National grain farmer representative body, GrainGrowers, has today released a report highlighting the Multi-Peril Crop Insurance (MPCI) options available this year for grain farmers.
The report, Managing risk using Multi-Peril Crop Insurance, was produced by GrainGrowers with technical support from Kondinin Group to raise awareness of the range of MPCI products on the market and to provide a checklist of features growers should look for in comparing one product with another.
The report was released on the same day that a number of farmers gathered to meet with policy makers from the federal Department of Agriculture and Water Resources in Canberra to explore the role of government and industry in encouraging future MPCI product offerings.
The meeting was attended by GrainGrowers Chairman John Eastburn, CEO David McKeon and National Policy Group Member, Peter Thompson who shared their experiences with MPCI products and the current Australian market.
GrainGrowers CEO David McKeon said that MPCI was just one risk management tool of many which grain farmers could use to insure their business against the risk of possible crop losses and reduced income streams caused by a range of perils.
He said the results of a GrainGrowers’ member survey about MPCI showed that a lack of information about, and understanding of, the available insurance policies and companies was a contributing factor in low uptake among grain farmers. Another was the view of farmers on the cost of premiums.
“Our goal is to inform farmers about the types of product on the market, the application process and associated costs. We plan to update the report early next year before planting of winter crops with the offerings available at that time,” he said.
Mr McKeon emphasised that GrainGrowers was certainly not advocating MPCI over other types of risk management tool.
“We are only asking that growers consider it as one tool of many which might suit their particular circumstances and requirements. Hopefully this report goes some way to assisting farmers consider the range of various options for managing perils such as frosts, droughts and pest damage.”
The booklet also includes details of the Federal Government’s Managing Farm Risk Programme, which offers a $2500 rebate for advice and assessments to help farmers prepare and apply for a new insurance policy, and of other government initiatives in this area.
“For those growers who are intending to take out MPCI next year, we encourage them to keep an eye on close off dates for applications. These are usually early, and can be at the time of harvest or before sowing of the next crop is complete.”
Source: GrainGrowers. Read the report here: http://www.graingrowers.