The NFU

[Jackov Altraids]

The NFU have been the mainstay of our industry for over a century and we have all benefited from its existence.
Nobody would agree with everything they have done and I'm sure many think they should have been far more successful on some issues.

Whether you are a supporter of Red Tractor or otherwise, you must find their conduct in that respect rather confusing.
This has been troubling me for some time and I have finally thought of a rational explanation.
NFU mutual took about £850 million from farmers in insurance premiums in 2020. If they considered some of those requirements within RT reduced their liabilities, it could be worth £8.5 million for each percentage reduction.
The question is, are the policies and actions of the NFU being manipulated by NFU mutual?
With £20.8 billion of funds under management, some of the NFU's lobbying could make a big difference financially.

It might also explain the way they have always opposed a cap to payments. NFU mutual own £1.576 billion of land and buildings, maybe the cap would affect them.

We all know that NFU mutual have influence over local agents and heavily sponsor the NFU in a way that we would be very suspicious of it was any other organisation. But as the group chief executive says,"like all good farmers, we have been diversifying our risks and opportunities, resulting in a fairly even 50/50 split in our total premiums between farm and non-farm business", they don't have any priority to look after farming.

So is it the case that the NFU are brilliant at serving the interests of its farming members, except when otherwise directed by the money men at the mutual?

 

[bobajob]

Whilst not wanting to turn your thread into an NFU bashing one again.!-

I don't think by any stretch of imagination you could say the NFU are 'brilliant at serving the interests of its members' .. .!

They do an OK job sometimes!

 

[delilah]

So is it the case that the NFU are brilliant at serving the interests of its farming members, except when otherwise directed by the money men at the mutual?

If that is NFU policy, then it isn't a coherent one. The NFU back the consolidation of the food chain at every opportunity. A direct result of this is less farmers needing insurance.

 

[Jackov Altraids]

If that is NFU policy, then it isn't a coherent one. The NFU back the consolidation of the food chain at every opportunity. A direct result of this is less farmers needing insurance.

Less farmers probably needing the same values to be insured?

The NFU mutual has increased its market share of farm insurance to 77%.

Now some wise person did mention market share being the root of all evil.........

 

[delilah]

Less farmers probably needing the same values to be insured?

The NFU mutual has increased its market share of farm insurance to 77%.

Now some wise person did mention market share being the root of all evil.........

It's 77% of a shrinking market. It may be the same value of kit, but it's most definitely less farmhouses, vehicles and all the other elements that go with an autonomous business unit.

 

[Jackov Altraids]

Whilst not wanting to turn your thread into an NFU bashing one again.!-

I don't think by any stretch of imagination you could say the NFU are 'brilliant at serving the interests of its members' .. .!

They do an OK job sometimes!

It would be pretty difficult to over-estimate the positive effect that the NFU have had over the last century.
They are still doing many good things but I guess I started the thread to suggest that this might be the reason for their 'brilliance' being tempered.

 

[Jackov Altraids]

It's 77% of a shrinking market. It may be the same value of kit, but it's most definitely less farmhouses, vehicles and all the other elements that go with an autonomous business unit.

Which is why the group CEO says they are diversifying.

The question is, does that diversifying also include investing in such things as fake meat?

It might explain their reluctance to defend livestock farming.

 

[delilah]

Which is why the group CEO says they are diversifying.

The question is, does that diversifying also include investing in such things as fake meat?

It might explain their reluctance to defend livestock farming.

In all honesty, I think it is like @farmerm says about Defra and the SFI. For conspiracy you need competence.

 

[Jackov Altraids]

In all honesty, I think it is like @farmerm says about Defra and the SFI. For conspiracy you need competence.

I don't like to think of this as a conspiracy theory but as recognising that the NFU seem to have accepted the decline of the average UK farmer and are simply managing their own exit strategy. They have mentioned many times that they expect the end of BPS to result in a 30% reduction in the number of farmers without any real protest against the factors driving that likely scenario or suggesting ways to help prevent it.

I was going to refer to the tail wagging the dog. With the NFU and NFU mutual, which do you think is which?

 

[delilah]

I was going to refer to the tail wagging the dog. With the NFU and NFU mutual, which do you think is which?

 

[Jackov Altraids]

View attachment 1004248

Is 'Henry', Minette Batters or Nick Turner?

 

[toquark]

The NFU, like many big organisations, especially unions has gone from protecting the interests of its members to protecting itself for the sake of itself.

The mutual's diversification strategy, whilst objectively sensible, simply demonstrates that they are actively reducing their reliance on farmers. Therefore why should we expect them to either work in the interests of farmers or provide a superior service to them?

As @delilah says; market share of the agricultural insurance sector is irrelevant if the the overall market is in terminal decline. Better to have 1% of something than 100% of nothing.

 

[Tarw Coch]

Is 'Henry', Minette Batters or Nick Turner?

I don’t think minette has got a tail, wether she’s got one she can strap on is another matter

 

[Paddington]

I got my NFU Mutual renewal premium last month, an increase of over 10% from last year though no claims. Rang them up but they would not budge on price, asked if our collapsed sewer pipe would be covered ? Loss adjuster came out and we would be covered. We had already spent around £500 with a company but were still having problems, we were told to send their bills to the NFU. We had already paid these bills but forwarded invoices to the NFU. Two days before our premiun was due to expire we got another updated premium of a further 10% (for drainage work). So our premium for next year has increased by 20%, though we haven't actually claimed anything yet. Do they look at the weather forecast and decide if storm Charlie is coming, they better increase their premiums ?

 

[legin]

Just finished insuring with NFU after 3 generations. Saved 35%. Gone with a highley recommended company that mainly deals with farmers. Also stopped Subs. They didn't sem to bothered.

 

[Steevo]

I got my NFU Mutual renewal premium last month, an increase of over 10% from last year though no claims. Rang them up but they would not budge on price, asked if our collapsed sewer pipe would be covered ? Loss adjuster came out and we would be covered. We had already spent around £500 with a company but were still having problems, we were told to send their bills to the NFU. We had already paid these bills but forwarded invoices to the NFU. Two days before our premiun was due to expire we got another updated premium of a further 10% (for drainage work). So our premium for next year has increased by 20%, though we haven't actually claimed anything yet. Do they look at the weather forecast and decide if storm Charlie is coming, they better increase their premiums ?

Sounds like you’d be wise to get a quote from another insurer.

If I were you I’d be up front and tell them what your position is….and ask for a comparison price. Once you know how competitive or not things are you can then decide on a path forward.