16.12.2014

Azerbaijan - Gov’t keen on promoting agricultural insurance

Azerbaijan plans to adopt a new law on agricultural insurance in 2015, said Namig Khalilov, Head of the State Insurance Supervision Service under the Finance Ministry.He noted that some insurance companies offer insurance services in agricultural field. However, the new legal framework will pave the way for changes of the mechanism of state incentives in this area.“In parallel with the new law, it is necessary to implement much work including: preparing insurance products for different types of agricultural products and determining tariffs related to the type, regions and climate conditions. Moreover, insurance specialists play a big role in the stages of signing contract and determining the damages' extent. It is necessary to establish a training system and certification of specialists in the field of agricultural insurance,” Khalilov told Trend.Khalilov also stated that e-information system of agricultural insurance, which will include farmers’ data should be integrated with the information system of the Agriculture Ministry. “After the law adoption much technical work should be done, what will be possible for the next year,” he added.Khalilov said that the experience of various countries, including Turkey has been studied during the law development. “We studied Turkish experience, which ensures certain public assistance: in the form of grants, subsidies, soft loans, issued for the goods, for which the funds will be spent. Probably, we will also use the same option,” he stressed.According to the approved amendments in the law "On assistance and agricultural development in Azerbaijan", back in the summer of 2007 the share of public financing of premiums in agricultural insurance has increased from 25 to 50 percent.Alongside with wheat other things like barley, maize, sunflower, potatoes, sugar beet and vegetables were also included in the crops list, insured by the state budget. The average agricultural insurance tariff in Azerbaijan is about 1,500 manat per year ($1,921) (five percent per hectare). The average profit per hectare is approximately 25 thousand manats per year.Annually an amount to cover 50 percent cost of the insurance contract is issued by the government. However, it almost is never used by 100 percent. The specialist says one of the reason of undeveloped agricultural insurance is that many farmers do not have information about insurance as well as their opportunities (capacities).Many specialists say Azerbaijan’s current agricultural insurance market potential is estimated at 150-200 million manat. However, the amount of insurance premiums for this type of insurance in January-October 2014 stood for 2,264,830 manats (insurance of plant products - 340,100 manats, animals - 1,924,727 manats). This figure corresponds to 0.64 percent of the total market insurance in the country. Agricultural insurance payments were made at 154,370 manats (0.12 percent of total insurance premiums), 22,660 manats of which went to plant products insurance and 131,710 manats -- for animals.In January-October 2014 the volume of agricultural production in Azerbaijan was 4,637,500 manats, decreased by three times in comparison with the same period of the last year.The report says that during this period a number of livestock products increased by 3.1 percent, while crop production decreased by 8.1 percent.On November 1, 2014 in Azerbaijan, 2, 178,800 tons of grain were harvested (2,361,800 tons of maize) from an area of 954,800 hectares. Whereas, a year earlier 2,753,000 tonnes were collected from an area of 1,034,700 hectares. The harvested area of cereals and legumes totaled 989,800 hectares (98.9 percent of total sown area), tobacco - 1,1000 hectares, cotton - 22,900 hectares, potatoes - 61,700 hectares, vegetables - 75,700 hectares (99.6 percent), melons - 28,000 hectares, as well as feed sunflower - 11,700 hectares.During this period, the country produced 378,300 tons of meat, 1,566,100 tons of milk, 1,299,400 tons of eggs and 16,500 tons of wool.Source - http://www.azernews.az/

16.12.2014

Canada - Saskatchewan farmers calling for crop insurance change

Extensive flooding this summer is still causing a ripple of problems throughout southeastern Saskatchewan.Yields for crops in this year's harvest were lower than average due to the moisture in the soil.Now, some farmers want to see changes made in the way the province covers flood damage to crops and fields, and they want southeastern Saskatchewan declared a "disaster area", in order to free up money.A group of farmers met in Raymore on Sunday to form a petition to forward to the provincial government."It's not just a number on a ledger. This is the real thing," said Matt Gehl, a board member for the National Farmer's Union (NFU)."This could mean the difference between losing more family farms in this province, which we just can't afford to do."The NFU and the Agricultural Producers Association of Saskatchewan say the program as it stands now is not working."The current crop program was designed in a time of drought and doesn't handle floods all that well, maybe it's time to take a long look at how crop insurance is handled," Gehl said.The group is also attempting to send the petition to the House of Commons in Ottawa.Source - http://www.cbc.ca/

