Agroinsurance

NEWS

USA - Millions of acres of Midwest farmland eligible for backed insurance

15.07.2019 132 views

Insurance claims for unplanted crops may top $1 billion after record spring rainfall prevented Midwest farmers from planting millions of acres. As of this week, the U.S. Department of Agriculture had paid $184 million on nearly 2 million acres of unplanted land, with the money coming from federally subsidized crop insurance, which covers "prevented planting," when a farmer is unable to plant due to weather or other events out of their control. Farmers buy such plans every year from private insurance companies, but they are underwritten and controlled by USDA. The insurance plans cover several types of crop losses. The number of "prevented planting" insurance claims is expected to rise substantially in the next few weeks. Agriculture Undersecretary Bill Northey has predicted unplanted acres could exceed 10 million. "Around this area, it is unbelievable how much prevented planting there is," said Rodney Weinzier, the executive director of the Illinois Corn Growers Association. "It is far more widespread than it's been in the past." In 2018, only 2.2 million acres went unplanted. There is fierce debate among the farm community as to just how many acres were made unplantable by this spring's historic Midwest flooding. A July USDA report indicated the unplanted area was below 5 million acres for corn and soybeans. The USDA's findings did not match industry estimates, so many in the farming industry did not believe the report, and the USDA warned that the number might not be accurate. The figures were based on estimates collected in June during a time farmers still hoped to plant many millions of acres. The agency plans to resurvey farms this month and will update the report later this summer. In the meantime, insurance claims may offer a clearer picture. The deadline for farmers to submit those claims is July 22. "It is still too early to know what the total prevented planting losses will be in 2019," said Justin Fritscher, a USDA spokesman. For the farmers who receive "prevented planting" insurance payments, it will be a tough year, Weinzier said. The claims cover about half of what a farmer would have made had he been able to plant. "So, for standard crop insurance, the max you can insure is 85 percent of the crop's value," Weinzier said. "In a prevented planting claim, the max is 55 percent of that 85 percent." The crops' value is determined by averaging the farm's previous yields and incomes. The amount received from prevented planting insurance will usually come close to covering overhead costs that a farmer faced whether he plants a crop or not, Weinzier said. These are expenses like land rentals, fertilizer, tractor payments, unplanted seed and cover crops. "So even though the payments to someone not familiar with farming looked large, they didn't make any money from it," Weinzier said. "Crop insurance is only meant to offset your loss to the degree that you're not hurt so severely that you can't farm next year." Source - https://www.upi.com

EVENTS

2024 AgroInsurance International Conference: New Partners and Agenda updates

26.02.2024

2024 AgroInsurance International Conference will take place on June 3-5, 2024 in Belgrade, Serbia, at the Hyatt Regency Hotel. Planet Labs (USA) and GAF AG (Germany) are sponsors of our conference. Agremo (Serbia) has been confirmed as the Organization Partner. More partners and sponsors to be announced in March 2024.

RISK EVENTS

Spain - 30% of La Palma's banana production has already been lost due to the advance of the lava

14.10.2021

More than three weeks after the Cumbre Vieja volcano erupted, the lava that continues to flow from its interior continues to devastate everything in its path, destroying houses, infrastructure, and banana plantations. The production of Platanos de Canarias is the economic engine of the island, accounting for 50% of its GDP and 30% of the jobs on the island.

USA - Widespread root rot crop loss in 2022-23

Root rot has been established in some pea and lentil fields across North Dakota and Montana, with widespread crop loss observed in 2022-23. To help, North Dakota State University (NDSU) research is focusing on what farmers can do to reduce their root rot risk as they begin seeding their pulse crops this spring.

19.04.2024

UAE - Unprecedented floods destroy greenhouses

The United Arab Emirates experienced a "historic climatic event", according to the National Meteorological Center, which stated, "The UAE experienced the heaviest rainfall in 75 years, and the "Khatm Al-Shakla" area in Al Ain received 254.8 mm of rain in less than 24 hours." That's the equivalent of two years' rainfall by the country's standards.

19.04.2024

Philippines - P184-million crop loss to El Niño reported

Agricultural crops worth approximately P184.63 million suffered damage, while 3,427 farmers grappled with the effects of the El Niño phenomenon. Sylvia Dela Cruz, the provincial agriculturist of Capiz, reported that data from 13 municipalities showed 3,115.11 hectares of rice land impacted, with 852.41 hectares totally damaged and 2,272.70 hectares partially damaged.

19.04.2024

Canada - The B.C. agriculture sector continues to face relentless challenges, one after another

Facing increasing drought, alarming climate change, high levels of food insecurity and a myriad of distinct microclimates in all parts of the province, farmers are continually searching for ways to mitigate their obstacles.

19.04.2024

Cocoa prices hit records as West African yields decline

Cocoa prices broke $10,000 per ton for the first time in March, amid disease outbreaks and destructive weather patterns in West Africa. Cocoa futures were as high as $10,080 in New York at the close of the first quarter, having more than doubled this year – due to expectations of a shortage of cocoa beans, the raw material used to make chocolate.

19.04.2024

Bangladesh - Climate change in the north-west

The north-west — Rajshahi and Rangpur divisions — of Bangladesh produces more than one-third of the country’s staple food, especially boro rice. The region has 40 per cent of the country’s total irrigated area and 30 per cent of the net cultivable area, with the highest average rice yield.

19.04.2024

Canada - Blossoms arrive early, farmers fearful of April frost

All eyes are on the short-term weather forecast for local stone fruit farmers thanks to Mother Nature’s unpredictable ways. In a strange twist that saw this year’s mild winter help create an early explosion of healthy blooms over the past week, forecasted low overnight temperatures over the next two weeks could create a disastrous situation.

19.04.2024

USA - USDA reminds agricultural producers to report damage or losses following inclement weather

During the spring time of the year we do see inclement weather conditions, something that has occurred quite a bit over the past few weeks across the country. Due to this, the USDA Farm Service Agency (FSA) wants to remind agricultural producers to report damage or losses following inclement weather.