Agroinsurance

USA - Water forecast predicts low supplies for California

Western states should expect normal water supplies this season, according to a report from the USDA's National Water and Climate Center, except for California and the Southwest. In the first water forecast of 2015, the NWCC notes that snowpack and streamflow forecasts are close to normal throughout the West, but that California will once again remain unusually dry.Snowmelt accounts for a significant amount of the water supply in most western states, and one of the lasting effects of the California drought was that conditions started off dry in October of last year, when the snow accumulation season begins. While snowpack conditions in California along the Sierras are below normal for this time of year, they are not as low as they were during this time last year. But the state's major reservoirs remain at below average capacity.“This is just the first forecast of the season; everything can change,” said NWCC hydrologist, Cara McCarthy. “A weak El Nino is forecast for this year, which might play a part in coming months.” El Nino tends to bring more water to the Southwest than to the Pacific Northwest, so there is the possibility that Southwestern states could receive more water than the first forecast of the season predicted.Source - http://www.freshplaza.com

India - Untimely rains to hit onion produc

Unseasonal rains across the state have damaged 10-20% of onion, cumin seeds and cotton crops. According to experts, this will affect quality of the crops too.An official of the state agriculture department said, "Onion crops, for instance, will be hit by the increase in moisture in the atmosphere. The untimely rains will also increase moisture content in onions, making the uppermost layer dark." Gujarat had produced 7.04 lakh metric tonnes of onion in 2014.Bhikha Jajadiya of Agricultural Produce Market Committee in Bhavnagar said, "The rains will bring down prices of inferior quality crops by up to 15% in the wholesale market. However, for the good quality produce, the prices will go up." Bhavnagar APMC is the biggest market for onion trading. Jajadiya added that the downpour will hit cumin crops too, especially in Saurashtra where early sowing had taken place.Source - http://www.freshplaza.com

Ukraine - Canada to provide over 50 mln USD for development of agriculture

Canada plans to provide Ukraine additional 52 mln USD for development of grain and dairy sectors of the agro-industrial complex, declared Ed Fast, Minister of International Trade of Canada, on January 26."Today, I announced that Canada will provide additional 52 million dollars to the technical needs of Ukraine for different projects. This money must help to strengthen the economic position of Ukraine", - declared the Minister.As a reminder, according to Petro Poroshenko, President of Ukraine, the free trade zone between Ukraine and Canada should start working until the end of 2015.Source - http://www.apk-inform.com

Bangladesh - Farmers face losses in blockade

Farmers in BograAbout 40% of the vegetables produced round the year in the country, now lie rotting in the field. This is the time to harvest the new potatoes. The farmers have even begun digging up the potatoes from the ground. About 20 to 30% of the potatoes have been harvested. But due to the fear of petrol bomb attacks, about two million tonnes of potatoes have not been able to reach the consumers. These are rotting in the markets and the fields.Due to lack of transport, supply of rice has fallen by 60% too. About 80% of the rice mills have had to close down.Having harvested the aman rice crop, the farmers had cultivated seasonal vegetables and potatoes. They were now preparing the land for the boro rice crop. They invest their earnings from their produce to plant the boro crop. The floods have been a curse for their Aman crop, but they had hoped to make up for the losses though their vegetables. But with the blockade on for a non-stop 22 days, that hardly seems feasible anymore.About 60 to 70 percent of the vegetables produced around the year in the country, are grown in winter. About 40% of this is harvested in January and February. Due to the political turmoil, the farmers have almost stopped gathering vegetables from the field. Where the vegetables are not being sold, they are rotting. Tomatoes, brinjal, beans and cauliflower are being sold cheaply.With good prices last year, this year there has been a good harvest of potatoes. New potatoes are just emerging in the northern region of the country, but these are hardly reaching the consumers. Last year these sold at Tk 400 to Tk 500 per maund. This year these are not selling at even Tk 200 per maund.The sale of aman rice has also almost come to halt. According to the 'Grain and Feed Update' published by the US government agricultural department USDA on 6 January, Bangladesh's aman production will fall mid-year due to floods. Before they can overcome the floods, the farmers are having to face the blockade.Mahbub Hossain, former director general of Bangladesh Institute of Development Studies (BIDS) and economist, said, "The on-going blockade will hit the farmers hard. January-February is the best time for the aman rice, vegetables and potato sales. Unless they can sell their produce, the farmers won't be able to invest in the boro rice crop. This may bring boro production down. It will be hard to hold on to the food autarky that the country has achieved."Prices of un-husked rice (dhan) normally increase in January. When the boro harvest begins in March April, prices go down. But this year the price of rice and un-husked rice have already fallen in January. Un-husked rice is selling for Tk 650 to Tk 850 per maund. But the price of rice at the consumer level hasn't gone down.Mahbub Hossain says, businessmen have demanded that the government pay compensation for the losses they have faced during the blockade. But the farmers have no such strong organisation and cannot make such demands. If the government can pay the farmers compensation for natural disasters, then they should pay them compensation for the losses made during political turmoil too.Source - http://en.prothom-alo.com

