27.04.2015

India - Why crop insurance schemes fail poor farmers when they are needed the most

If the image of a farmer hanging himself from a tree at Jantar Mantar in the Capital haunts India, it is because perhaps for the first time urban India came face to face with self-destruction that so far appeared to be happening thousands of miles away in a Bharat cityslickers found difficult to put a finger on.And if thousands of farmers are killing themselves on their ravaged fields, it's not just because the weather gods have been brutal; it's also because the protection from such climatic flippancy, in terms of crop insurance, has failed the farmer when he needed it the most.The suicides that are being reported from farms across the country clearly indicate that these schemes have not found enough takers. Worse, even in cases where the farmer has signed up for a policy, he may not be eligible to make a claim when he is badly hit on account of loan defaults.Research suggests two major flaws apart from several lesser evils. The two biggest problems with the design of these schemes is that, first, even extremely poor farmers are expected to pay the premium. Second, if the farmer gets trapped in a cycle of debt and defaults on his agricultural loan — to which his crop insurance scheme is linked — his policy becomes inoperative.Thousands of farmers who have opened insurance plans through the Kisan Credit Card (KCC) scheme for instance find they cannot claim insurance because of unpaid dues on their bank loan.Earlier in the week, ET reported that home minister Rajnath Singh is keen to fast-track the much-proposed National Crop Income Insurance scheme, which will merge all farm-related insurance schemes and provide cover for production-related risks and price volatility.As India appears headed for yet another below-par monsoon, the home minister's initiative is doubtless welcome, but if the new schemes have to be effective, the government may need to plug some basic flaws, suggest experts.States with Low Insurance Cover (Source: Crop Insurance officials)- Punjab, Haryana, Madhya Pradesh, Western Uttar Pradesh- Farmers here don't have any knowledge about insurance and remain without cover- Small farmers have no incentive as they have to pay the premium- In many cases farmers have written to banks saying they do not want insurance- The banks have complied with such requests to meet targets although insurance is a compulsory feature of agricultural loan schemesWhat the Experts Say:- The government needs to legislate on the subject, making insurance cover compulsory The government should pay the premium for small farmers- Holding agricultural as well as bank officials accountable for process pertaining to crop insurance should also be a part of the legislationStates with High Levels of Insurance Fraud (Source: Crop Insurance officials)- Maharashtra (Aurangabad and Jalgaon), Gujarat (Saurashtra), Andhra Pradesh (Rayalaseema), Karnataka (Dharwad and Haveri), Tamil Nadu (Nagapattinam and Sivaganga) and Telangana (Mahbubnagar)- Coverage in these regions is high and so is fraudulence- In some districts hundreds of farmers are literally living off fraudulent claimsThe Modus Operandi:- Networks of farmers, bank officials and agriculture department officials run these rackets- Government officials show a higher loss while bank officials help farmers insure the same land repeatedlyFood For ThoughtThat farmers have to pay the premium has met with a backlash in multiple states with several farmer associations even writing to insurance companies to not debit the insurance premium. Given that the banks are under pressure to meet targets for the KCC, they decide to waive off the premium component.According to a senior official with a public sector insurance company, crop insurance schemes were linked to farm loans to provide comprehensive coverage. But since the premium has to be paid by the farmers, they prefer to do away with the insurance component."If you tell the farmer that the crop insurance will stop if you default on loan repayments, how is this helping him during a crisis? This is important, given that the state decided to set up crop insurance schemes not only to help the farmer but also from a food security perspective. Giving aid to small farmers in terms of financial stability is one way of ensuring food security," says the officer.The Big DivideThese schemes have also broadly cleaved India into two parts with one set of states, which are under-penetrated , reporting lack of awareness among farmers about insurance even as multiple frauds are being reported from the second set of states that have better coverage.Talking to various experts who have implemented these schemes on the ground, researchers got a sense of the huge divide.An official who has worked on the field in several