farmweekly.com.au

11.02.2016

USA - Obama budget cuts crop insurance, funds summer meal program

Funding for a nationwide initiative to feed poor kids during the summer and cuts to the crop insurance program are included in President Barack Obama's proposed fiscal 2017 budget, released today. “The budget includes proposals for USDA's crop insurance program that would incentivize farmers to choose production practices that minimize climate-change impacts, discourage farming on environmentally sensitive lands and highly erodible soils, and enhance resiliency in the future through soil protection,” according to the text of the budget proposal. “These include reducing the farmers' subsidy by 10 percentage points for harvest price revenue coverage and reforming coverage for prevented planting.” In a more detailed explanation, a USDA fact sheet says the budget contains two proposals to reform the crop insurance program: “The first would reduce subsidies for revenue insurance policies that insure the price at the time of harvest. The second would reform prevented planting coverage, including removing optional buy-up coverage. These proposals will modify the structure of the crop insurance program so that it is less costly to the taxpayer, yet still provides a safety net for farmers. Collectively, these proposals are expected to save $18 billion over 10 years,” including $1.26 billion in FY 2017 alone, according to the fact sheet. In December, Congress rejected an attempt to cut the crop insurance program by $3 billion over two years. Senate Agriculture Committee Chairman Pat Roberts, R-Kan., called the budget proposal “dead on arrival.” “As farmers and ranchers are faced with the daily uncertainties of weather and volatile market conditions, the Obama Administration has once again chosen to attack America's agriculture producers and their ability to manage risk,” he said in a statement. “The president is hitting rural America where it hurts most,” at a time when USDA estimates that farm income has fallen 56 percent in the past three years. Roberts added that “farm country is tired of overzealous regulations and persistent attacks on rural America. While the budget proposals are essentially dead on arrival, we must hold USDA and the administration accountable for their actions and be vigilant in protecting the interests of our hardworking farmers, ranchers, and business owners in rural America.” The summer feeding program would be funded at $12 billion over 10 years. The goal is to “ensure all children have consistent and adequate access to nutritious food year round by proposing a permanent, nationwide expansion of the Summer Electronic Benefits Transfer for Children (Summer EBT) program. This program will provide families with children eligible for free and reduced price school meals access to additional food benefits during the summer.” The budget also would boost funding for agricultural research in three areas: $700 million for grants through USDA's Agriculture and Food Research Initiative (AFRI), including $325 million in mandatory funding, double the 2016 funding level. “AFRI-supported research would enable USDA to respond to critical problems and challenges facing the nation such as ensuring an abundant supply of safe water for agricultural uses, responding to climate change, understanding and restoring soil health, and improving food safety and quality.” $1.2 billion for “in-house research” at the Agricultural Research Service, which includes increases for current and new programs for climate change resilience and vulnerability, pollinator health, agricultural microbiomes, responding to antimicrobial resistance, as well as research on foreign animal diseases, soil health, avian influenza, and for safe and abundant water supplies to support agricultural production.” $94.5 million for “construction and renovation of key infrastructure investments based on USDA's facility modernization plan.” USDA said the proposal would fund: “modernization of the Foreign Disease - Weed Science Research Laboratory, where scientists research foreign plant pathogens that pose a potential threat to American agriculture.” Improvements also would be made to the Agricultural Research Technology Center, where research is conducted on alternatives to methyl bromide as a soil fumigant for control of soil-borne pests. “The research also develops scientifically based organic crop production practices and methods for weed, insect, and disease control. Specifically, USDA would receive $61 million, “an increase of about $35 million, to address antimicrobial resistance in pathogens of humans and livestock, and to seek answers to key questions about the relationships among microbes and livestock, the environment, and human health,” the department said. The budget would change the way wildland fire management is conducted. It “funds suppression for the most severe fire activity, including large fires that require emergency response, are near urban areas, or are for abnormally active fire seasons, as extraordinary costs that are outside the discretionary budget caps,” USDA said. “The budget recognizes such fires as natural disasters. Importantly, because this funding would not allow the total funding available under existing cap adjustments to grow, it would not increase overall discretionary spending.” The budget proposes a $25 million increase in competitive research funding to support development of biobased energy sources, USDA said. It also contains $450 million for the Rural Energy for America Program to help farmers and rural small businesses develop renewable energy systems and make energy efficiency improvements using loans and grants. The budget also would provide $6.5 billion in loans to rural electric cooperatives and utilities to support the “transition to clean-energy and increased energy efficiency,” USDA said. Source - agri-pulse.com