India - Post India Insurance may sell products of other insurers

The Department of Post is mulling selling insurance products of other companies, especially in rural areas, besides selling its own policies.In a meeting chaired by Prime Minister Narendra Modi last month on the findings of a Task Force on India Post, DoP conveyed its intentions to enter the insurance space targeting rural India, sources said.The proposed Post India Insurance will start with an initial capital of Rs 100 crore that will be made available by DoP, they added."DoP debated that the insurance penetration in rural India is minimal and a new vehicle needed. Besides, the department has decades of experience in this field and it can seamlessly adapt to new operations," a source said.Besides selling its own insurance products, it can also undertake the business of selling policies of other insurance players as commercial agents, sources said.DoP already offers insurance policy (Postal Life Insurance) to government and semi-government employees.According to the Task Force, in rural areas there is a need for various types of insurances like crop insurance, accident cover, insurance of agricultural equipment, etc."Since India Post is operating in the insurance sector for well over a century, there is no reason why it should not be allowed to extend the spectrum of its insurance services to these areas through agency agreements or a broker's licence," it added.At present, DoP offers personal life and endowment insurance policies under both, Postal Life Insurance (PLI) and Rural Post Life Insurance (RPLI).It recommended that "...The life insurance activities for the DoP should be hived off and converted into an independent corporate entity, which may be designated as India Insurance or given some other suitable name."Modi had set up the Task Force in 2014 to study leveraging the postal network in India and to enhance the role of India Post in financial inclusion, among other services like delivery of goods for e-commerce firms.The report suggested that the government should set up a holding company under the Department of Posts for immediate roll out of banking, insurance and e-commerce services by the 1.55 lakh strong postal network.The panel also suggested establishing Post Bank of India as a separate entity with a branch in each district in the first three years with initial capital of Rs 500 crore to be funded by the government.Source - http://www.dnaindia.com

Lebanon - Storm damage to bananas, citrus and greenhouses

A recent storm has caused damages to many sectors in Lebanon, but the agricultural sector is significantly hit, with damage to banana groves, citrus and greenhouses along stretches from Qasimiyah coast and as far north as Naqoura in the south.Hassan Dhena, member of the Southern Farmers Association, said that "the storm, which coincided with a wave of frost, has caused heavy losses of crops in the coast of Tyre and the highlands, where greenhouses and agricultural tunnels growing tomatoes, aubergines and courgettes, as well as banana groves, citrus and other crops were the most affected."Growers have appealed to the Ministry of Agriculture for relief, "especially in light of the crisis caused by the very high production and exporting costs compared to neighbouring countries."Source - http://www.freshplaza.com

OECD to support Ukraine in the agricultural sector

The Organisation for Economic Co-operation and Development (OECD) is considering the program of interaction and the plan of actions aimed at supporting the program of reforms in Ukraine, including the agricultural sector, declared the Presidential Administration of Ukraine.According to the announcement, the OECD is also considering a number of projects in the Ukrainian engineering and energy sectors, as well as projects to support small and medium-scale businesses.José Ángel Gurría, OECD Secretary-General, said that the organization was willing to enhance the programs of cooperation with Ukraine. According to him, Estonia, Lithuania, the USA, Slovakia, Sweden and the EU in general have already confirmed their readiness to become donors.Also, he confirmed that the decision of the OECD of March 12, 2014, on the suspension of the process of Russia's accession to the OECD and the intensification of cooperation with Ukraine remained in force.Source - http://www.agroinsurance.com