north Indian states for over two decades said some states that had an early lead in setting up cooperative banks and other institutions were able to implement crop insurance schemes faster. These states also have had to repeatedly deal with drought, cyclones and other calamities.However, strong "local networks" of farmers, bank officials and agriculture department officials have cornered all these schemes by perpetrating various frauds.The states where crop insurance frauds are being reported continuously include Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. According to this official, farmers in some districts in these states pay off officials handling the yield assessment."In Mehsana in Gujarat, there was a case where the farmers had collected claims which suggested the groundnut yield was 32 quintals per acre. But when the state government did a re-check, they found the actual yield was around 450 quintals," said this official."There are districts in the country where the farmers only harvest insurance claims." The districts that report crop insurance frauds regularly include Dharwad and Haveri in Karnataka, Sivaganga and Nagapattinam in Tamil Nadu, Aurangabad and Jalgaon in Maharashtra, the Saurashtra region of Gujarat and the Rayalaseema region of Andhra Pradesh.Political influence has also played a role in the acceptance of multiple claims over the same plot of land, which is the most common form of fraud. "If you have influence, you can get the bank manager to sanction multiple loans and crop insurance policies over the same plot under the names of various members of the family. This is almost the norm in these districts," says the official.In Maharashtra, officials say, farmers take up insurance only for seasons when they know they would suffer bigger losses. They are able to do so because a high court order has made crop insurance a strictly voluntary component of farm loans. There is also an ample time lag between the last date for acceptance of insurance policy applications and the time for assessing the monsoon pattern.Officials say this affects their business case because the premium collected in the state is extremely low when compared to the claims.Lack of AwarenessEven as the insurance company struggles to deal with fraudulent claims in these states, there exists another set of states where the coverage is poor and the farmers have little awareness. These states are led by Punjab which is yet to sign up for any crop insurance policy. Haryana, western Uttar Pradesh and Madhya Pradesh are some of the other states that have a poor record of getting crop insurance schemes implemented.In Bundelkhand more than 20 farmers said that although they did pay premium for a couple of years, they have never been able to claim insurance money despite suffering losses year after year.An officer with a local bank that implements the KCC scheme said the farmers were not aware of how the insurance schemes worked. Most of them, for instance, did not know that the policy becomes inoperative if they default on payments. "The farmers do not know anything about the guidelines. The government has also not made any effort to make them aware. This is why these schemes are not too effective," the bank manager said.An official with the government insurance company said the average small farmer in the country is estimated to earn around Rs 1,700 per month and a 10% insurance premium — Rs 170 per bi-annual season — is a substantial amount for him.Experts said India needs to legislate on crop insurance. A crop insurance expert suggested five broad points for an effective legislation. Firstly, banks should not be allowed discretionary powers of doing away with crop insurance as a component of farm loans. Secondly, the premium component for small farmers should be paid for by the state.Also, well-to-do farmers should not get any subsidy for premiums as this will also help curtail frauds pertaining to repeat claims on the same plot of land. "But most importantly crop insurance policies should not come to a halt when a farmer defaults on account of the stress on him. When he gets continuous protection from agricultural distress, he will be motivated to continue with farming," said the expert.How Loans Going Bad Also Result in Unpaid Insurance Premiums- Farmer takes a loan to meet cost of cultivation and for working capital; insurance premium is deducted- Drought, flood or, as was seen recently, unseasonal rains damage the crop- The farmer is unable to repay loan; as a result the insurance premiums can't be paid; insurance goes to waste- Farmer takes a loan from a moneylender to pay off previous loans- The moneylender gets aggressive in case of default and threatens him. Many a time, the humiliation causes the farmer to commit suicide.Source - http://economictimes.indiatimes.com/

