WIMMERA farmer Phil Koschitzke has received his multi-peril crop insurance (MPCI) payment from insurer Latevo International.
Mr Koschitzke said he was thrilled to see the product had delivered on its promises.
“We were always a bit worried, it almost seemed a little too good to be true, but it has come through and that is fantastic.
“It doesn’t mean we’ve had a good year, but it means the losses we’ve incurred are manageable, whereas without the coverage we’d be in a totally different position.”
Mr Koschitzke said the importance of MPCI on rural communities as a whole could be demonstrated through his personal case.
”The first thing I did once the Latevo cheque had cleared was to go into my local Tyrepower dealer and order four new tractor tyres,” Mr Koschitzke said.
“The big ticket primary production items of truck and tractor tyres are the backbone of his business.
“In times of poor production farmers budget by trimming expenses on ‘non-critical’ items, and tractor tyres are a good example of that, ‘they will do another season’ we evaluate,” Mr Koschitzke said.
“I need the tractor tyres, but there is no way I would have been completing that purchase without the MPCI payout, so it’s good for local businesses that rely on farmers to keep spending.”
Mr Koschitzke said the flow on effects then went through the volunteer groups that keep rural communities vibrant, such as the sporting and service clubs.
He said this year’s drought was horrific in his area.
“We had production a tenth of normal, but I told my bank manager when I met with him that I was expecting the MPCI payout to top up our income, making up for some of the lost production.
“He looked at the amount of refinancing I need, both with and without the payout, back and forth, finally focusing on the amount required if I didn’t have the MPCI.
“’Well that’s a conversation we are both happy to not be having’, he mused,” Mr Koschitzke said.