Scotland - Emergency farm loan applications being accepted in Edinburg

Cameron, Hidalgo, Starr, Willacy and Zapata counties are five of 156 counties in Texas recently named by Secretary of Agriculture Thomas Vilsack as eligible for loans to cover part of actual production and physical losses resulting from the drought.Farm Loan Manager Arnulfo E. Lerma said farmers may be eligible for loans of up to 100 percent of their actual losses or the operating loan needed to continue the agricultural business, whichever is less. For farmers unable to obtain credit from private commercial lenders, the interest rate is 3.625 percent.“As a general rule, a farmer must have suffered at least a 30 percent loss of crop production or suffered any physical loss to be eligible for an FSA emergency loan under this disaster designation,” Lerma said.Producers participating in the Federal Crop Insurance program will have to consider proceeds from those programs in determining their production loss. Additionally, any insurance proceeds received by producers as a result of the physical loss will have to be considered in determining their total loss.Applications for loans under this emergency designation will be accepted until Sept. 8, but farmers should apply as soon as possible, Lerma said.“Delays in applying could create backlogs in processing, with possible delays into the new farming season,” Lerma said.FSA is a credit agency of the U.S. Department of Agriculture. It is authorized to provide disaster emergency loans to recognized farmers who work at and rely on farming for a substantial part of their living. Eligibility is extended to individual farmers who meet U.S. citizenship requirements and to farming partnerships, corporations, or cooperatives in which U.S. citizenship requirements are met by individuals holding a majority interest.Source - http://www.themonitor.com

Africa - Drought Triggers Insurance Payout in Sahel Ahead of Humanitarian Aid

ARC Insurance Company Limited (ARC Ltd) is to pay $25 million in drought insurance claims to three countries in the Sahel this month.Mauritania, Niger and Senegal, which paid a combined premium of US $8 million, will use the payout to mobilise early interventions in response to drought based on pre-approved contingency plans.The catastrophe insurance model is tailored to African climate issues, developed by the African Risk Capacity (ARC), a Specialised Agency of the African Union, and its affiliated mutual insurance company, ARC Ltd.The inaugural pool was set up in 2014 to help Member States build resilience to extreme weather events and protect food insecure populations. Coverage for tropical cyclones and floods will be available in 2016.“This African-owned approach is addressing specific country-level climate change concerns, decreasing reliance on external aid, and promoting a sustainable solution to one of our continent’s biggest challenges,” said Dr Ngozi Okonjo-Iweala, Nigeria’s Minister of Finance and Chair of ARC’s Governing Board.By purchasing parametric drought insurance policies last year, Kenya, Mauritania, Niger and Senegal became the first African countries to embrace this new model of innovative funding, taking a major step in transforming the disaster response paradigm on the continentRobert Piper, the UN regional humanitarian coordinator for the Sahel, said: “These first payouts by ARC represent a milestone in government leadership and financial innovation for emergency response across the Sahel.”ARC’s information and action is spearheading what will be a substantial global emergency response over the coming months to mitigate what could otherwise become a major food security crisis.“For African governments, extreme weather events require significant response capacities and are often associated with large fiscal costs. With the payment of US $16.5 million coming into the Treasury, we are fully convinced that it is possible to move from managing crises to managing risks,” said Amadou Ba, Minister of Economy and Finance for Senegal.Payouts are made based on calculations using ARC’s in-house drought monitoring and loss calculation software, Africa RiskView. ARC and its Member States work in partnership to develop country-level contingency plans based on existing and scalable government programs.Before the payouts are made, governments must submit a Final Implementation Plan, which is certified by the ARC Governing Board’s Peer Review Mechanism.Dr Richard Wilcox, Founding Director General of ARC Agency said: “This is a transformative moment in African food security demonstrating the potential for cost effective disaster financing. ARC has the potential to transform disaster risk management on the continent.“With the ability to scale to a multi-billion dollar portfolio, ARC could offer coverage to 20 plus countries by 2020.”Received its capitalized through financing of $200 million by the United Kingdom’s Department for International Development (DFID) and Germany’s KfW development bank on behalf of BMZ, the German Ministry for Economic Cooperation and Development. Additional partners include the International Fund for Agricultural Development (IFAD), Rockefeller Foundation, Swiss Agency for Development and Cooperation (SDC), Swedish International Development Cooperation (SIDA), and the World Food Programme (WFP).Source - http://www.thecropsite.com