11.02.2016

USA - Despite Drought, California Farmers Report Record High Crop Value

California farmers sold crops worth a record $54 billion, according to new numbers released from the California Department of Food and Agriculture. The annual crop report is for the 2014 year. The numbers show a 5 percent increase in crop value versus the previous year, despite the drought. Dairy products remained the state's number one crop at over $9 billion dollars statewide. Almonds came in second at nearly $6 billion. The report only tracks the total value of the crops grown by the state's 76,000 farmers, not profit. The state estimates that the drought cost farmers about $2 billion overall. Source - kvpr.org

11.02.2016

Australia - Harvey dairy farms hit by second fire

HARVEY'S dairy industry has been hit by bushfire for the second time in less than a month. On Monday afternoon a bushfire that was first reported at 2.30pm the previous day, burst out of tea tree scrub country onto the back of Graham Manning's dairy farm about 10 kilometres south west of Harvey. Firefighters and neighbours helped Mr Manning battle the blaze in horrendous conditions of 40((xB0))°C temperature and strengthening winds. "We had great support," Mr Manning said on Tuesday as he struggled to restore a permanent water supply to his dairy before the afternoon's milking. "We've still got the dairy, house and the sheds. "We lost all our dry land and some fences. "We've got no water to the cows and there's no power, the power lines that were on wooden poles that ran along the back of us are on the ground. "Two of the big towers (high voltage transmission towers) behind us went over, just keeled over in the fire, that's how hot it was." Mr Manning said he had moved the cows away from the back of the farm before the fire arrived and was able to milk on Monday afternoon and Tuesday morning using a generator. He said he believed his farm was the worst affected by the fire. Another local dairy farmer, former Western Dairy chairman Dale Hanks, summed up how Harvey residents felt about the bushfires. "We've had more than our fair share so far this year," he said. Mr Hanks' farm, closer to Harvey than Mr Mannings, was threatened by the Waroona bushfire but not the latest fire. "We were covered in smoke and the wind was picking up on Monday night and I said to my wife we might be in for a rough night, but it turned alright, the fire was south of us," he said. More than 150 firefighters from volunteer bushfire brigades, Department of Fire and Emergency Services and Department of Parks and Wildlife battled the fire in extreme conditions. It burned out more than 1120 hectares of mainly scrubland between the South Western Highway and Forrest Highway south of Harvey. At various times it threatened Harvey, Wokalup, Thornton housing estate and Myalup Freshwater Lakes estate in Harvey Shire. On Monday firefighters also had to contend with a second fire which started in suspicious circumstances east of Harvey townsite. Source - farmweekly.com.au

11.02.2016

Australia - Smaller veg growers feel the strain

THE days of the veggie-growing hobby farmer could be numbered. An Ausveg-commissioned discussion paper has found smaller scale vegetable growers are financially worse off than their bigger counterparts. Entitled, Analysing Australian vegetable growers' financial performance by farm size, the report shows that the larger a farm, the more profitable that farm is likely to be. The information is based on Australian Bureau of Statistics (ABS) and the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) data. The paper analyses the financial performance of vegetable growing farms by farm size (in hectares), for the period 2011-12 through to 2013-14. The paper states the costs to receipts ratio (average farm costs as a proportion of their receipts) is notably higher for farms of less than 5 hectares compared to all other vegetable growing farms. Larger scale vegetable growers are found to be in a better position due to cash receipts increasing by a higher proportion than cash costs as farm size increases, which is exemplified by the costs to receipts ratio. The report says smaller sized farms incur greater cash costs per tonne of output, which they would be able to dilute by increasing scale of operations. But it warns "going big" needs plenty of homework. "Any farm looking to remain financially viable, or increase their productivity and profitability, will require a long term investment strategy to ensure they can effectively reduce costs and increase revenue sources," the report said. Ausveg spokesperson Shaun Lindhe said Australian vegetable growers are struggling with the heavy burden imposed by high costs of production. "We know that their average profit has been on a continuous decline since 2010,” he said. “However, the vegetable industry is made up of businesses ranging widely in size, so looking at absolute financial indicators such as average profit or cash costs across the entire industry can give a misleading picture of how farms of particular sizes are faring. “For example, while the average profit across all vegetable-growing farms dropped to $39,000 in 2013-14, smaller operations – those under 5ha, and those between five and 20ha– actually lost money." The idea behind the discussion paper is to allow vegetable growers to compare their own financial performance to that of other operations within the same size category. Interestingly, the relative expenditure on particular cash costs as a share of total cash costs stays relatively the same for all farm sizes. This is particularly true in the area of labour where costs tend to constitute about a 17-20 per cent share of total cash costs for all farm sizes. The paper also encourages larger producers to invest in research and technology in order to lower costs in some areas, such as decreasing labour costs through new technology. "However, by embracing emerging technologies, exploring new avenues for revenue raising and having a forward outlook on business viability, vegetable growers should be able to improve upon their business outcomes," the paper said. Source - farmweekly.com.au

