More farm income protection needed

 According to AssetInsure, the product was revoked due to poor uptake and the lack of a viable market in Australia. This news will come as farmers across NSW take stock of an up and down year – many crop yields will be below average and, in some areas, promising crops have been destroyed by late-season frost or heavy rain.

 One of the key benefits of these insurance products is that they can assist farmers to ride-out these adverse situations, reducing pressure on farm business budgets and allowing farmers to continue investing in their business, and their local communities.

 At our annual conference this year, NSW Farmers recommitted to the need for a multi-peril crop, or farm income protection, insurance market to be developed in NSW and Australia. We believe that more education about the opportunities of these insurance products is essential to drive the creation of a stand-alone and viable market into the future.

 We have also called on the Federal Government to consider tax incentives, which encourage farm businesses to purchasing these policies. While these insurance products are often associated with the grains industry, their application may also benefit horticulture and livestock producers. 

NSW Farmers believes that any work by government to encourage the development of a farm insurance market must also include how these sectors can access the schemes. Many farmers remain unaware of the benefits which can come from these products. 

This lack of knowledge is resulting in many deciding it is simply too hard to change their existing arrangements. Education is essential if we are to see this market prosper. Government financial assistance would also greatly assist farmers in considering available products.

- NSW Farmers Grains Committee Chair Rebecca Reardon.