RISK EVENTS
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Risk events
22.10.2015

USA - October freeze burns tobacco farmers in Surry County

Mother nature seemed to have conspired against Surry County tobacco farmers this year, with freezing temperatures Saturday and Sunday landing the final blow. Phillip Cave, a fifth generation farmer who with his son, farms about 50 acres of tobacco in Elkin and Dobson, said the trouble leading up to an $80,000 loss started months ago. “The whole story of this crop is extreme drought in May, June and July put the crop behind,” he said. Then came October’s rain. From Sept. 25 to Oct. 4 the crop couldn’t be harvested. “We had to sit in the house and watch the rain,” Cave said. “I could have gotten it done in three days.” When the rain finally did stop, Cave got busy with the harvest. “I heard the ice was coming,” Phillip Cave said. “I worked my hind end off.” Laborers worked 17 hours that Saturday. Cave didn’t get home until 2:30 a.m. “We don’t ever work crops on Sunday but we did this year,” he said. Cave did get about 11,000 pounds of tobacco harvested before the temperature dropped. The rest? “It’s ruined,” Cave said. “Tobacco can handle a frost. It can’t handle a freeze.” The frostbitten leaves won’t cure correctly. “They won’t take the heat, it won’t yellow,” he said. The stems bend instead of breaking, which means they can’t be separated from the leaves during processing. “You can’t hide it,” he said. Insurance issues Cave wasn’t the only farmer to be affected by the cold snap. “We have had several losses reported,” said John Petree, owner of Foothills Insurance, a crop insurance agency based in Rural Hall. But Cave’s extra work harvesting the crop may hurt him. Although about six miles separate the tracts of land where Cave had harvested the tobacco before the frost and where it remained exposed in the field, they are listed under the farm serial number with the Farm Service Agency and so are considered one farm for insurance purposes. Cave couldn’t claim a loss. “I missed the whole state fair and still lost 70-80 thousand dollars,” Cave said, noting that he missed out on watching his kids show cattle — and his Hereford bull be named grand champion. Low demand, low prices When the farmer got his harvest to market, the tobacco company gave Cave a lower grade than he thought it was worth, offering him $1.40 a pound instead of about $2 per pound. “That’s not a fair price,” he said, blaming markets so flooded by low demand and an increase in foreign imports with making tobacco companies unable to pay a fair price for their contracts. And so, the buyers are assigning lower grades to higher quality tobacco as a way to drive the already low price down further. Demand was so low at the beginning of the season that Cave’s son, Preston, could not even get a contract to grow conventional tobacco. Preston Cave, a December 2014 graduate of N.C. State University, chose to grow organic tobacco for his first crop. Along with the higher demand and higher price for organic tobacco comes more work — and greater risk. With his crop also uninsured, “I lost about $8,000 Monday morning,” said Cave, who is getting married on Nov. 7. The year hadn’t been a good one for the Caves’ farming operation as a whole. Phillip Cave said his laying hens were picked up three weeks early, and that the drought hurt other crops such as corn and soybeans. “I don’t even want to walk into the soybean field,” he said. Preston said Brazil opening its markets to exports has driven cattle prices down as well as tobacco. But with the debt ratio lower on tobacco, that loss hurt the most. “Tobacco pays the bills,” Phillip Cave said. “It didn’t this year.” Admittedly still in shock from the frost loss, Phillip Cave said, “I’m thinking about selling. I didn’t tell him that yet,” pointing to his son. Preston Cave said he didn’t know if he would continue to farm the crop. “Do you stay here and take losses for four or five years or try to move on to something else?” The father and son had planned long term to use tobacco profits to expand their cattle operation. “That’s what we both love to do,” he said. Phillip Cave said, “We both love growing tobacco too. But not this year.” “There’s no guarantees in farming,” Preston Cave said. “We’re just gamblers. Gambling to feed the world.” Source - http://mtairynews.com

03.06.2015

Georgia - Vineyards hit severely by hail

In Georgia on May 29 in Khornabuji village of Kakheti hail caused significant damage to local vineyards. Source - www.agroinsurance.com Georgia - Vineyards hit severely by hail

15.05.2015

Ukraine - Drought at the East of Ukraine, winter wheat suffers

Experts conducted surveys of winter wheat at the East of Ukraine. They established impact of drought. The soil does not have the sufficient amount of moisture which can be the reason of crop kill. At the second decade of May the farmer reported that crops started to perish at some

22.07.2014

Ukraine – Risk events observed in Zaporizhzhya region (July 2014)

Loss adjustment procedures have been conducted by experts for the Ukrainian Agricultural Insurance Pool member company. Crop observed -  winter wheat, location – southern part of Zaporizhzhya region, Ukraine. During the pre-insurance inspection, on March 18, 2014, the crops on those particular fields have been considered in `good` and `fair` conditions. Recent crop monitoring has been done based on the risk report from the farm. Experts identified foliage and stem desiccation of the crops on the observed fields.   According to loss adjustment report, the actual average weight of 1000 grains on the observed fields was rated at 29.6 - 32.1 grams. Typical weight for this type of wheat is considered at 38-42 grams of 1000 grains. Grain deformation was observed.   Control yield thrashing has been performed to calculate the actual yield loss. Source - http://www.agroinsurance.com

10.06.2014

Ukraine – Concerns over barley in the season “Spring-2014”

Experts of the Ukrainian Agricultural Insurance Pool identified certain problems with winter barley in the southern regions of Ukraine, namely in Mykolayiv and Kherson regions, while doing pre-insurance inspections. While observing winter wheat and winter rye no problem were identified. According to inspections results, barley recovered from winter the worst, in south of Ukraine. As of March 31, 2014 no concerns on crop conditions in other regions were identified. Barley crop on the photos below were not recommended to be taken for insurance. Field substitution was recommended. Field #1 – Mykolayiv region One can see the complete absence of a secondary root system on the photo below Field #2 – Mykolayiv region On the photo below, one can see the lack of a secondary root system, plants are not tillered. Most of the plants on that field have formed a stalk at the time of entering the winter. Field #3 - Kherson region Tillered plants are in a depression after winter. No secondary root system is observed. Soil moisture deficit affected the vegetation renewal of barley crop. Источник - www.agroinsurance.com

05.06.2014

Ukraine - Winter barley losses observed in Lviv region - May 2014

Winter barley damage has been observed due to intensive rains and water raise to the flood plains of Dniester and Svecha rivers. Excessive water and partial flooding on the fields caused partial, and in some areas total loss of winter barley crops. Loss ratio on insured fields has not been identified yet, due to partial crop renewal and changed weather conditions. Winter barley was exposed to the adverse weather conditions - downpour, flooding, prolonged rains, which cause flooding on the fields in Zhuravnovskyy , Oblaznitskyy , Berezhnitskyy and Lyubshanskyy village councils. Source - www.agroinsurance.com

11.05.2012

Ukraine - Winterkill of canola in Kharkiv region

Insurance company insured about 1000 hectares of canola last autumn. The crops were in good condition. The crop was seeded during the last week of August and developed sufficiently to survive regular winter. In spring the crop was found perished due to dry autumn and low temperatures in winter. T

10.07.2009

Ukraine - Corn damaged by hail (fotos)

Hail damaged crops in Cherkassy oblast on July 3 and 13, 2009. Corn got significant damage however forage corn was less affected. According to insurance experts, the farmers will