27.04.2015

Tanzania - Coffee production slipping as temperatures rise

Warmer weather means that Tanzania is producing less coffee as higher temperatures affect yields, hurting both the nation’s producers and coffee drinkers who may pay more per cup, a South African university has found.According to a study conducted by the University of Witwatersrand, researchers have established that higher night-time temperatures are the main factor behind a significant decline in Tanzania’s Arabica coffee yields.Coffee is Tanzania’s largest export crop; on average the country produces around 50,000 metric tons each year of which approximately 70 percent is Arabica. Sales generate over $100 million per year, according to data from Tanzania’s Coffee Board.The East African nation produces less than 1 percent of the world’s Arabic coffee, but the industry employs about 2.4 million people in Tanzania and several millions in neighboring countries.Since 1966, however, coffee production has dropped by 46 percent in Tanzania – a trend research predicts is likely to continue. Over that period, Tanzania’s night-time average temperature has risen by 1.4 degrees Celsius.1 DEGREE RISE, HALF THE COFFEEAccording to the study, published in the journal Agricultural and Forests Meteorology, for each 1-degree Celsius rise in mean minimum (night-time) temperature, farmers in Tanzania are likely to see a loss of approximately 137 kilograms of coffee per hectare. That is almost half the average small producer’s production, which is currently 225 kilograms per hectare.Negotiators at U.N. climate talks are working toward a global agreement to limit global warming to 2 degrees Celsius – but the world is currently on a path toward at least 4 degrees Celsius of warming by the turn of the century, scientists say.“Our forecast indicates that if the trend continues as has been observed during recent decades, then Arabica coffee production in Tanzania will drop to 145 kg per hectare by the year 2060," the University of Witwatersrand study said.Researchers say the threat to Tanzania’s coffee production should spur the country’s authorities to design climate-smart practices that might help cushion farmers from worsening losses.The study, which looked at the impact of climate change on Tanzania’s Arabica coffee production over the past five decades, warned that dwindling coffee yields will affect incomes and jobs not only in Tanzania but in other coffee producing countries such as Kenya, Ethiopia, Brazil, Colombia and Costa Rica, which could also see temperature rises.In Tanzania, Arabica coffee is cultivated in the southern and northern highlands along the slopes of Mount Kilimanjaro and in the Mbeya region, where the majority of small producers are based.Alessandro Craparo, the study’s author, told that if temperature increases follow the trend of the past few decades, coffee yields in Tanzania’s highlands will likely to drop to around 200 kg per hectare by the year 2030.“Coffee yields have declined to their lowest point in years, with many farmers in Tanzania giving up on coffee completely,” Craparo said.Temperature changes are unlikely to affect other coffee species such as Robusta, which is grown at lower altitude and is more climate-resilient than Arabica, he said.Godsteven Maro, a soil scientist with the Tanzania Coffee Research Institute (TACRI), said falling coffee yields in Tanzania may also be related to problems such as aging coffee trees, something the Witwatersrand study acknowledges.“To attribute the trend solely to the change in minimum temperature carries some subjectivity,” he told.JOBS RISKAccording to the study, although governments in coffee producing countries have invested heavily in the coffee sector, most have not put in place strategies to adapt to climate change, putting at risk the lucrative industry and the jobs of millions of small-scale farmers who depend on coffee.James Teri, the head of TACRI, said Tanzania’s government has taken some measure to deal with the changing conditions, including advising farmer to relocate to higher altitudes in order to sustain coffee quality and quantity.“We have also introduced new climate-tolerant coffee varieties which have been introduced to farmers in various coffee growing areas,” he said.Haji Semboja, an economics professor from the University of Dar es Salaam, warned that if adaptation to changing conditions is not effective, “the effects to livelihoods and jobs will be huge.”Source - http://uk.reuters.com/

27.04.2015

EU apricot estimate down 4% on 2014

The European apricot harvest is expected to be 4% lower than last year and the 2009/2013 average, reaching 510,000 tons. Figures on the 2015 season were released 23th April.ItalyItaly’s production is also expected to decrease, to 197,000 tons, down 7% compared to 2014, and -12% compared to the average.SpainSpain expects an almost 100,000 ton harvest, 12% higher than last year and 21% above the average. Conditions were relatively favourable in all zones.FranceFrance expects the apricot harvest to reach 166,000 tons, 4% less than last year and 2% higher than the 2008/2012 average. Lack of cold over the winter and frequent rainfall during flowering led to low fruit set for many varieties on many plots. These forecasts are probably quite high and could decrease over the next few weeks.GreeceApricot production in Greece is expected to be down 13% on last year and 20% compared to the five year average. Greece is yet again victim to climate conditions in 2015, with 46,000 tons of production expected. Production should reach a good level in Peloponnese where the harvest should begin in the 2nd ten days of May. Meanwhile frost in Macedonia destroyed 80% of production in the main areas.Source - http://www.freshplaza.com/

