Agriculture Insurance has been in existence for approximately 200 years.
In this update we take a snapshot glance at recent commentary around Agriculture Insurance from developed Countries such as USA, China & Australia.
NB: Interesting to note from the Summary and Conclusions page 22 a Livestock policy was one of the first to be offered in Germany in the early 1800’s:
OBA Consulting formerly referenced USA Professor Floron Faries, Jr. of Texas AgriLife in this update of 21st October 2019 with respect to the Effects of Drought on Cattle.
Some in Australia called for a Royal Commission into the MDBA’s management of water and whilst that did not happen the review involving the Department of Agriculture headed by Mick Keelty released December 2019, some 8 months after the Ministers for Agricultures comments above, were also damming, no pun intended.
It could be argued that the Australian Government, as have Governments in several parts of the world, have insured elements of the financial impacts of Covid-19. Accordingly OBA Consulting make the case (in June 2019 originally) that Agriculture Risk Transfer be added to Covid-19 along with Terrorism in Australia.
In this OBA update of 21st February 2020 we referenced the financial impact (Farmers Business Interruption / potential loss of income) of the Drought at National Press Club address by Governor of the Reserve Bank of Australia, Philip Lowe, here on Wednesday the 5th February 2020 – from the 23minute mark:
- Farm output declined by 16% between 2017-2019;
- Farm exports fell by 13% between 2017-2019;
- Farm production expected to fall by circa 10% in 2020;
In the Philippines Agriculture Insurance is heavily linked to lending institutions per below.
This practice being more recognisable in Australia within property acquisition / investment via Mortgage Protection Insurance (MPI) or Lenders Mortgagee Insurance (LMI):
Linking Agriculture Insurance to lending institutions is a parallel OBA Consulting made in May 2019: