Fighting the catastrophic impact of frost

Fighting the catastrophic impact of frost

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Sponsored content: The CSIRO estimate losses from frost events in broadacre agriculture to be between $120 - $700 million per year and the prevalence of it is increasing.

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Story sponsored by AWB Cargill.

Frost inflicts significantly more devastation on Australian crops than fire and hail.

The CSIRO estimate losses from frost events in broadacre agriculture to be between $120 - $700 million per year.

This far exceeds the annual loss insurance companies estimate from fire and hail which is around $80 - $120 million every year.

What is concerning is that the prevalence of frost is increasing. The CSIRO is suggesting the frost window has broadened by as much as 40 days in southern NSW.

This is due to a long term southerly shift in position and intensification of the band of high pressure typically located over central Australia in spring.

This is combined with quicker phenology due to flowering and maturity occurring at a rate of seven days earlier per 1oC of warming will potentially increase the risk of frost damage.

The financial impact on the sector is also far greater for frost than fire and hail. In fact, we estimate that the impact of frost on the sector is on average around four times that of fire and hail.

While hail and fire insurance has been a common risk transfer solution for growers over the years, insurance against frost has been less common and typically some insurers include as part of an extensive multi-peril policy which covers perils often not relevant to individual broad acre enterprises yet increases premiums significantly.

This year, AWB launched a new broad acre insurance policy that includes Frost,Hail and Fire. This enables grain growers to insure for the catastrophic impact of frost for wheat, barley and canola on their property using a familiar policy and process without paying for perils that are not relevant to their business.

Additional benefits include the standard Hail and Fire inclusions for Baled Hay, Harvested Grain in storage or transit, Chemical Overspray and Fire Mitigation.

Due to the significant financial impact of frost and the increasing prevalence, premiums for frost are typically higher than for fire and hail based on its higher occurrence, which gets reflected in the rate.

Rates are determined based the specific location of the farm and the crop types planted. Adjustments to the premiums can be made by reducing the level of cover selected or increasing the excess.

Quotes for 2019 Frost, Hail and Fire and the add-on endorsement of Crop Establishment Failure on your 2020 planted crop are easily obtained from your local AWB Representative or visiting www.awb.com.au/protect and requesting a call back.

  • Estimates attributed to the CSIRO are contained in CSIRO report frost estimates 2016 CSIRO report

Story sponsored by AWB Cargill.

The story Fighting the catastrophic impact of frost first appeared on Stock & Land.

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