Agroinsurance

Australia - Birds attack giant watermelons at Chinchilla

Plump, juicy watermelons have proved too much temptation for some hungry cockatoos near Chinchilla, Queensland.The giant watermelons Terry O'Leary was planning on entering in the Chinchilla's Big Melon competition have been attacked by birds."I had a couple there that were looking pretty decent, but with the big melon, the cockatoos just came in and pretty well shredded it, they just pull the rind and the flesh off to get to the seed."Crows are also a problem year in year out, because the watermelons are grown close to the Charlie's Creek catchment, where there is habitat for the crows to live in."It is pretty well a fast food joint, they can just come and land in the paddock and have a feed of delicious melon and fly back," said Mr O'Leary. "The cockatoos aren't as bad for the seedless watermelons because unlike the crows they're not after the flesh they're just after the seed, and our cockatoo population has actually learnt to only go for the seeded watermelon not the seedless."It caps off a tough year for the Chinchilla watermelon grower with strong supply reducing prices for watermelons."We're into our ninth week of prices that are below, or just coming up to the cost of production now," he said. "Mainly because we've had such good weather especially on the coast and a late wet season coming into the north so there's still fruit coming out of north Queensland and they've normally well and truly stopped by now.The quality that was coming out of here early on was quite exceptional, it's just a shame that we were giving them away."Source - http://www.freshplaza.com

Mexico - Acid rain damages mango crops

As a result of acid rain fallen in late December in the Mexican state of Guerrero, 30% of the region's mango production, the country's largest producer, was damaged and will have to be sold in local markets of Acapulco, Chilpancingo or Zihuatanejo.Producers in the area known as "Region of Sanluises", which covers the towns of San Luis San Pedro, San Luis de la Loma and Nuxco, had been obtaining good prices from the sale of Heidi, Ataulfo and Manila mangoes in the domestic markets."Prospects for the current season so far are good because we had a very good flowering. But these rains, which have fallen at an unusual time and which are very acidic, will accelerate the multiplication of bacteria. It's a shame having to face this issue at a time of the year when we usually get the best prices, as Guerrero's producers are the first in the season to enter the market with significant volumes," said municipal commissioner of San Luis de la Loma, Guillermo Ruiz de la Peña.He stressed that the damage is only cosmetic, and thus the fruit can be marketed for processing; growers will strengthen sanitary measures to try saving as much fruit as possible.According to the Service for Food and Fisheries Information (SIAP), Guerrero, with 22% of the total, is the the country's largest mango producer, followed by Nayarit with 17% and Sinaloa with 14%, which together accounts for 53% of the domestic production.Source - http://www.freshplaza.com

Egypt - Egyptian cotton hangs by thread after state subsidy axed

It is the pride of linen departments around the world. Yet depending on who you believe, the days of Egyptian cotton – the source of what some see as the softest and most durable bedsheets on the market – may be numbered.According to farmers in Egypt, the government’s recent decision to end subsidies for cotton growers sounded the death knell for an already declining industry. They say the subsidy was the difference between breaking even and making a loss.“The margin is very low and, with no subsidy, I think that no farmer will grow cotton any more,” said Gamal Siam, a cotton farmer, agricultural economist at Cairo University and former adviser to Egypt’s agriculture ministry. “This is the end of Egyptian cotton.”Farmers such as Khouli have given up cotton growing, while Siam said the removal of this year’s subsidy was the last straw for him. “Myself, I’ve decided not to grow Egyptian cotton any more,” he said. “It’s just wasting time and resources.”The government feels there is little point in propping up cotton producers at a time when the state is short of money. The global cotton price is low and Egyptian cotton mills mainly process foreign cotton fibres, which are shorter and easier to work with than the fabled local long ones.For Siam, the loss of a crop that is synonymous with his country, and which all farmers were once legally obliged to grow, is cause for sorrow: “It’s a valuable thing for me and my culture. “It’s very famous, everywhere I go in the world, everyone knows Egyptian cotton, and everyone wants something made from it.”Some in the export sector say the crisis is overblown. Ahmed el-Bosaty, president of the Alexandria Cotton Exporters Association, pointed out that the subsidy was a recent introduction anyway. There was still a chance, he said, that financial incentives would be given later in the year to mills to encourage them to buy more local cotton.“I think this has really got out of proportion,” said Bosaty, who also heads Modern Nile, one of Egypt’s biggest cotton export firms.“The default is that there is not a subsidy [to farmers].”Officials at the agriculture ministry did not respond to requests to clarify the issue.For a start, Townsend thinks Egypt’s own cotton production will not disappear entirely. Even if it did, it would be still two years before UK felt the effects – cotton picked in late 2014 will not arrive in sheet-form on the British high street until late 2016. In any case, Egypt only provides about a sixth of the world’s high-quality, long-staple cotton.Countries including the US, India, Peru and Sudan all grow the same kind of cotton, and could pick up the slack if there was demand to do so. They would also be legally entitled to call it Egyptian cotton, said Townsend: in the 1920s, Egypt did not defend its copyright to the term. “So courts around the world ruled that ‘Egyptian cotton’ had become a generic term that referred to any cotton in this long fine form.”But back in Egypt, none of this is much consolation for the likes of Gamal Siam. “I feel very sad,” he said. “Egyptian cotton has cultural importance. They used to call it the fourth pyramid.”Source - http://www.theguardian.com

