Last year saw Latevo introduce a new Crop Income Protection Insurance MPCI product backed by Allianz Australia that essentially underpins the growers’ income statement.
According to Agririsk Managing Director John van der Vegt, “This certainly has merit but the application process is somewhat complicated and from the quotes we have seen, is relatively expensive.”
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More recently ProCrop has introduced a Crop Input Protection policy for cereal crop growers underwritten by CGU. The product focuses on the key peril of rainfall during the flowering period, which accounts for a significant percentage of overall yield variability. However at this stage the product is only available in South Australia and Victoria.
“The product requires two triggers to be met before it will respond. Firstly the rainfall received during the flowering period between 1 August and 31 October must be less than 50% of the historical average and secondly the earnings from harvest must be lower than the agreed total cost of production,” Mr van der Vegt said.
“Both these products have taken vastly different approaches to assist growers in managing production risk and time will tell if either can provide a long term solution for growers. If you would like any additional information on either product please contact your Account Manager,” he said.