27.04.2015

India - Himachal releases Rupees 9.14 crore for crop insurance

With a view to compensate a huge loss to the farmers and horticulturalists’ of the state due to harsh weather conditions, rain and heavy snow, the state government has released the largest ever relief of Rupees 9.14 crore under the Disaster Relief Fund to the affected.A state government spokesman said that it had launched Weather Based Crop Insurance Scheme (WBCIS) on pilot basis to safeguard interest of apple growers, as horticulture is the major revenue-earning avenue for them. The official also informed that it has extended an insurance scheme to all blocks of the state for current financial year 2015-16.During rabi season 2014-15, WBCIS has been extended for apple crop from 17 to 35 blocks and for mango crop to 42 blocks. The additional fruit crop namely citrus (kinnow) has been covered in 14 blocks, plum in 12 blocks and peach in four development blocks.During last two years 1,06,113 farmers were covered under WBCIS for which the state government has borne 25% of premium share amounting to Rupees 12.33 crore the insurance companies to compensate the losses.During 2013-14, as many as 64782 farmers were covered under WBCIS for apple crop who had insured their 1,26,14,524 trees for which the state government had borne 25% premium share of Rupees 6.17 crore subsidy with a claim of Rupees 8.14 crore.Source - http://www.himvani.com/

27.04.2015

USA - Report failed crop acreage prior to destruction

With spring planting quickly approaching, the Morrow County Farm Service Agency (FSA) encourages farmers to report failed crop acreage that will not be brought to harvest to their FSA office. Failed acreage must be reported to FSA before destroying and replanting to allow time for a field check.“It is very important that farmers report failed acreage that will not be brought to harvest to the FSA office prior to destruction,” said Angie Thorpe Morrow County Executive Director. “This simple act of insuring that failed acres are documented could be the determining factor in whether or not a farmer is eligible for future crop disaster program payments.”Form CCC-576, Notice of Loss, is used to report failed acreage and may be completed by any producer with an interest in the crop. For crop losses covered by the Non-insured Assistance Program (NAP), producers must contact their local FSA office within 15 days of the occurrence of the disaster or when losses become apparent. Producers with crop insurance should also contact their local agent when losses occur and before destroying the crop.Producers are encouraged to keep good production records on acreage with a low crop yield to document crop losses. To be eligible for crop disaster programs in the future, production records may help support crop loss claims.Source - http://www.morrowcountysentinel.com/

27.04.2015

Philippines - Davao City farmers affected by dry spell to receive financial aid; crop losses now at P2B

Mayor Rodrigo R. Duterte said he was open to giving financial assistance to farmers affected by the El Nino phenomenon in the farming districts of the city after the City Agriculturist’s Office last week estimated crop losses of at least P2 billion.This, after the Department of Agriculture said in a statement that it was already too late for cloudseeding operations as the damage to crops have already been too severe and unrecoverable.Duterte said the farmers were already being bled dry by available measures to respond to drought, citing the need to pay for services of the National Irrigation Administration.Michael Alexis Nota, Bureau of Soils and Water Management project development officer, said in a statement called severe the damage of the phenomenon to crops, especially corn.Duterte said he hoped the city could also access some of its natural sources of water, especially in the uplands, to help mitigate the dry spell affecting the farmers.DA regional director Remelyn Recoter asked farmers to report their crop losses to their municipal agriculturists, who will in turn coordinate the information to the concerned DA regional office for the replacement of seeds and other forms of assistance.According to the DA release, Davao del Norte could still benefit from cloudseeding, with at least P3 million allocated for cloudseeding operations in the banana-producing province.The DA’s high value crop development program places Davao del Norte’s banana industry to be at 23,772 hectares.According to the DA, the province has also counterparted P10 million for the cloudseeding operations.“We will not conduct cloud seeding in Davao City because the damage is already big and it can’t be recovered. Davao Oriental and Davao del Sur have a minimal damage and it does not require cloud seeding intervention,” Nota said.Dr. Rafael Mercado, assistant regional director for research and regulatory, said the agency has prepared 6,923 bags corn seeds as buffer stock while the rice program has prepared 4,200 bags certified rice seeds, 1,130 bags registered rice seeds , 125 units Pump Irrigation System and 5 units Pump Irrigation System (Open Source for rehabilitation).For the high value crops program, the DA has prepared 575 drums, 66 bags mungbean, one unit spring development and one unit farm reservoir.In an earlier report, City Agriculturist Rocelio Tabay said the dry spell threatens to affect 11,151 farmers working in 7,075.15 hectares of farmlands in Paquibato, Marilog, Toril, Tugbok and Baguio Districts.Source - http://www.mindanews.com/

