Dear Readers,

Please find below videos from a non-exhaustive list of countries where Livestock Drought or Index Insurance programs have or are operating:

Kenya:

A 1:30 second video from the Kenya Livestock Drought Insurance program referencing the involvement of 7 Insurers and the Kenyan Government:

Mongolia:

A 2:30 second video of the Livestock Index Insurance program in Mongolia from 2015;

Mexico:

No videos available however 2 article links – note reference to the Mexican Government providing 100% subsidy

USA:
Not an insurance program however an interesting 2 minute video from US news featuring Drought effected Australian Cattle:

IBLI:

This video provides an understanding of Index Based Livestock Insurance (IBLI) – its duration is 55 minutes
At the 24 minute mark ‘index’ insurance is explained by Professor Chris Barrett

For further videos on Livestock Drought Insurance please find our dedicated Livestock Drought Insurance YouTube channel as follows:

Index based solutions are not the only solution.

OBA Consulting proposed a Mutual / Captive suggestion to the Government in June of 2019 as follows – no response received:

From: admin@obaconsulting.com.au
Sent: Wednesday, 5 June 2019 11:22 AM
To: minister@agriculture.gov.au; senator.mckenzie@aph.gov.au; NQLIRA@pmc.gov.au
Subject: Livestock Risk Transfer – Risk Captive / Discretionary Mutua

Hi David, Bridget & Shane,

Notwithstanding in my original correspondence to Hon Scott Morrison, attached, I suggested the Govt replicate this: http://nqhomeinsurance.gov.au/ for cattle which shortly thereafter the Govt released: https://pmc.gov.au/resource-centre/domestic-policy/north-queensland-livestock-industry-recovery-agency-hon-shane-stone-ac-qc

Today I’m suggesting the Govt set up a Govt Captive / Discretionary Mutual like it did for Terrorism for Livestock loss: https://arpc.gov.au/

I was an insurance broker when the Government set this up in 2002.

It has a lot of merit.

The NQLIRA only addresses Queensland – as I have stated several times a solution is required that addresses Australian Farmers nationally:

The establishment of a Discretionally Mutual similar to the ARPC would be a very sound step and I would be happy to be involved in establishing it.

It is worth noting:

Australia is 1 of only 5 countries that have more cattle than people: here

*Head numbers have reduced from 27,000,000 – circa 8% drop – 25,000,000 head is the lowest number since the 1990’s

Related items at a glance:

Fiona Simson NFF President:

From Sky News December 2019:

NB: OBA Consulting funding applications submitted to The Government, Meat & Livestock Australia, select General Insurers &
The Insurance Council of Australia (ICA) have all been declined.

Sent: Friday, 5 July 2019

Dear Mr O’Brien

Thank you for taking the time to apply for the National Landcare Program: Smart Farming Partnerships Round 2 grant round, which closed on 17 May 2019 at 11.00 pm AEST.

Applications received under the National Landcare Program: Smart Farming Partnerships grant opportunity were reviewed in accordance with the eligibility requirements stated in the Grant Opportunity Guidelines (GOG).

The GOG states at Section 3.2. Eligible consortium partnerships and knowledge partners:

While there are restrictions on who is eligible to apply as an applicant on behalf of a consortium partnership, these restrictions do not constrain the membership of a consortium. However, to strengthen the link between innovation and sustainable resource management practice, the consortium partnership must include one or more ‘knowledge partners’ (sources, repositories or brokers of knowledge about innovation, natural resource management or sustainable agriculture) from any of the following groups of organisations:

  • Australian universities
  • Regional Land Partnerships service providers to the National Landcare Program (NLP)
  • Rural Research and Development Corporations
  • Commonwealth, state or territory government agencies.

Your application did not meet the eligibility requirements outlined above and has been deemed not eligible.