11.02.2016

India - Crop insurance scheme may leave out tenant farmers

The Pradhan Mantri Fasal Bima Yojna (PMFBY), which the NDA government showcases as the shield against all risks faced by farmers, has failed to be universal because there is a need for a comprehensive crop and income insurance scheme covering income and yield risks for all farmers and all crops. All India Kisan Sabha joint secretary Vijoo Krishnan said on Tuesday that farmer suicides had continued nationwide for more than two decades since the neo-liberal economic policies were put in place. “However, the ruling classes have sought to underplay the unprecedented human tragedy and linked the plight of farmers to the weather. What Prime Minister Narendra Modi is proposing is to insure farmers from the vagaries of nature. What is actually required is to insure them from the adversities created by deliberate government policies,” he said. He said the PMFBY continued the mandatory covering of loanee farmers. Non-loanee farmers, tenant farmers and share-croppers were likely to remain outside its ambit. “Dalits and Adivasis, socially and economically oppressed, will also be excluded from the scheme. To be truly inclusive, the Central and State governments must subsidise the entire premium for the poor, small and marginal farmers, tenant farmers, share-croppers as well as Adivasi and dalit farmers,” he said. The central committee of the All India Kisan Sabha met in Delhi and discussed the situation. Mr. Krishnan said members felt that trade liberalisation and free trade agreements exposed farmers to the volatility in world markets. An uncontrolled increase in input prices, coupled with a fall in the prices of farm goods, had become a regular phenomenon. MSP did not cover production cost, he pointed out. Source - thehindu.com

10.02.2016

Ghana - Insurance student hopes to help at-risk farmers cope with climate change

In less-developed countries, a single season of drought can lead to crop losses that threaten the livelihoods of tens of thousands of small farmers. While agricultural insurance could help, most traditional policies are too expensive for farmers in these countries. Groups such as the International Fund for Agricultural Development have sought to create index-based insurance options that pay out for losses based on an independent, objective measure linked to crop yield. But identifying that measure — finding the right trigger mechanism that recognizes the true level of risk while providing an affordable policy option — has been elusive. Adolph Okine, a first-year Ph.D. actuarial science risk and insurance student, has developed such a model that uses data-based triggers to create index-based insurance options. The model is designed to help farmers in Ghana and other developing countries cope with the effect of climate change and improve the stability of the agricultural industry that is subject to increasingly unstable weather patterns. Innovative statistical appoach The University of Wisconsin School of Business student has collaborated with Askar Choudhury, James Jones and Raquiba Choudhury of Illinois State University, using an innovative statistical approach to analyze data by finding a trigger point that would initiate payment for crop loss through a simplified, index-based insurance policy. The approach is designed to be less costly than traditional agricultural insurance policies. “Index-based insurance policies can give farmers in developing countries the safety net they need to break the cycle of poverty that even just one year of drought and crop losses can cause,” says Okine. “Our goal was to bring stability to the practice of agriculture in the developing world by looking at rainfall data and finding a reasonable trigger that would signal payment for crop loss. We hope this model will lead to the creation of a fairly priced index insurance product to help farmers struggling to deal with climate change.” Justin Sydnor, Okine’s adviser and an associate professor of risk and insurance at the Wisconsin School of Business said the potential for index-based insurance policies to help mitigate the risks farmers in developing countries face is creating “a great deal of excitement.” “Adolph and his co-authors’ method of using data to identify a trigger point for index policies should be an important and practical step toward improving the quality of these plans,” Sydnor said. “He is using cutting-edge statistical techniques to answer important questions in insurance.” Changing weather patterns Farmers in the developing world who have been left vulnerable to crop losses as a result of changing weather patterns and reductions in rainfall could benefit from an affordable, index-based insurance product. The index-based tool was developed to promote agricultural and rural development by helping farmers manage the risk of drought and crop loss, while providing an alternative method of funding disaster recovery assistance programs in areas that rely on agriculture. Okine said what makes his data-driven approach different from prior attempts to create index-based insurance products is that it sought to find the balance between recognizing the likelihood of risk and offering protection at an affordable price point. In Ghana, farming represents 36% of the country’s gross domestic product and is the main source of income for 60% of the population. Providing a viable means of insuring crop losses in Ghana and other developing countries can have significant impacts. Need for affordable crop-loss insurance “There’s a great need for affordable crop-loss insurance because weather shocks can trap farmers and households in poverty, and the risks associated with agriculture limit the willingness of farmers to invest in measures that might increase their production and improve their economic status,” Okine said. Okine and his co-authors were recently honored by the Journal of Insurance Issues and the Center for the Study of Insurance Regulation with the Best Paper Award for their “Drought Triggered Index Insurance Using Cluster Analysis of Rainfall Affected by Climate Change” paper. Source - propertycasualty360.com