27.04.2015

India - Maharashtra ropes in Swiss Re to streamline crop insurance schemes

Amid a rising in suicides by farmers and delays in settlement of insurance claims, the government in Maharashtra has brought in a reinsurance company, Swiss Re, to improve crop insurance schemes.The government proposes village-level surveys for crop loss instead of the circle, through satellite-based imaging.Chief Minister Devendra Fadnavis has said Swiss Re will implement a pilot project covering five crops, including jowar and cotton. The location will be decided soon. "It will be completely a satellite-based survey, which will zero in to the individual fields," he said.Swiss Re director G Satish Raju, who was present at the CM's briefing, said they'd bring in some more insurance companies in the pilot project. Efforts will be made to hasten the processing of farmer claims. The aim, he said, would be subsequently plan to cover a large number of villages, so that the state can become a role model for others.A state government official said natural calamities had added to agrarian distress. ''A robust crop insurance would provide an instrument to face this situation. No product (in crop insurance) which satisfies farmer aspirations really exists. Swiss Re has responded to the government's invitation and we are hopeful,'' he said.Fadnavis also said the government was conducting "vulnerability mapping" of farmers in Yavatmal and Osmanabad districts, with the aim to curb a spate of reported suicides.Source - http://www.business-standard.com/

24.04.2015

Canada - Looking at the new crop insurance initiative from AFSC

Alberta farmers: are your dreams of growing coriander stymied by the perils of farming without insurance coverage? Would you try your luck with fields of clover if only there was a backstop in case of a drought or grasshopper invasion? Then the new crop insurance initiative (NCII) from Alberta’s Agricultural Financial Services Corporation (AFSC) is for you.In all seriousness, coriander production probably wasn’t the driving force behind this new program, but it will be eligible for coverage along with soybeans, dryland hemp seed, caraway, borage and several varieties of perennial seed, including brome grasses, wheat grass and common alfalfa and timothy.Many of the crops covered under NCII are grown on small acreage and have access to straight hail insurance, but not multi-peril coverage. This program is AFSC’s answer to farmers who want to try growing new crops but also mitigate the risk involved.Because AFSC lacks data yield data on these crops, coverage will be based on an average cost of production (includes: seed, seed treatment, herbicide, fertilizer, insecticide, fungicide and fuel) combined with a land opportunity cost.Ken Handford, product development analyst with AFSC, describes the land opportunity cost as “analogous to a cash rent.”“We look at the value of the land if [producers] were using it for another commodity,” explained Handford. The land cost is based on provincial data, not necessarily what you’re paying for cash rent in a given year. Most crops covered by NCII will also be eligible for the hail endorsement which is a significantly cheaper product than straight hail.Where applicable, dryland and irrigated premiums and coverage will be determined separately to account for different management costs. For example, dryland soybeans will be eligible for up to $225 per acre with a premium of $8.89 and irrigated soybeans will be covered for $310 per acre at a cost of $5.36 per acre.For producers to be eligible for NCII they need to have an active crop insurance contract on annual crops. NCII payouts will be based on the average loss producers have on all other annual crops covered by traditional insurance. So if you grow wheat, barley, canola and soybeans and average 30 per cent loss on your wheat, barley and canola, you’re eligible for $67.50 per acre on your soybeans (30 per cent of $225).Handford noted that coverage areas are limited for some crops. For example, dryland soybeans are currently eligible for coverage in Township 50 and south (west of the fourth meridian only) and in the southern Peace region in risk areas 17, 18, and 19. Irrigated soybeans are covered in risk areas 2, 3, 4, 5 and 9.Farmers must elect coverage under NCII by the usual AFSC deadline of April 30. Handford encouraged producers to speak to their local branch office about the options and if the crop you want to grow isn’t on the list, don’t assume the door is closed.“We will definitely take a good hard look at other commodities that producers are growing and if it makes sense to offer coverage then we will,” said Handford. “From AFSCS’s point of view it gives us an avenue to get data on crops that we don’t have a lot of information on.”As a producer accumulates farm data on a particular crop she will eventually be able to transition from provincial numbers to her individual records. If AFSC gathers enough information from across the risk areas, they may be able to move a crop from NCII to traditional crop insurance.“Irrigated hemp seed is one of the commodities that we are bringing into regular production insurance in 2015,” said Handford, explaining that some crops may never be grown widely enough to be given multi-peril insurance, while others may move into the mainstream coverage quite rapidly.It is with some personal interest that I explored this new program. We grow intermediate wheatgrass for seed and have not been eligible for crop insurance. I’m checking the details with my local branch.John Kowalchuk farms near Rumsey, Alta. and plans to plant his first crop of soybeans in 2015. He said he would have grown soybeans regardless of coverage, but appreciates the peace of mind that comes with the program.“I think the biggest thing for me is shared risk,” said Kowalchuk. “In the past the farmer took all the risk to test the viability of crops in new areas.”Risk and reward: farmers need a balance of each. While insurance doesn’t add any weight to the reward side, it can reduce the burden on the risk side of the beam. Good on farmers and AFSC for working towards an equilibrium fitting of 21st century farming practices.Source - http://www.grainews.ca/