World's Wheat Yields expected to Decline in Near Future

Researchers are telling farmers that the world's wheat yields are expected decline in the near future and the world also stands to lose 6% of its wheat crop for every degree Celsius.A study recently published in the journal Nature Climate Change tells that how expected wheat loss could total up to one fourth of the annual global wheat trade.“The simulations with the multi-crop models showed that warming is already slowing yield gains, despite observed yield increases in the past, at a majority of wheat-growing locations across the globe”, researcher Senthold Asseng, at the University of Florida, explained in a statement.These latest outcomes are the results of an international polling of models and efforts that is part of the global Agricultural Model Intercomparison and Improvement Project (AgMIP). Climatologists and agricultural experts combined resources and it was found that they might predict the impact of warmer temperatures on wheat yield.It was found that the world is in the middle of a very clear warming trend. More record breaking hot years and fewer cold years within the last few decades have been caused because of elevated carbon levels and natural temperature anomalies.Year 2014 was recently confirmed as the hottest year ever recorded and scientific modeling has indicated that a record breaking cold year has not been seen over a century.It has been earlier found that climate change will possibly create farmland that will be more useable, which is the good news for the agricultural world and it has also been indicated that all the crops normally grown on these lands would begin experiencing fewer harvests. The Middle East and Africa are already facing crop yield declines. For example, India has generated one million metric tons more wheat in 2013 compared to 2014.Source - http://uncovermichigan.com

Africa - The worst Harmattan winds to hit top cocoa producers in several years may lower light-crop output Africa - The worst Harmattan winds to hit top cocoa producers in several years may lower light-crop output

The worst Harmattan winds to hit Africa's top cocoa producers in several years may lower light-crop output.This is according to farmers, exporters and analysts who said this, dimming hopes that they can make up ground after a slow start to the season.The dry seasonal winds began to blow down from the Sahara last month, blanketing much of West Africa's cocoa-growing regions in dust, blocking out sunlight, and lowering temperatures.The impact was visible in the world's top two producers, Ivory Coast and Ghana, but farmers in Nigeria and Cameroon said their light crop - which typically produces smaller, lower-quality beans - had not been affected.Farmers in top grower Ivory Coast said the Harmattan had hindered development of the April-to-September mid-crop."Last year at this time we had lots of flowers and cherelles (small pods) on the trees. But this year there's nothing," said Diedie Biali, who farms near the western town of Meagui.Cocoa arrivals at Ivorian ports were around 11 per cent lower than last season's bumper crop by Jan. 11, according to exporter estimates."The latter half of the main crop is kind of a done deal. So whatever effect (the Harmattan) will have will be on the mid-crop," said Victoria Crandall, soft commodities analyst with Ecobank.She said some exporters thought the Harmattan might simply reduce bean size. Others, however, predicted output losses."Our 2014/15 forecast was an overall decrease in the harvest size in Ivory Coast of 15 to 20 per cent, but with the Harmattan we think that drop will be bigger," an Abidjan-based exporter said.A European trader predicted a decrease in Ivorian output of 15 per cent, revising an initial forecast of a 10 per cent drop due to the Harmattan.In No. 2 grower Ghana, where cocoa purchases were down nearly 23 per cent by Dec. 25 according to industry regulator Cocobod, farmers and buyers said the Harmattan could trim output by 20,000 to 50,000 tonnes."It has generated concerns among everybody, particularly the farmers," said one Ghanaian cocoa buyer. "But there is room for some recovery as the rains are about to set in."A Cocobod official said the body would conduct a field assessment of the Harmattan's impact in February, before deciding whether to revise the Ghanaian production target of 850,000 tonnes of beans.A spokesman for the Cocoa Association of Nigeria said the winds were not expected to impact output in Africa's No. 3 producer."We haven't noticed any damage to the trees," Godwin Ukwu said.In Cameroon, the continent's fourth-biggest grower, farmers said trees had so far resisted the harsh conditions."If this situation goes on, that is until mid-February, it may destroy some of our plants and cut down production," said Emmanuel Nnogo Akolo, a farmer in the Centre Region, which accounts for 40 per cent of Cameroon's cocoa output.Source - http://www.cnbcafrica.com

