A leading agribusiness company, in cooperation with Australia's largest insurer, has launched a new product to help relieve the income pressure being felt by farmers due to the vagaries of market trends and weather events.
The Crop Income Protection (CIP) package, which focuses on wheat, barley, and canola crops, is being offered by Landmark through
WFI Insurance and its parent company
IAG.
The new form of crop income protection provides coverage by variety, all or part of a crop with yields based on the property’s five-year average and an assumption of four good years and one bad year in that period, said Phil Heath, IAG/WFI national portfolio manager for rural insurance.
“Unlike a lot of other insurers, we don’t require your annual P and L statements, just proof of your average yields over the past five years,” Heath said. “Once we have this information we can, via our app, give you a free quote in 15 to 30 minutes.”
The insurance will cover a guaranteed yield against weather events, such as frost, fire, flood, drought, and hail, even insect attack; and any deficit to the guaranteed yield versus the achieved yield would be paid out by the insurer in the event of a claim, the report said.
Heath said the system relied on geographic diversity and that there was a limited capacity in each of the designated shires, with each shire allocated with a fixed-dollar amount that is available on a strictly first-in, first-served basis.
“This dollar amount varies from shire to shire and may vary from year to year, but it is a finite amount – and once the quota in any given shire is used up in any given year, then that is it,” Heath said the Farm Weekly report.
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