24.04.2015

USA - ADM could use drones from 2016 to get crop insurance claims data

Archer Daniels Midland Co. plans to use drones to gather data on crop insurance claims as soon as the summer of 2016, its risk services head told on Wednesday.ADM's Crop Risk Services Inc won clearance to use drones earlier this month from the Federal Aviation Administration, which currently bans their commercial use, and will begin testing the technology in the U.S. Midwest this year.The unmanned aircraft can gather data about crop damage from hail, wind, flooding and drought, and automatically upload the information to the company's claims software, Greg Mills, president of ADM CRS said.The company is one of a small number of businesses with agriculture connections, including Monsanto Co.'s Climate Corp. and Trimble Navigation Ltd., that have received exemptions to the FAA's ban on commercial use.The FAA proposed rules on commercial drones in February that limit their use, but final regulations may not be in place for two years.Mr. Mills said cost savings from using the drones were likely to be "significant" for ADM CRS, but declined to give any detailed estimate."I think it will create some general efficiencies and some specific efficiencies for claims," Mr. Mills told, adding the company already owns two drones and has contracted for another two.The FAA exemption allows ADM CRS to use only Phantom 2 Vision quadcopters made by Shenzhen, China-based Da-Jiang Innovations, which according to the company's website, cost about $900 apiece. ADM CRS would need further FAA approval to fly different aircraft.Drones can be deployed to find and assess multiple areas of crop damage over a broad area. Currently, claims adjusters often have to physically walk out into a field to measure the extent of crop damage, Mr. Mills said."The goal is to test the savings to the business in the Midwest and then potentially release nodes of equipment by next spring to be used for the summer of 2016 for use in a larger area," he said.The FAA exemption allows ADM CRS to fly its drones only within 400 feet of the ground and within sight of the operator. Pilots must also have a farmer's permission to fly over their land.Crop insurance is used by farmers to protect their income from losses caused by natural disasters. About 90% of planted farmland is covered by insurance every year.Source - http://www.businessinsurance.com/

24.04.2015

UK - Turnip yellows virus hits 80% of OSR crop in some regions

Oilseed rape crops in parts of England are seeing rates of turnip yellows virus (TuYV) infection as high as 80% this season, according to early results from a nationwide study.The virus is spread by aphids and is estimated to cost the industry £100m/year, with up to 26% loss in yield.So far the survey has found that the highest rate of TuYV infection in OSR crops is in the south of England.John Watson of Warwick University is leading the research for OSR breeder Limagrain UK which, when completed in late May, will give a detailed picture of TuVY hotspots across the country.“Overall results so far are showing generally high levels of infection across the three regions that have been tested as part of a project led by Dr Watson,” said Vasilis Gegas, senior oilseed rape breeder with Limagrain.“Results from the south of England have detected incidences as high as 80%, in Somerset incidences of up to 74% and in Yorkshire incidences of up to 72%, whereas in Cardiganshire we found incidences of up to 46%,” he added.Dr Watson blames the large numbers of aphids flying last autumn and a lack of neonicotinoid seed treatments for the high levels of cases this year.Early signs of TuYV are purpling of the leaves and later symptoms of interveinal yellowing and reddening of leaf margins are not usually shown before stem extension and can easily be confused with other nutritional deficiencies.Source - http://www.fwi.co.uk/