Nepal - Blight set to destroy 30% potatoes

Potato worth around Rs 80 million has been destroyed due to blight in Dhanusha district following the cold wave for the past few days.According to the District Agriculture Development Office, Dhanusha, potatoes cultivated on 2,325 hectares of areas in the district this year, 10 per cent or 3,135 metric tonnes of potatoes was destroyed by the blight.Planning Officer Surendra Goit said that only 28,249 metric tonnes of potatoes was produced this year.The government has declared Jhatiyahi, Khariyani, Suga Nikas, Satokhar, bafai, Haripurharbara, Mithileshwor Nikas, Dhilla, among other VDCs as potato pocket area. Around 35 per cent farmers are involved in commercial potatoes cultivation in the district.The government has been providing subsidy to potatoes farmers to make them self-dependent in potato farming.Agro experts estimate that the blight would destroy more than 30 per cent potatoes in the district if the cold wave continues.A total of 15.666 million metric tonnes of potatoes worth Rs 227.38 million was imported to Nepal from India through Plant Quarantine Check Post, Bhitthamod last year.Source - http://www.freshplaza.com

Mexico - Storm wiped out 20% of avocado in Mijas

According to the avocado producer's cooperative in Mijas, more than 600,000 kilos of avocados have been lost after winds and rainstorm hit the town of Mijas on Monday. The data is still provisional, as there will be an expert assessment in the coming days, but this amount could represent 20% of the production.According to the producers from Mijas, they had never had gusts of wind of over 90 km/h like those that occurred on Monday January 20th. "The wind brought down almost half of my crops, I do not remember such strong winds in this area. It's a shame, the avocados were almost ready to be picked," said Juan Valenzuela, a farmer from the area.In addition, the harvest has also been affected by the heat endured during late summer and autumn, making 2014 and the beginning of 2015 a real nightmare for the sector that delivers more than 3 million kilos of avocado per year.Source - http://www.freshplaza.com

Ukraine lost nearly 1.5 mln tonnes of grains in the Crimea and eastern regions

During the whole period of the antiterrorist operation, Ukraine lost nearly 1.5 mln tonnes of grains in the territory of the Crimea and uncontrollable parts of Donetsk and Lugansk oblasts, declared Oleksiy Pavlenko, Minister of Agrarian Policy and Food of Ukraine, on January 22.As a reminder, according to the Ministry of Agrarian Policy, Donetsk and Lugansk oblasts processed grains throughout nearly 1 mln ha of agricultural lands, and the harvest losses in the region will not affect the general food security of the country.Source - http://www.apk-inform.com

Australia hit by fire and flood

Australia has endured some dramatic weather in the last few weeks. Vicious bush fires in South Australia in the Adelaide hills; flash flooding in Western Australia up in Kimberley and more flooding just outside Darwin in Northern Territory.Then, a forecast of a once-in-40-year rainfall event, in South Australia, in the Flinders Ranges and further north into the Outback. That rain carried on eastwards dampening down any potential tinder in Victoria.Next in line was Tasmania and a once-in-a-decade flood. Tasmanian cherry growers watched in despair: cherries tend to burst their skins when they’re ripe and it rains. Some farmers even tried using helicopters for a quick blow dry afterwards, but it is estimated that 40-50 percent of the crop may be lost.Not to be outdone, it’s now Queensland’s turn for the downpours. Deep thunderstorms are being fed moisture from the Coral Sea, and at the same time shooting upwards into a hole in the upper atmosphere, not an unusual event but a dramatic one all the same.Thunderstorms have been torrential at times, with 18mm falling in just 10 minutes at Williamson and 42mm in 30 minutes at Emu Creek near Bowen. That is flash flood territory and includes the risk of damaging wind gusts up to 110kph.These Queensland thunderstorms have the potential to drop 250mm in just 24 hours. And the complex cause will be around for the next two days, concentrating storms between Townsville and Bundaberg and inland to the town of Emerald.Source - http://www.freshplaza.com