16.12.2014

India - Rain and hail cause havoc in grape producing area

The Indian grape growing area of Nashik was hit by rain and hail this weekend, the full extent of the damage will not be known for a few days but sources say around 30% of the crop could be damaged.Officials have begun assessing the damage to the produce, which could be almost 100% in some cases.Six talukas of the district were hit by 1,202mm rainfall accompanied by hailstorms resulting in a loss of crops on about 38,500 hectares, district officials said.After destroying 18,000 hectares of grapes on Thursday, rain continued to cause more destruction. Mango and cashew crops in northern parts of Maharashtra had to bear the maximum brunt of such unseasonal rains.Heavy showers on Friday damaged mango flowers in Konkan. Famous Alphonso mangoes in Ratnagiri have also been severely affected.“There has been severe damage due to the hailstorm. Almost 60% of grape foliage has been damaged across 1,200 acres,” informed Nalin Rawal, business head, Agri business solution, Skymet Meteorology Division in India.According to Skymet, with a wind speed of 30 kmph, rains were witnessed in several parts of the Nashik District. The devastating rain causing damage was 9.5 mm in Wadnair, 11.2 mm in Umrane, 6.8 mm in Nandgaon, 5.3 mm in Deola, 3.05 mm in Pathardi.Due to the rains, temperatures in several parts of Nashik dropped by 6-8°C last evening.Source - http://www.freshplaza.com/

16.12.2014

Australia - Territory Horticultural Farm in liquidation owing more than $1.3 million

Territory Horticultural Farm (THF) is in liquidation, owing creditors more than 1.3 million dollars.The 60 hectare watermelon and pumpkin farm in Ti Tree, 180 kilometres north of Alice Springs, was recently decimated in just over an hour by extreme hail, rain and wind.Macks Advisory is handling the liquidation.Firm principal Peter Macks says the rare event may have ended THF but the horticultural operation itself remains viable."The trial crop was perfect and they were just commencing harvest," he said."It's not very helpful when suddenly it all gets decimated by a hail storm."Mr Macks estimates the value of the lost crop to be 'easily' 2.5 million dollars."That's what the crop was going to fetch," he said.Mr Macks cites debts to various creditors that amount to more than 1.3 million dollars and, without crop insurance, says it will be difficult for any creditors to get paid.But he says there are many opportunities for the landowners, TTG Nominees, and for the future of the farm."There is nothing wrong with the business model that was set-up, other than the insurance issue," he said."Surely the probability of a storm decimating a crop again is fairly low."Source - http://www.abc.net.au/

16.12.2014

India - Wild elephants damage crops

Wild elephants moving in search of food, passed through Ramapur village in Dharwad taluk on Sunday and damaged paddy and sugarcane crops.Villagers who spotted them on Sunday morning raised an alarm and used firecrackers to send them back to the forest. The herd included five adult elephants and two young ones. The crop loss is estimated to be around Rs15,000.The same herd had appeared on the outskirts of Kittur in Belgaum district four days ago. The herd moved towards Kambarganavi near Alnvar, according to forest officials.Source - http://www.newindianexpress.com/

16.12.2014

India - Hail damaged crops on 33,000 hectares

The number of farmers, who suffered crop losses due to hail, has gone up and the area affected has climbed as the district administration completes assessment of the damage. The two days of sudden rain and hail damaged crops over 33,435 hectares in the district.Resident deputy district collector Jitendra Kakusthe said over 50,000 farmers in the district have been affected due to the unseasonal rain and hail. The administration has completed the survey of the affected area and is in the process of compiling the details of the extent of damage."The unseasonal rain that lashed parts of the district last week has destroyed crop across 33,435 hectares owned by 50,437 farmers. The grapes, pomegranates, onion, wheat crops are worst affected," Kakusthe said.Double tragedy has hit the Malegaon taluka. The crop on over 7,300 hectares of farms across 22 villages, which were battered by heavy rain during the monsoon, was also affected by hail. It received 15 mm of rainfall and 1,650 farmers were affected."A total of 290 villages have been affected and the panchanamas have been completed. The onion crop was the most affected as 10,558 hectares of onion farms, in various stages of plantation, were destroyedGrapes was the second-most affected crop with 9,083 hectares lost and pomegranates was the third most affected crop with 8,447 hectares lost," Kakusthe said.The strawberry cultivation across 35 hectares has also been hit. Wheat farms spread over 560 hectares, jowar on 450 hectares and vegetable of 1,548 hectares were lost in the rain."The available data has been presented to the state government. The administration is awaiting further government orders on the issue," a senior official from the collectorate said.Source - http://timesofindia.indiatimes.com/