24.04.2015

India - Banks urge farmers to sow less water-dependent crops

Public sector banks have directed their financial literacy and credit counselling centres (FLCCs) in rural areas to reach out to farmers, and provide them all kinds of support including training and counseling. Besides, all banks have been instructed to provide them credit according to their requirements.Banks, meanwhile, have asked these centres to guide and urge farmers to sow crops, that require less care and irrigation, to control damages in case of a deficient monsoon. The finance ministry is keeping a close watch on the situation and is likely to seek reports from banks on the issue.While the India Meteorological Department (IMD) on Wednesday predicted sub-normal rainfall this year, a farmer from Rajasthan committed suicide at an Aam Aadmi Party rally, raising fresh controversies.TM Bhasin, chairman, Indian Banks' Association, said all banks have been instructed to carry on normal lending pattern to farmers, even if they are unable to repay their dues for the Rabi crops."Banks have been instructed to keep providing credit to farmers irrespective of whether or not they are able to repay their existing dues. Besides, they have been told not to coax them with any repayment of dues at this point," Bhasin told HT.There are about 2,000 such literacy centres across the country.The agriculture lending target for 2015-16 is Rs 8.5 lakh crore.In 2012, the Reserve Bank of India asked public sector banks to set up FLCCs directly. These centres were earlier run by trusts and societies formed for the purpose, but they functioned under the umbrella of their sponsor banks.Recently, Prime Minister Narendra Modi announced higher compensations to farmers for crop damages, and said public sector banks and insurance companies have already been directed to provide them the required assistance.Last year, too, India received sub-normal rains. "The other point of worry may be the water storage position, which during the current year is less than the storage position of last year," said Soumya Kanti Ghosh, chief economic adviser, State Bank of India.Source - http://www.hindustantimes.com/

24.04.2015

India - FMC-SEBI merger to boost farm insurances

The proposed merger of commodity market regulator Forward Markets Commission (FMC) with capital markets regulator Securities and Exchange Board of India (SEBI) will boost agricultural insurances for farmers that can help them adapt to climate change, an expert said here on Thursday."Many of the developed nations are thinking of these types of financial products (rainfall insurance, crop insurance etc) as an adaptation for climate change," Nilanjan Ghosh, senior fellow, Observer Research Foundation (ORF), said here."In India, when FMC moves under SEBI the advantage is that the index based products as well as options which are non deliverables are going to be allowed. Eventually these types of insurance products are going to be viable for sustainable development."He was speaking at a seminar on 'Supporting climate resilient development in India' organised by the French embassy in association with the Alliance Francaise du Bengale and the ORF.Ghosh said the merger will address the concerns of insurance companies for floating products for farmers since the commodities market will be under an autonomous regulator."The worry of insurance companies floating certain products with the farmers precisely because they didn't have any hedging mechanism will ease since they will be able to participate in the commodities exchanges," he said."In the previous regime they were not allowed to participate in commodities markets for risk management precisely the commodities market didn't have an autonomous regulator. Now its going to be under an autonomous regulator. Private players will be enticed to introduce financial products for farmers," he added.However, Anurag Danda, head of climate change adaptation of WWF-India, stressed the need for sufficient data for weather-based insurances and derivatives to work."Monitoring stations in gram panchayats, like those in Karnataka, need to be set up so that data on rainfall and other weather conditions can be generated," Danda said.Source - http://www.ianslive.in/

24.04.2015

USA - Fruit growers try tricking mother nature to prevent crop damage

Fruit growers in northern Michigan grow apples, peaches and wine grapes. But the big crop here is tart cherries.More than half of Ken Engle's 140-acre farm is planted with what he calls sour cherries.These trees are the most vulnerable just before their white blossoms unfold at the so-called water bud stage. And in orchard country, extreme heat and cold can mean mass crop damage. "And what causes the damage is, on a cold night the moisture that's in the blossom will actually freeze," Engle says. "It will break the cell wall and the blossom is killed."Past losses now have researchers looking at new ways to use old technologies to save those crops.In 2002, a cold snap hit when trees were in that stage and destroyed almost the entire tart cherry crop here. Cherries — and most other fruits — were wiped out again in 2012. That year, 80-degree days in March that caused blossoms to come out more than a month early were followed by cold temperatures."Everything was frozen here," Engle says, adding, "We had trees literally with less fruit on them than what we normally leave after we've shaken them."And while 2010 was a very hot year, it also set records for early fruit blossoms. Indeed, on average, fruit trees here now bloom about a week earlier than they did 40 years ago.There isn't much a grower can do to protect a budding tree from cold and frost.Engle does have a wind machine mounted in one orchard. It looks like a small windmill and can mix in warmer air from above the tree tops with the colder air that settles among the trees. But at best, it might raise the temperature a degree or two.However, this spring, Engle is experimenting with an old technology: sprinklers to keep his trees wet. That cools down the tree to trick it into thinking winter is not quite over – even if the weather turns unseasonably warm too early, as it did in 2012.The idea isn't new. In the 1970s, an experiment in Utah used sprinklers to delay fruit blossoms for three weeks. Jim Flore, a researcher at Michigan State University, says those sprinklers just ran constantly."Five minutes on, five minutes off. Wet them, let them dry out. And as a consequence, they used about 36 inches of water," he says.That's about 1 million gallons per acre. That much water is expensive and causes other problems, like disease. So nobody thought much more about cooling down trees until the freezing disaster of 2012.That got Flore running experiments that he thinks show a possible new path forward.He says technology makes this idea viable. Instead of garden sprinklers, he's using misters, like you see spraying produce at the grocery store.And his team has developed software that calculates exactly when water is needed."Now based on that, we can turn this system on and off, which saves a lot of water," he says.Flore says he's used less than a third of the water consumed in the Utah experiment and pushed back bloom time 10 days in some cases.The question is whether growers can afford to install a bunch of hoses and sprayers in their orchards to fight off erratic spring weather.Matt Grieshop, also at Michigan State, says if it can prevent some frost damage, that could be a game changer."If you can save one crop of apples, the system has paid for itself," he says.And Greishop says the cooling could be useful in warm climates, too, where frost isn't a problem, but excess heat is.For instance, out West, in the height of summer, the sprayers could cool trees when fruit is susceptible to sunburn.In Michigan the stakes are higher, where it might save growers from a total loss.Source - http://interlochenpublicradio.org/

