Symposium on Crop Insurance

Learn how Australian crop farming can be more successful with wider and deeper insurance coverage

The Symposium brings together producers, advisers, financiers and policy makers to explore the issues of farm risk management and insurance. Presenters will explain the options for crop insurance and income protection. 

Meet the practioners of crop insurance – underwriters, re- insurers, farmers and advisers. Understand the range of options for crop insurance options and income protection. Learn what are the key factors and the process for contracting and claiming on crop insurance. Contribute to the policy debate and changes needed in Government.

Who should attend?

This event is designed for operators, executives and managers from:

  • Farm enterprises and grower groups seeking to learn about new developments in crop insur- ance including their owners and investors

  • Insurance underwriters and re-insurers

  • Farm financiers including agri-investment funds, banks and other financial institutions – investment managers, lending officers, financial analysts

  • Service providers to the agri- industries – farm advisers, extension officers, accountants, lawyers, and brokers

  • Government Agencies in agriculture, R&D, taxation and financial regulation.

 Date & Time: 8:30am – 5:00pm, Tuesday 2nd December 2014.

Venue: Intercontinental Hotel 117 Macquarie Street Sydney NSW.

 To register for this event, click here.


1 Comment

  1. Jaco Van der Merwe

    Hi
    I am not an expert in crop insurance- But below is a few ideas on how to roll it out-When I was working with it that was what we did to get it going- you must give the grower a package not just one product

    We had similar products below but we managed the risk a bit different. I will keep it short

    We made our money on the below
    o Money lend out to the grower
    o Commissions on input cost sold (Remember we did not own a merchandising business at all)
    o Getting our hands on the Grain
    o Other spinoffs on the hedging of the grain on the exchange- Trading the spreads (on Safex- The ASX in Aus does not really have liquidity) in the delivery months. If you were wrong on a spread and you could not get out- you just delivered the grain on Safex exchange.

    Why would a grower take a product like this
    o The Input cost was as much as you farm was worth
    o You can’t get input finance from the bank because your balance sheet does not allow it
    o You might have money but your risk appetite is not very high and you just want to cover yourself

    The product as per below

    • We lend farmers money on the hectares they were going to plant- Say 70-60% of input cost
    • We had drought insurance that covered us on the production if they did not harvest according to the long term average
    o This insurance level is different in each production area- Places like Roma/Miles will not get any as the rainfall is too variable
    o The insurance only kick in when the crop is out of the ground
    o This is also when the money start flowing to buy input cost. Without insurance the grower does not see any money
    o We had agreements with input suppliers that we will pay the grower against an invoice up to a certain amount
    o There are rules- like you must followed certain production practices. So if you do not harvest the long-term average -it must only because of the drought and not because you have not sprayed or add fertilizer
    • The grower will be insured for 2.2 ton/ha as an example at a price that was determined pre-season. On this basis the input cost will be financed
    • Hedging took place in different stages- you cannot sell more before certain dates of crop developments
    • Crop inspections and estimates take place to monitor pricing/input risk

    That is in short

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