10.02.2016

Cuba - Potato crops damaged by the rain

The rainfall in November, December, and January in the western and central parts of Cuba didn't allow Cuban farmers to achieve a crop yield similar to the one they got last year, when they collected 120,000 tons of potatoes. Producers are very worried after seeing the fields covered by water and the advancement of pests and diseases associated with this phenomenon. Given the damage to crops caused by rain, the cooperative and peasant sectors are trying to replant the salvageable plantations, and planting short-cycle crops in the areas that are not salvageable. Thus, producers can take advantage of the fertilizers and manures used in potato crops; a very demanding sector. Cuba continues producing potatoes despite the increase in production cost that importing high quality seeds, insecticides, and other necessary inputs represents. Source - freshplaza.com

10.02.2016

USA - Crop "Insurance" is a Misnomer

Crop "Insurance" is a Misnomer It’s a complete misnomer even to call the federal crop insurance program “insurance.” It works nothing like the private insurance market because taxpayers pay about 60 percent of the premiums, all the costs of administering the program and a large share of the claims payouts. Moreover, what crop insurance deems a “loss” bears little resemblance to any actual financial losses a farm family experiences. The cost to growers is so low that over time most can expect to collect far more in payouts than they pay in premiums. In other words, most farmers make money by just by buying a crop insurance policy. Farmers Make Money On It Between 2000 and 2014 farmers, in aggregate got back $2.20 in claims for each dollar they paid in premiums, an annual return of 120 percent. In aggregate, farmers enjoyed positive rates of return every year, ranging from 29 percent ($1.29 for every dollar of premium in 2007) to 324 percent ($4.24 for every dollar of premium in the 2012 drought year.) A Gamble That's a Good Bet Making more in payouts than growers pay in premiums is not a sure thing. Not all farmers enjoy a positive rate of return every year, and the rate of return varies dramatically across crops and regions. But the odds are in the growers’ favor, because premiums are so over-subsidized. It amounts to placing a bet in a casino where the size of the house’s money doubles your bet. Back to Basics Federal crop insurance can and should be a fiscally and environmentally responsible safety net that steps in when farmers suffer real financial losses that threaten the viability of their business. But that’s not what the program is today. Congress needs to step up and reform the program so that it works for taxpayers and the environment as well as it does for farmers. Source - ewg.org