23.04.2015

Moldova - Frosts and hail put growers on guard

This Monday, several Moldovan regions were hit by low temperatures, heavy rain and hail. In Calarasi, even light snows were registered.Five districts in the centre of the country were affected by frost. In some areas, the air temperature dropped to minus 3 degrees Celsius.These were the minimum temperatures registered in some areas:- Stefan Voda - 3 °C- Tiraspol -2 °C- Chisinau -1 °C- Calarasi -1 °C- Ungheni -1 °CAccording to local producers, if such bad weather conditions persist, the harvest for some fruits and vegetables could be compromised.Meteorologists said the weather would be determined by the influence of an area of low air pressure, which will result in cloudy skies and further rainfall.Source - http://www.freshplaza.com/

23.04.2015

India - Gale and downpour destroys 100,000 banana plants

Gale coupled with downpour in the early hours of Tuesday destroyed over a lakh banana saplings on over 5,000 acre in Nanguneri taluk, much to the agony of farmers.As a few parts of the district are witnessing sporadic rain over the past few days, temperature usually hovering beyond 40 degree Celsius in the district during this period is very much under control in these ‘blessed areas.’However, the gale destroyed the saplings in Nanguneri taluk that recorded 178 mm rainfall.“The saplings, all aged between 8 and 11 months, cultivated in Nanguneri, Marukaalkurichi, Thennimalai, Singaneri, Kaaduvetti, Devanallur Idaiyankulam, Kokkaneri, Kaarankaadu and Pattapillai, were damaged. Since the farmers have lost the crop that was almost ready for harvest, the State government should give a compensation of at least Rs.100 per sapling,” said S.V. Krishnan, former Nanguneri MLA.The gale and rain also damaged electric poles along the 16-feet-wide road leading from Perumal Nagar bus-stop on Nanguneri – Thisaiyanvilai stretch to Kaarankaadu, where lightning killed five cows in the wee hours of Tuesday.Source - http://www.freshplaza.com/

23.04.2015

USA - State hail insurance offers opportunity for farmers to manage hail risk

Spring is a busy time of year for Montana farmers, with field preparation, planting decisions and seeding. It is also a time to start thinking about protecting crops from hail damage until fall harvest. The Montana State Hail Insurance program has provided hail insurance coverage to help Montana farmers manage hail risk for 98 years.For the 2015 season, producers can insure crops against hail damage at the maximum coverage rate of $75 per acre for dryland and $114 for irrigated land. Rates charged are a percentage of the insured amount and vary by county depending on the hail loss history of an area. A detailed list of rates by county and crop can be found on the program’s website.Applicants can now conveniently manage policy payments securely with e-checks or credit/debit cards. Traditional payment methods are still available. To purchase state hail coverage, producers should contact the State Hail Insurance program office by mail, fax, or phone. State hail insurance coverage forms are still available at Montana State University Extension, Conservation District, and county revenue offices.Source - http://www.ktvh.com/