India - Relief granted to hailstorm-hit farmers

The BJP-led state government decided in a cabinet meeting on Tuesday that compensation to farmers affected by hailstorm and unseasonal rains will be given before January 26.The recompense is applicable to all land-holding farmers. Those owning big plots will get a compensation for one hectare of affected land only: farmers with non-irrigated land will get Rs4,500, those with irrigated land will get Rs9,000, and Rs12,000 for orchard farmers. Those affected who own less than one hectare will get Rs1,000.Sunil Tatkare, state NCP president, told dna that the government had declared the compensation per hectare in the winter session in Nagpur. It was as follows: Rs5,000 for non-irrigated land, Rs10,000 for irrigated land, and Rs15,000 for orchards.The state government had already disbursed Rs2,000 crore to regional commissioners: Rs386.62 crore for Nashik division, Rs7.50 crore for Pune, Rs845.55 crore for Aurangabad, Rs500.93 crore for Amaravati, and Rs259.40 crore for Nagpur division."The regional commissioners have disbursed this money to the respective tehsil in-charge, and by January 26, the compensation will be directly deposited in the bank account of the farmers," chief minister Devendra Fadnavis said. He added that bank accounts will be opened for farmers who do not have any under the Prime Minister Jan Dhan Yojana. "Money will be deposited in their accounts soon," Fadnavis said. Farmers can withdraw this deposit as per their requirement.In December, most of the crops, including of grape, mango, banana etc, were badly hit by untimely rain and hailstorm in the 20 districts of the state.The Congress and Nationalist Congress Party had criticised the government for delaying aid to the farmers and even threatened agitation if it wasn't handed out soon.Source - http://www.freshplaza.com

El Niño will affect Colombia's agricultural activities, water supply

According to the Institute of Hydrology, Meteorology and Environmental Studies (IDEAM), "El Niño will mainly affect agricultural activities, such as the planting schedule, water consumption and the supply and demand for agricultural products."Thus, this government agency invited other authorities to maintain active contingency plans developed for the drought season affecting most of the Colombian territory."Although El Niño still has not consolidated, the warming of the tropical Pacific Ocean has influenced climate behaviour in Colombia by reducing rainfall and increasing temperatures," added the IDEAM.According to the agency, there is an 80% probability that El Niño, which is caused by the warming of Pacific waters, will affect Colombia, although its intensity may be moderate.The country is on alert these days as it is undergoing abrupt climatic conditions characterized by a lack of rain and high temperatures that, by day, reach 38 degrees Celsius in parts of the Atlantic coast, especially in the departments of Bolívar and Cesar, and in Tolima and Cundinamarca, central Colombia.At night, the temperature drops to near zero degrees Celsius and there have been frosts that have affected the agricultural sector in regions such as the plain of Bogota, Cundinamarca, and Boyacá, in the central Andean region of the country.According to the union of potato producers from Cundinamarca and Boyacá, the night chill has burned 70% of the potato crops in their areas.The Ministry of Agriculture has stated that there will be no shortages in food supply even though the extreme cold has also put at risk the fruits and flowers production and the livestock sector has reduced its production of milk.The ministry of Agriculture, together with the IDEAM and the National Unit for Disaster Risk Management (UNGRD), designed an action plan to address the possible effects of climatic changes in the agricultural, forestry and fisheries sectors.Their goal is to "design and implement tools and strategies that aim to manage climate risk through actions and measures that identify, prevent, mitigate and adapt to the risks," said Deputy Minister of Agricultural Affairs, Hernán Román Calderón.According to the UNGRD, the climate change began in late December after the rainfall cycle in some regions came to an end.The authorities have taken steps to encourage water saving, which include the imposition of fines on those who waste the resource.The UNGRD recommended that all public, private and community sectors save water to meet upcoming needs, including combating forest fires.There have been 71 wildfires recorded in the first seven days of this year in Colombia, 60 of which have already been suffocated, stated the UNGRD.Source - http://www.freshplaza.com