16.12.2014

India - Maharashtra farmers seek compensation for crop loss

Farmers in several parts of Maharashtra took to the streets on Saturday demanding compensation for their destroyed crops as hailstorms and unseasonal rain continued to ravage the Western and Northern parts of the State.Earlier in the day, hundreds of farmers from North Maharashtra blocked the Mumbai-Agra highway for hours, strewing cartons of grapes frozen and damaged by hail, accusing the government of being indifferent to their plight.Beleaguered farmers also staged protests in several parts of Nashik district, demanding swift action from authorities. According to reports from district headquarters, around 20,000 hectares in Nashik district alone have been laid to waste by the unseasonal rain with staggering losses in cash crops like wheat, grapes, pomegranates, onion and chilies.Sangli district in Western Maharashtra witnessed an intense, hour-long bout of hail, while several tehsils in Ahmednagar and Dhule districts have been subjected to unrelenting rain and hail over the last two days leading to the death of one person in rural Dhule.More than 200 hectares in Ahmednagar are said to be ruined along with severe losses in livestock.The damage to the Rabi harvest is extensive in Northern Maharashtra, say authorities. This is the second bout of unseasonal climate to hit the State after hailstorms damaged the Kharif crop in Nashik and Osmanabad in March this year, leading to a spurt in farmer suicides in the region.The State is in the throes of a full-blown agricultural crisis after its drought-prone Eastern parts, namely the rain-shadow regions of Marathwada and Vidarbha have been experiencing consecutive bad rainfall years since 2012. Over 19,000 villages in these parts have been declared ‘drought-hit’ by the Devendra Fadnavis government.The current winter crisis in agriculture and horticulture is set to stretch the resources of India’s most debt-ridden State.The situation looks bleak as weather officials expect no let up in the situation for the next 48 hours. More hailstorms are projected in January, they say.Meanwhile, Minister of State for Cooperatives, Dada Bhuse visited Nashik and assured afflicted farmers of speedy relief. Nationalist Congress Party leader Chhagan Bhujbal, also on a tour of Nashik, demanded the government pay a compensation of Rs. 50,000 per hectare to farmers.Source - http://www.thehindu.com/

15.12.2014

India - Crop Insurance: Is It Time To Move Away From Government-sponsored Schemes?

Going by the references to farming in Vedic literature (the oldest among them dates back to 1100 BC), Indians have been depending on agriculture for sustenance for thousands of years. Though the broad-based economic growth over the last few decades has resulted in dwindling of agriculture land and reduction in allied activities, the country still ranks second worldwide in terms of farm output and agriculture accounted for 13.7% of Gross Domestic Product and more than 50% of the total workforce in the country in 2013. However, extreme vagaries of weather have always played truant, making farming a highly risky activity. This problem has historically manifested through two situations—lack of rains leading to draught and subsequent famine-like conditions and excess rains or floods as well as sudden, unexpected rains leading to destruction of crops. For example, while lack of scant rains is detrimental to paddy cultivation, on which thousands in the country have been depending or staple food, excess rain and wind can completely destroy banana cultivation.This is where agriculture or crop insurance—that is a key tool for risk transfer against the threat arising out of climate changes—comes into the picture. Risk transfer through insurance can lend a sense of safety against the possibility of losses. In a nutshell, insurance is a mechanism by which risks, or part of a risk, are transferred from the insured to the insurer in return for a premium payment. Crop insurance especially aims to protect farmers against financial losses due to uncertainties that may arise from crop failures/losses arising from unforeseen perils beyond their control. Given that millions of people in India depend solely on agriculture for livelihood, many farming activities can be risky in sense a possible failure will be too damaging (a spate of suicides during the microfinance crisis in Andhra Pradesh is a case in point) wherein the affected may either not recover or struggle hard to be back on their foot.Crop insurance has existed in India in some form since 1970s. The National Agricultural Insurance Scheme (NAIS), that insures 25 million farmers, is the largest crop insurance scheme in the world. Crop insurance schemes are subsidised for small and marginal farmers and are compulsory if the farmer takes out a loan to buy seeds, etc. In addition to NAIS, government-sponsored crop insurance schemes include Weather-Based Crop Insurance Scheme (WBCIS) and a clutch of schemes offered by state governments. Since 2003, private firms have also been providing crop insurance in the country and also working in tandem with NGOs besides collaborating with government schemes to deliver various crop protection schemes.These schemes do not actually reduce the physical risk that a farmer faces; instead they transfer the risk of financial loss to the insurer. According to a global survey of 123 insurance schemes in low and middle-income countries, the full potential for using risk transfer for agricultural losses is far from exhausted.Though the penetration crop insurance is yet to reach a significant scale considering the massive farming community in the country, crop insurance has played a key role in supporting farmers in recovering losses incurred during drought years.Though India's crop insurance programme is the world's largest, issues in design, particularly related to delays in claims settlement, have meant that a huge section of farmer households are still excluded from crop protection schemes despite significant government subsidy. While efforts are on to revise government crop insurance schemes, including NAIS, increased awareness and private sector participation may lead to programmes that can offer more timely, claim settlement and less distortion in the allocation of government subsidies. It is also time the government made a shift from social crop insurance programmes with state funding to market-based programmes with realistic premium rates and enhanced product features, in line with the best practices adopted by global peers.Source - http://www.businessinsider.in/

