DISCUSSIONS at the recent Horsham consultation meeting on the Federal Government's drought resilience plan suggested there are still mixed opinions in regards to the role farm income protection, such as multi-peril crop insurance (MPCI) can play in Aussie ag.
Whether or not MPCI and similar products should feature within the resilience plan, which is separate to ongoing drought support, was a keenly contested topic at the meeting.
Darryl McCrae, founder of farm insurance business Sure Season said some form of a farm income protection product would see more confident investment right through the agricultural supply chain.
He said governments of all persuasions had failed to truly get a grip on the benefits climate risk based farm insurance could deliver agriculture.
Tim Fisher, assistant secretary for water policy with the Department of Agriculture, said he was sceptical whether a form of MPCI would be the panacea for Australian agriculture some suggested and pointed to low uptake rates.
"Something like a farm management deposit allows farmers to essentially self-manage the risk of bad years, although it is used more for tax mitigation these days."
Mr McCrae said there had been a number of constraints which had prevented numbers of those taking out insurance building to a critical mass and that he believed a viable and vibrant insurance sector could be built.
He was backed up by Warracknabeal farmer David Drage, who said he had used MPCI in the past and that it had been critical in allowing him to manage a run of dry seasons.
Gregor Heard
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
Gregor Heard is ACM's national grains industry reporter, based in Horsham, Victoria. He has a wealth of knowledge surrounding the cropping sector through his 15 years in the role. Prior to that he was with the Fairfax network as a reporter with Stock & Land. Some of the major issues he has reported on during his time with the company include the deregulation of the export wheat market, the introduction of genetically modified crops and the fight to protect growers better from grain trader insolvencies. Still involved with the family farm he is passionate about rural Australia and its people and hopes to use his role to act as an advocate for those involved in the grain sector.
