WITH a plethora of products available, one of farmers’ major gripes with the fledgling multi-peril crop insurance (MPCI) industry is finding a way to compare apples with apples in terms of the various options and what cover they provide.
National grain farmer representative body, GrainGrowers, has released an updated report that attempts to answer some of these questions, highlighting the range of MPCI options available for grain farmers.
The report, Managing risk using Multi-Peril Crop Insurance 2018, was produced by GrainGrowers with technical support from Kondinin Group to raise awareness of the MPCI products currently on the market.
Disturbingly, the topic of MPCI is of major interest to many grain growers across the country at present as they contend with a lack of autumn rain.
For farmers in the northern cropping belt this also follows a tough 2017 winter cropping season.
GrainGrowers chief executive David McKeon said the report would hopefully allow farmers to improve their understanding of MPCI and what it could and could not provide their businesses with.
“Our goal is to inform farmers about the types of product on the market, the application process and associated costs,” he said.
Mr McKeon emphasised that GrainGrowers was not advocating MPCI over other risk management tools.
“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.
"The Managing Farm Risk Programme was a key element of the Government’s Agriculture White Paper, and while the programme has faced some challenges, we encourage farmers to consider whether they can benefit from the assistance available," said Mr McKeon.
The report also highlights that some states appear to be doing more than others in improving the uptake of MPCI products.
"On top of the cost of a policy, stamp duty can add further significant cost.
“While governments in Victoria, South Australia and NSW have removed stamp duty on MPCI policies, governments in Western Australia and Tasmania still charge 10 per cent, while the Queensland Government charges 9 per cent," said Mr McKeon.