15.12.2014

Philippines - Damage from typhoon Ruby hits P3B ($67M USD)

The Philippines’ disaster relief agency said damage wrought by the strongest typhoon to hit the country this year has reached a total of P3.19 billion $67M USD). Of the figure, P1.91 billion accounted for farm losses, which an agriculture official said is “minimal.”Damage to high-value cash crops (such as banana, mango, papaya and vegetables), almost entirely borne by Bicol, cost P226.4 million. ($5M USD)In a briefing on Thursday morning, Department of Interior and Local Government (DILG) Secretary Manuel “Mar” A. Roxas II said that the situation in Eastern Samar, where the storm first hit land on Saturday evening, had “stabilized.”The damage report covers the province of Quezon, Marinduque, Romblon, as well as the regions of Bicol and Eastern and Western Visayas.The damage covers 55,872 hectares of farmland that are mostly at the vegetative and reproductive stages of growth.These losses are still considered “minimal compared to other typhoons,” Agriculture Undersecretary Emerson U. Palad said via text yesterday.Source - http://www.freshplaza.com/

15.12.2014

Chile - Government to provide financial assistance

The rains in late November destroyed part of the production of the Maule Region.The government announced they would assist the cherry producers from the Maule region that were affected by the rains with $100 million pesos (US $160,000).The Minister of Agriculture, Carlos Furche, stated that the deadlines to pay the credits to the Indap would be extended and that they would subsidize farmers so they could recover economically.The sector believes that the installation of covers is an alternative that would help them protect their cherry orchards in the future and have asked the government for aids to finance such facilities.Source - http://www.freshplaza.com/

15.12.2014

USDA expands insurance to specialty crops

The U.S. Department of Agriculture has expanded coverage for specialty crops traditionally ineligible for federal crop insurance.Created by the 2014 Farm Bill, the Noninsured Crop Disaster Assistance Program offers protection to crops, such as vegetables, fruits, mushrooms, floriculture, ornamental nursery, aquaculture, turf grass, ginseng, honey, syrup and energy crops, according to a news release.In the past, the program offered coverage at 55% of the average market price for crop losses that exceed 50% of expected production. Producers can now choose levels up to 65% of their expected production at 100% of the average market price.The expanded program also helps beginning and underserved producers as well as limited-resource farmers, who will receive fee waivers and premium reductions, according to the release.The USDA has partnered with Michigan State University and the University of Illinois to create an online tool at www.fsa.usda.gov/nap that helps producers determine whether their crops are eligible for coverage.It also allows users to explore different options and levels to determine the best protection for their operation.If the application deadline for an eligible crop has already passed, producers will have until Jan. 14, 2015, to choose expanded coverage through the Noninsured Crop Disaster Assistance Program.Source - http://www.thegrower.com/

15.12.2014

India - Maharashtra government to make agri nets available for horticulture farmers

Maharashtra Chief Minister Devendra Fadnavis said the state government will try to make specialised agri nets available for horticulture farmers locally as they have been proved to be effective in protecting crops during hailstorms that lashed the district."Those horticulture farms covered with the specialised agri nets suffered lesser damage in the hailstorms. (Currently) These nets have to be imported from abroad. We will see how these nets could be made available to farmers at reasonable prices locally," the Chief Minister said while addressing farmers at Vadner-Bhairav village in the district during his visit to the affected areas.He said the government was also considering to provide financial assistance to affected farmers through the Crop Insurance Scheme."We are thinking to install about 2,000 machines in the state to give information on the climate in advance (so as to save the damage to crops)," Fadnavis added.The Chief Minister visited Niphad, Dindori and Chandwad towns in the district that were badly hit by the hailstorms on Saturday.Source - http://post.jagran.com/