10.02.2016

Spain - 50 greenhouses damaged by hail

The hailstorm that took place on Friday last week in some parts of the region of Axarquia has caused damage of varying degrees to fifty greenhouses, some early potato crops and fruits, such as loquat and avocado. At least that is what emerges from the preliminary report carried out by the technicians of Oficina Comarca Agraria (OCA) in Vélez-Málaga, an institution under the Provincial Delegation of Agriculture, Fisheries and Rural Development. In figures Fifty greenhouses have suffered some form of damage from the hailstorm registered last Saturday in the region. The most serious damage affects 15 greenhouses, all in the area of ​​El Morche, in the town of Torrox. The storm also hit the municipality of Lagos. 20% of the harvest of early potato crops in the area where the hailstorm was registered has been damaged, as well as some loquat and avocado plantations. The purpose of this report, once all data is known and a final assessment of the losses is ready, is for it all to be submitted to the Council, the Ministry of Agriculture, Food and Environment and the European Union, in case there is any form of support available for those affected. According to the territorial delegate of Agriculture, Javier Salas, the Andalusian Government does not have any provisions for such cases. The preliminary report prepared by the OCA shows that, of the fifty greenhouses that have been affected by hail, between 10 and 15 have very serious damage. The storm caused the collapse of some of them, destroying all the production they contained. According to Salas, they have also been posted damaged early potato crop in the area, which could lose 20 percent of the harvest and fruit farms loquat and avocado. The delegate of Agriculture, yesterday met with the technicians of the OCA to know the extent of the hailstorm in the region, said the report will not be closed until the declarations of the farmers concerned are known and that is collecting the City of Torrox, a town where the bulk of the losses are concentrated. The hail hit primarily the area of El Morche, where there are about 500 greenhouses, as well as some key locations in the area of Lagos, next to the river Güi. Salas stressed how important it is for producers to be aware of the need to sign an agricultural insurance. "Last October, the Andalusian Government earmarked five million Euro to help growers insure their crops," he said. However, according to the agricultural organization COAG, agricultural insurances prevent greenhouses with old infrastructures, as is the case of those in the area affected by the hailstorm, to receive protection. For this reason, the provincial secretary, Juan Antonio García, has called for governmental institutions to become involved in the rehabilitation of the greenhouses and to request aid for the repair of damaged infrastructure and crops. Although there is still no economic assessment of the damage, the Association of Municipalities of the Axarquía has also applied to the central, regional and provincial governments for aid to the growers affected. The institution will also request an extraordinary Program of Agricultural Development (PFEA) for the affected municipalities, so that they can pay the wages that agricultural workers in the area will lose. Source - freshplaza.com

10.02.2016

USA - Budget Proposal Would Reform Broken Crop Insurance Program

Proposed cuts to crop insurance and other expensive farm subsidy programs in the Obama administration’s 2017 budget would be good for taxpayers and the environment, EWG said in a statement today. The proposed budget would reduce the subsidies provided to farmers for harvest price revenue coverage – known as “Cadillac” coverage – by 10 percentage points. The budget also calls for reforming prevented plantingcrop insurance. The two proposals would save taxpayers an estimated $18 billion over 10 years. “The administration’s proposed reforms are much needed fixes that will save taxpayers billions of dollars and protect and improve the health of our land and water,” said Scott Faber, EWG senior vice president for government affairs. “Reducing premium subsidies for the Cadillac crop insurance plan and adjusting payment rates for prevented planting are common-sense ideas that should earn bipartisan support in Congress.” Last fall Congress attempted to make cuts to the heavily subsidized crop insurance program, but industry supporters blocked the legislation. Contrary to the claims of profitable crop insurance companies, EWG found that these cuts would neither devastate the industry nor hurt farmers. “If Congress can’t make sensible reductions in subsidies to a bloated program like crop insurance, then what can be cut?” asked Faber. “Federal crop insurance is not the safety net it was intended to be, but rather a misguided government handout, and the President’s budget proposal acknowledges that changes need to be made.” Source - ewg.org