Nepal - MoAD unlikely to spend fund for agro insurance

It seems unlikely that the Ministry of Agricultural Development (MoAD) would be able to spend Rs 60 million — the total amount earmarked for providing subsidy on the premium of crop and livestock insurance — as participation in the programme in the first quarter of the current fiscal 2014-15 has been less encouraging.According to Ministry of Agricultural Development, it just spent Rs 1.78 million in the first quarter despite providing 75 per cent subsidy on insurance premium charged by insurance companies.In addition, as per the provision of Crop and Livestock Insurance Directive 2012 issued by the Insurance Board, farmers can enjoy additional 15 per cent discount on government provided subsidised amount if they insure through cooperatives. This means 90 per cent of the premium is covered by the government’s subsidy and the discount provided to cooperatives.“The ministry has made insurance mandatory for farmers who receive grants from projects run under the MoAD,” Udaya Chandra Thakur, spokesperson for MoAD said, adding, “We expect the number of insurers to increase in the coming days.”Grants in agriculture sector stand at Rs 12 billion this fiscal.Thakur also said that lack of awareness is also hindering farmers from insuring their crops and livestock and the ministry is also mulling over conducting awareness programmes through agriculture cooperatives to disseminate information at the grassroots level.Currently, livestock insurance covers 94 per cent of the amount spent as subsidy of premium and only the remaining six per cent is going towards premium subsidy of crop insurance, as per MoAD.The Ministry of Finance (MoF) had earmarked Rs 120 million for insurance premium subsidy in previous fiscal 2013-14, of which MoAD had spent only Rs 60 million.“For this fiscal, MoF allocated the same amount that MoAD had spent in the previous fiscal, but had promised to provide additional budget for premium subsidy of crop and livestock insurance, if required,” said Baikuntha Aryal, joint secretary and chief of the Budget Division under MoF.Source - http://www.thehimalayantimes.com