15.12.2014

USA - Oregon economy loses $83.5 million to weeds

A new study shows two dozen of Oregon's most significant invasive noxious weeds cause an estimated annual loss of about $83.5 million to the state's economy.Losses include livestock deaths, reduced cattle foraging and wildlife grazing, smaller crop yields, decreased quality of seed and crop, and even the loss of available fishing and hunting opportunities.Two weeds — Scotch broom and Armenian blackberry — contribute nearly $80 million of the losses.Twenty-three other species are under intense management to stop their spread. The study shows if the state did nothing to control them, it could lead to potential losses of about $1.8 billion.The study was prepared by The Research Group, LLC of Corvallis for the Oregon Department of Agriculture.Source - http://www.statesmanjournal.com/

15.12.2014

Georgia - Agriculture Ministry plans subsidies` allocation for winemakers` insurance

Giorgi Samanishvili, chairman of National Wine Agency, declared that Agriculture Ministry plans allocation of subsidies for winemakers’ insurance.At the meeting with winemakers, held in these days, Samanishvili said that insurance terms are subject of private agreements between insurance companies and winemakers, while the Ministry will allocate subsidy after establishment of these terms.Regarding role of the Agency in the insurance, Samanishvili said that it will be restricted to giving recommendations only.Source - http://georgien.ahk.de/

15.12.2014

Central America drought turning into humanitarian crisis, UN warns

A prolonged drought in Central America is turning into a humanitarian crisis for nearly two and a half million people affected by food insecurity in Honduras, Guatemala and El Salvador, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) warned.Briefing the press in Geneva on Friday, OCHA’s Jens Laerke said most of those affected are subsistence farmers, farm labourers and low-income families.In Honduras and Guatemala, up to 75 per cent of maize and bean crop has been lost and thousands of cattle had died. In the coming months, food insecurity is expected to get worse as families deplete their food stocks.In Guatemala, the Government declared a state of public calamity in 16 departments in August and by October, 30,000 families had finished their food stocks. Those families were on Friday in deep distress, said Laerke.In the so-called “dry corridor” in eastern Guatemala, a joint Government/UN/NGO (non-governmental organization) assessment found that one in four households suffered from moderate or severe malnutrition. Children under five, pregnant women and female-headed households are most vulnerable, said Laerke.In Honduras the Government had declared a state of emergency in the drought affected western areas, as crop loss had reached up to 75 per cent. Assessments also found high levels of malnutrition in children under five. An emergency assessment in September found that nearly 20,000 children were malnourished as a consequence of the long drought, said Laerke.In El Salvador, the Ministry of Environment and Natural resources had reported that the country was experiencing its worst drought since 1977. The authorities said that in hotspot areas in the eastern part of the country, more than 80 per cent of farmers reported that they have lost all of their crops.Humanitarian Country Teams had drafted Emergency Response Plans in Honduras and Guatemala to support the Governments in dealing with this emergency and UN agencies were also supporting the Government in El Salvador.Giving more details on the various appeals by affected countries, Laerke said in Honduras, the Government has appealed for international help. More than $13 million was needed for the Emergency Response Plan and the Central Emergency Response Fund (CERF) had provided $2.6 million in funding.In Guatemala, the Government had launched a $28 million Action Plan and was seeking $17 million in support. In El Salvador, UN agencies were also preparing to apply for funding from CERF.Source - http://indiablooms.com/

15.12.2014

India - Heavy rain destroys paddy

Nearly 7,500 acres of paddy crop was damaged due to heavy rainfall in the past two days in Erode district. Farmers estimate a loss of at least Rs2 lakh per acre.Sudden heavy rainfall lashed parts of the district on Wednesday and Thursday. Areas such as Vairapalayam, Karungalpalayam, Vandikkaran thottam received heavy rain and water stagnated on the paddy fields. "Most farmers in the district began harvesting the crop about three or four days ago. We didn't expect rain at this time and nearly 95% of the crop has been submerged under rain water," said S K Paramasivam, a farmer in Karungalpalayam. He said that the land owners brought labourers from Namakkal and its surrounded districts to carry out harvesting work. Now they were demanding almost double the wage to carry out the work due to flood water. Usually, male workers are paid Rs. 300 per day while women get Rs. 250 as wage. Now, they were demanding Rs.500 for men and Rs.400 for women as they have to stand in the water to carry out their work. "The labourers have to stand in knee-deep water while for harvesting. We have no option but to pay the increased wage," the farmer said.Most farmers in the district fear that crop failure due to flood could result in huge debt as they took loans from many nationalised banks. "The bank officials are never sympathetic to our cause. The will demand payment within the due date," said a farmer. The farmers have sought compensation from district administration for the loss incurred. "We will be happy if we get some compensation. We have requested the collector to revenue officials to estimate the loss incurred at the earliest," said C Senthamarai, another farmer.Source - http://timesofindia.indiatimes.com/