New insurance policy launched to protect farmers against poor crop yields

[The Business Barn]

Launched at Cereals this morning...

Farmers can now protect themselves against poor crop yields with a groundbreaking insurance policy that will compensate them for production shortfalls.

Crop Shortfall Insurance, from rural insurance specialists Lycetts and Farmers & Mercantile Insurance Brokers (FMIB), will automatically trigger pay-outs to farmers if extreme weather causes yields in their region to fall below the historic average. The policy is Britain’s first ever to insure shortfalls in cereal and oilseed rape crops.

Read more here >>>

 

[Widgetone]

One of the big players in Aus has done this on a huge scale - see GrainCorp on the interweb!

Will yields on UK farms vary that much to warrant this though?

 

[D14]

Launched at Cereals this morning...

Farmers can now protect themselves against poor crop yields with a groundbreaking insurance policy that will compensate them for production shortfalls.

Crop Shortfall Insurance, from rural insurance specialists Lycetts and Farmers & Mercantile Insurance Brokers (FMIB), will automatically trigger pay-outs to farmers if extreme weather causes yields in their region to fall below the historic average. The policy is Britain’s first ever to insure shortfalls in cereal and oilseed rape crops.

Read more here >>>

So the UK's average wheat yield is 3.3t/acre but you have a farm that averages 4t/acre. They won't be able to cash in unless their yield is below the national average? even though in a bad year they produced 3.5t/ac which is bad for them but not within the claim level? Also who determines 'extreme weather'. What is 'extreme weather'? 110mm of rain in June 2019 resulting in flat crops?
It all sounds like another scheme to remove money from the farmer and then not paying anything back out.

 

[horizontal]

There isn’t the margin on average returns to fork out for all these so called schemes. I’ve priced up several options in the past six months and have concluded that I’m better off keeping my money in my pocket and ‘self insuring’ by building a reserve and spreading my enterprise risk. Way too many businesses trying to live off the back of commodity production which is the problem you get when a service based economy finds it can only make a living off a manufacturing base (which is declining rapidly).

 

[shakerator]

I didn’t put any fert or fungicide on

Atlantis doesn’t work

I got bydv

Weather was “extreme”

Can I claim ?

 

[Pilatus]

Launched at Cereals this morning...

Farmers can now protect themselves against poor crop yields with a groundbreaking insurance policy that will compensate them for production shortfalls.

Crop Shortfall Insurance, from rural insurance specialists Lycetts and Farmers & Mercantile Insurance Brokers (FMIB), will automatically trigger pay-outs to farmers if extreme weather causes yields in their region to fall below the historic average. The policy is Britain’s first ever to insure shortfalls in cereal and oilseed rape crops.

Read more here >>>

Historic Average for region???What regions will the insurance company be using ,a map of the regions would be useful for all to see? Whose historical average yields of the region will they be using?
Crop insurance seems more applicable to countries like Canada and Australia where they get extreme conditions , hail and drought , the likes of which we have not really experienced, like it or not.