Dear Valued Interested Persons,
Some very strong concerns aired on Wednesday 3rd December 2019 in Canberra by Australian Farmers below:
From October 2019 the following sky NEWS article references Australian Farmers calling for Livestock Drought Insurance here
Excepts as follows:
Farmers push for Industry-funded Insurance Scheme
Sounds very similar to what OBA Consulting Managing Director, Brett O’Brien has been espousing all 2019…
Drought Insurance for Livestock
- Farmers being enabled to insure their own losses rather than relying on bailouts
Access to Insurance for Livestock covering Drought similar to Flood, Fire and other perils
From attached OBA update of 4th October 2019 – ‘Will it really come as a shock if we experience record Cattle loss due to Drought?’:
The above sky NEWS article draws parallels with events of 2016 described by Reuters below:
Australian farmers left high and dry after report rejects drought insurance – July 19th 2016
An Australian government commissioned report on Tuesday rejected drought insurance for farmers as uneconomical, dashing landowner hopes of a change in government policy which could help boost output to meet Asia’s fast-growing food market.
Australia is one of the world’s largest exporters of wheat, beef and sugar, despite farmers regularly battling droughts.
Image result for siren emojiBut unlike nearly all its major agricultural competitors, Australia provides no subsidies for drought insurance.
Farmers say the absence of such insurance undermines their capacity to invest in increasing production and meet the growing food demand from Asia’s middle class.
“It is vitally important that we have a way of offsetting the risk of drought,” said Andrew Weidemann, a grain farmer in Victoria.
“There are an enormous number of farmers that are on a knife-edge with debt so they are forced into a position to look at some risk
mitigation and the only thing available to them is these type of mediums and they are very expensive.”
After nearly three years of drought across Australia’s east coast that drove many farmers to the brink of bankruptcy, the New South Wales state government commissioned the report to investigate the feasibility of following the likes of the United States which provides agricultural insurance subsidies.
The report was the first time Australian policymakers had considered a change in policy and spurred hope from insurers such as Allianz SE and Swiss Re AG, which see Australia as a new and lucrative agricultural market.
But it rejected a change in policy, saying it was unlikely to displace current government assistance, such as concessional loans and farm household support payments during droughts.
Insurers rejected the report, insisting that drought insurance for livestock producers could be produced.
Australian Farmers want Drought Insurance for Livestock and Australian domiciled Insurers are on record saying they can do it.