India - Private insurers may help farmers weather the storm

In a bid to protect farmers from erratic weather pattern, the government has invited private insurance companies, along with state-owned Agriculture Insurance Company of India (AIC), for providing various products relating to crop, weather and income insurance.Sources told FE that for the last two decades or so only AIC, which is owned by four state-owned general insurance companies and Nabard, has been offering yield-based and weather-based crop insurance programmes. “Ten private general insurance companies are empanelled for implementation of crop insurance schemes for increasing coverage and create competition in crop insurance sector,” an official with agriculture ministry said.The key private sector insurance companies, which have started to offer crop or weather insurance products, include ICICI Lombard, HDFC Ergo, Iffco Tokio and Bajaj Allianz. “The private sector would also bring in many innovative insurance products for catering to the need of the farmers in the context of climate change,” the official said.The official said around 30 million farmers out of 120 million have been covered under the National Agriculture Insurance Scheme (NAIS), which mainly covers yield losses. Sixty five crops and around 25% of the crop areas are covered under crop insurance. About 70% of these are accounted for by farmers who own less than four hectares and a majority of farmers had been provided insurance by AIC.“Crop insurance is going to become even more important in future, considering increasing climatic variability. Unfortunately, despite insurance reaching almost 30 million farmers today, there is widespread dissatisfaction. We need to develop simple products that are scientifically valid, economically viable, transparent, and acceptable to most stakeholders,” Pramod Aggarwal, regional programme leader, Research Programme on Climate Change, Agriculture and Food Security (CCAFS) platform, said.Based on evaluation studies, the government had introduced National Crop Insurance Programme (NCIP) after merging Modified National Agricultural Insurance Scheme (MNAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS) & Coconut Palm Insurance Scheme (CPIS) from Rabi 2013-14 season.The premium paid under NCIP is higher than the NAIS as the premium being charged is on actual basis and claim liability as present is on the insurance company. However, the official said premium under NCIP had been provided with upfront subsidy up to 75% in case of MANIS and up to 50% under WBCIS.Besides the revamped programme would offer insurance cover to the farmers where historical data on the crops are not necessarily available, thus helping farmers in dealing with the associated risk. However, NAIS would continue for a couple of years before being entirely merged with NCIP which also offering income insurance to the farmers.NAIS is also available to farmers who have not taken bank loan and covers all food crops — cereals, millets & pulses, oilseeds and some horticultural crops which past yield data is available for adequate number of years. The premium varies between 1.5% to 3.5% of sum insured for food & oilseed crops and a 10% premium subsidy is provided to small & marginal farmers.The Comprehensive Crop Insurance Scheme (CCIS), introduced in 1985 by the Centre in collaboration with state governments, was linked to short-term crop credit, where all loans for notified crops in a specific area were compulsorily covered.Source - http://www.financialexpress.com

Brasil - Dry weather worries center-west soy farmers Brazil - Dry weather worries center-west soy farmers

A long stretch of little-to-no rain since the beginning of the year in center-west Brazil is starting to worry soybean farmers, who fear productivity losses from the expected record crop.Meteorologists say an atmospheric block is stopping cold air from advancing from the south, preventing widespread rain in the top producing region of the world's No. 2 soy grower."All areas are showing a hydric deficit; it's only raining in micro-regions," Somar's agro meteorologist Marco Antonio dos Santos said of conditions in the center-west.In Goias state, responsible for 10 percent of the national crop, some areas have not seen any rain since Christmas, said Cristiano Palavro, technical consultant from Senar Goias.Where rains have occurred they have been less than needed, he said, explaining that soy plants can go up to 15 days without rain before productivity losses are seen.Somar says the blockage could break up for the end of the month, bringing needed rain. The soy crop is in the early stages of harvesting in some areas.Rainfall in general has been better in the center-west grain belt than in the southeast coffee and cane areas, but southern Mato Grosso state is on track for below-average rain in January, Somar said.Some 94 millimeters (3.7 inches) have fallen there so far compared with the 256 millimeter average for the month.Planting in the center-west was delayed this season due to a dry period in September and October, meaning most of the crop was planted around the same time."The lack of scaling exacerbates the problem, most of the crop is at the same stage," said Senar's Palavro.Nery Ribas, technical director of farmer's association Aprosoja in Mato Grosso, said January would be a critical month."Rains are essential for development, this defines the productivity of the crop and could compromise the initial estimates," he said in an Aprosoja statement.Analysts said it is too early to estimate potential losses. Government and private forecasts expect a record crop of at least 94 million tonnes.In southern growing areas, where more rain has fallen, conditions are quite favorable. In the second-largest growing state Parana, 89 percent of the crop is in "good condition," the state's agricultural department said.In No. 3 soybean-growing state Rio Grande do Sul "climate conditions are favorable" for strong yields, the state's agricultural entity Emater said.Source - http://news.yahoo.com

