Farmers who took up multi-peril crop insurance claim it helped them sleep at night, not worrying about a third failed harvest.

The Federal Government wants farmers to take up risk management tools like insurance and for the second year is offering a $2,500 rebate on the financial health check required to take up multi-peril insurance. Farmers say it should be expanded, to include State Government waivers on stamp duty. In the US, the Government now helps farmers take out insurance on their income. The Australian Government's nudging is part of "supporting the development of a more diverse and mature agricultural insurance market, including multi-peril crop insurance," said a spokesperson for Barnaby Joyce, Minister for Agriculture. Bernard Lindsay, a cropper in the Wimmera could not afford a third failed crop. "After two really bad years I wasn't prepared to take another hit," Mr Lindsay said. In the end 2016 produced bumper crops of canola, wheat and legumes, but he could not be certain of that outcome.

"I slept pretty well knowing that if something went pear-shaped, I'd be right to go another year," he said.

"As it was the season was terrific, but there were farms that got touched up with frost and wet. "It gave me peace of mind." Mitchell Moore farms at Tallygaroopna in Victoria and he is also a plumber, which can be a secure income until you injure yourself. So he likened it to covering himself for not being able to work his day job. "It pretty much insured us for any costs of our business," Mr Moore said. "It cost us about $6,000 to $7,000, which would cover us for 100 per cent of our income. "Our bank manager likened it to income protection too. "Yes, we just think it's a no-brainer." Across into South Australia, cropper Jim Maitland at Clare, said he was carrying a big debt, so taking up multi-peril crop insurance allowed him to enter risky forward-selling. "The catalyst was probably there was a moment in time when we could forward-sell lentils, at a decile 10 price, around $1,000 a tonne," Mr Maitland said. "So we got on the front foot and sold 73 per cent of our three-year average. "That was even before we'd planted it. So we potentially had a large exposure to a failed pulse crop. "It was $14 per ha cost, with all other input costs at $550 per hectare. "$14/ha is not even another pass to spray for fungicide." Kelvin Hepworth at Donald in Victoria paid $35,000 for $360,000 guaranteed income but it took the stress out of the year. "Well this guaranteed me, if something went pear-shaped, like it did for the two years beforehand, I was going to make my repayments," he said. Those offering the different Index insurance said their product was cheaper, and more immediate. Index insurance does not attract GST or stamp duty, and for a few thousand dollars could cover today's hot weather as it dries out the soil moisture. Suffice to say crop insurance of all types are set to play a bigger role in the future. "I think it could, as costs are getting higher and higher, if climate variability keeps getting worse," Mr Lindsay said. The Minister's office said "this [rebate] approach includes supporting adoption of a suite of risk management tools, including insurance and the ability to use Farm Management Deposits as farm loan off-sets, with the ultimate aim of strengthening farm businesses and reducing the reliance on government support." Source - http://www.abc.net.au