09.02.2016

Rwanda - Agricultural policies hurting the poorest of the poor: study

A new study of smallholder farmers in western Rwanda says the country’s agricultural policy has failed the poorest farmers, making them adapt to government policies, such as mono-cropping, or being forced to sell their land. Some 85 per cent of Rwandans work in the agriculture sector. RFI spoke to study author Dr Neil Dawson from the University of East Anglia, to find out how the Rwandan government's much-lauded agricultural policy hurts the poorest. https://soundcloud.com/radiofranceinternationale/rwandas-agricultural-policies-fail-the-poorest-of-the-poor-study Your study, Green Revolution is sub-Saharan Africa: Implications of Imposed Innovation for the Wellbeing of Rural Smallholders focuses on northwestern Rwanda. According to your study the Rwandan policies that are responsible for creating a viable agricultural society are actually bringing Rwandans down regarding socio-economic growth, culture and even well-being. Can you share some of this with us? These policies have major implications for smallholder farmers across Africa. They have the potential to benefit the farmers of course, but the results of our study also show that there’s also the potential for negative implications as well. Really, the clue is in the title. These policies are called Green Revolution policies and they do promote revolution in the way that farmers use their land and the way they produce food. And to do that the strategy involves farming crops of approved seeds of a small number of crops that are economically viable and that there are markets for. They are also using chemical fertilizers to support using the growth of those crops. That involves risk for certain people. Some people are able to improve their income substantially. In our study, a third of the participants were able to do that, and they were primarily the wealthier participants. So changing agricultural practice for the poorer farmers involves taking on particular risks. You may have to take credit to use the fertilizers, and so you have to be confident at the end of the season that you can pay that money back, and also in the meantime that you are able to find enough food to feed your family. With that risk, it means that many farmers, instead of taking part in the scheme, end of having to sell their land, because it doesn’t work for them. One of the issues in your piece is the lack of autonomy by this government because of imposing what crops to grow, or even only one crop to grow that actually leads to less of a feeling of well-being and nutrition problems for smallholder farmers. Certainly in many countries these policies are being promoted and they provide choice to farmers so they can continue their traditional farming methods or they can choose to take on these modern methods as well. But in countries like Rwanda, that change is not only promoted, but imposed on people. So even if you think that growing maize or wheat is not suitable for your soil or your land, or that you have other priorities that you need to feed your family and grow a variety of other crops, you have no choice to do that, so you have to take that risk. The policies are often assessed as being successful, based on a very limited assessment criteria. And what this study shows is that we need to scrutinize these policies much more, and have a look at the potential negative outcomes of them in order to be able to refine the policies, to improve them, and to mitigate against some of these potential costs. Because where the policies are imposed, in a very top-down manner, and farmers haven’t really been consulted in the way they have been designed, that kind of thinking really needs to be brought into improving the way that they run. The newer ways of thinking in terms of smallholder farmers is actually to speak to farmers, to consult with farmers, to find out what their results have been in the past. But the way the Rwandan government is structuring their agricultural policy is basically imposed on these people and you have some have some actual interviews within your article. The policies are commonly assessed using economic data that the government collects, so a lot of the policies across sub-Saharan Africa are shown as being successful on the fact that these limited number of crops they yield in product ion is increasing ten-fold, twenty-fold. And that’s to be expected. Also, they show that perhaps on average the incomes of farmers are increasing. But, what we’ve done is look in a more exploratory way at the kinds of impacts, the broad range of impacts that farmers might suffer so we’ve used the smaller sample size, we had around 200 households that we spoke to and looked at the impact upon them. For a third of these households, they were having benefits and people complied with them, and their incomes were improving substantially. But for many of the other households, and particularly the poorest, their situation was deteriorating. Many of them were losing their land, partly because of these policies. And one of the policies you point out is those who are required to grow tea. In your study, you interviewed people who had a hard time with growing tea because they couldn’t feed themselves.  Yes, certainly, particularly where a cash crop is involved, a non-edible crop such as tea. And that has an even greater risk. Tea takes three-to-four years before you can harvest it and get any income from it. So the scheme involves those households taking on a lot of credits in the meantime. So they provide funds to them to manage the land. By the time they get the first harvest, they’re in considerable debt. And for many, even from the outset, they will choose to sell their land, partly because of the risk. In Rwanda, if the farmer is not successful in managing their land with the new crop, a landlord has been introduced to show that the government has ultimate control over that land and they can choose to allocate that land to another, wealthier farmer instead. And perhaps there will be a risk of not being compensated by the government, so many people choose to sell it before that comes. Certainly in interviews people would say, “The tea is coming, we know it’s coming to our land. We could be evicted at any moment.” So they see it as a considerable risk. In your report, you said that more than half of landless labourers (those who sold their land or the indigenous Twa people) fail to afford health insurance, despite nearly a third of households in that category being paid for by government or donors. So these are people who have fallen by the cracks even by their own government.  Again, that’s another policy where people need to pay to participate in. Universal health insurance is promoted, and government and other donors do pay for some of the poorest. But the year that we did the study the price of the health insurance had tripled, for example, and there were some prohibitive parts to that policy, whereby nobody within a household could be seen by a health professional unless everybody in that household had paid their health insurance. Even if they paid for one person and they were sick. Some of these policies do require quite a lot of investment from people to take part in. Are you saying that basically the governments need to look at all aspects when they are creating this agricultural policy, from, as you said, the poorest of the poor? How would you characterize what needs to be done? Some of these policies can have potential negative impacts. It’s not just like a development policy where you’re providing this mosquito net to people to combat malaria. They get something for free, it doesn’t really impact the way they live their lives. Where policies hold risk is where they can have impacts on the poor. They need to be assessed and scrutinized very carefully so that they can understand why they may not be benefitting, or even negatively impacting people, so they can be refined and improved. That’s normal, no policy is perfect. Really, it’s understanding and putting accountability onto the policies and the people, that the powerful organizations in the case of these agricultural policies who are promoting these as the major strategies to combat hunger and poverty. Source - english.rfi.fr

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