USA - New crop insurance option for specialty crop growers and diversified farms

USDA’s Risk Management Agency (RMA) announced the release of the Whole-Farm Revenue Protection crop insurance program for the 2015 crop year. The policy allows producers to insure between 50 to 85% of their whole farm revenue and makes crop insurance more affordable for producers, including fruit and vegetable growers and organic farmers and ranchers.Whole-farm revenue protection combines and enhances two popular and well-known plans of insurance, Adjusted Gross Revenue (AGR) and Adjusted Gross Revenue-Lite (AGR-Lite). Policy enhancements include an expanded range of coverage levels, coverage for replanting, provisions that increase coverage for expanding operations, a higher maximum amount of coverage and the inclusion of market readiness costs in the coverage.The Whole-Farm Revenue Protection program is designed to fit any farm with up to $8.5 million in insured revenue, including farms with specialty or organic commodities (both crops and livestock). The policy allows these growers to insure a variety of crops at once instead of one commodity at a time. That gives them the option of embracing more crop diversity and helps support the production of a wider variety of foods.Whole-farm revenue protection is available in 45 states, including Illinois, Indiana, Michigan and Ohio. The whole-farm premium subsidy is available to farms with two or more commodities that meet minimum diversification requirements. Producers can purchase whole-farm revenue protection in conjunction with individual crop policies as long as those policies are at a buy-up coverage level.Sales closing date for the Whole-Farm Revenue Protection program is March 15, 2015 for the 2015 crop year. Interested producers and current policyholders are encouraged to visit with a crop insurance agent to learn how whole-farm revenue protection may fit within their farm’s risk management needs. Growers must make all of their decisions on crop insurance coverage on or before the sales closing date.Federal crop insurance policies are sold and delivered solely through private crop insurance companies and agents. A list of crop insurance agents is available at all USDA service centers.Source - http://ocj.com

Europe - Drop in agricultural income

In 2014, there has been a slight drop in the agricultural income of countries who are part of the EU. In more detail, the income of European farmers decreased by 1.7% with respect to the previous year. Despite this, agricultural development increased by 33% with respect to 2009, the year in which the economic crisis started.Finland was the worst off, registering a -22.8%.As regards the single crops, Belgium was the worst hit by crop devaluation, with -15.2% per farmer. The highest increase in income (+13.3%) was recorded in Slovenia. Other countries with positive figures were Hungary (+9.1%), Czech Republic (+7.2%) and UK (+6.9%).Between 2013 and 2014, the value of agricultural production in the EU dropped by 3.5%. The lower value of the production (-6.1%) was caused by the decrease in value of potatoes (-20.3%), fruit (-10.3%) and cereal (-8.9%).Although there was a 3.8% increase in the harvest, production prices dropped by 9.5%.The Russian ban caused a drop in fruit prices, especially in Poland (-36.8%) and Hungary (-23.8%), as well as vegetable prices, especially in Estonia (-18.3%), Poland (-15.8%) and Slovenia (-14.6%).In general, the situation of the European agricultural income is quite positive, as after the drastic 12% drop between 2007 and 2009, there was a 33% recovery between 2009 and 2011. The Russian ban is starting to have its effects though, as can be seen by the decrease of produce prices in numerous member states.This data was collected and processed by the national authorities of the various European countries who were part of the study, and in accordance with the parameters established by the Agricultural economic committee (EC regulation no 138/2004). Aggregated data was calculated by Eurostat.Agricultural income is defined as the income generated by agricultural activities in a set period of time (in this case, 2014). It must not be confused with the total income of agricultural families. In order to calculate part-time and seasonal work, reference is made to annual work units, defined as the equivalent of "working time" for full-time workers.Source - http://www.freshplaza.com

USA - Kansas falls behind in wheat production because of drought

SALINA, Kan. - It's known for being the countries biggest wheat producer. Tom Maxwell is an agriculture expert and says in 2014, Kansas didn't take the lead."When yields are that low state wide, it really sets the state back."North Dakota surpassed Kansas with its spring wheat, producing 100 million more bushels than Kansas last season. Maxwell says crops always have their ups and downs, but this drought has been affecting Kansas for the past few of years."The combination of low yields and low prices means lower income."Farmers say prices are a concern when droughts last for this long. Maxwell says you may not be pulling out more cash for bread at the store, but it impacts the community as a whole."Yield time price equals revenue so there's less revenue in the community."Agland reports Kansas is down 200,000 acres of wheat from last year, and it's the lowest winter wheat seeding in 5 years. Agland says Kansas saw almost half of the wheat bushels as North Dakota last season."Have been coming though some pretty dry periods of time so hopefully we are turning that corner where we get some more rain fall."Maxwell says farmers often times have crop insurance, it helps with their upcoming season in case their previous crop didn't produce what was expected."It could be the best year we've ever had next year, there's just no way of predicting."Source - http://www.kwch.com