What is Crop Insurance?

If you’re a crop producer, you’re well aware of how harsh Australia’s conditions are, with a variety of environmental hazards that can wipe out a portion or all of your hard work in one event. 

Whether it’s edible or industrial, you need an insurance solution to suit your crop, region and the particular perils that can impact you.


What does Crop Insurance actually cover?

A Crop policy is designed to protect you for financial loss in the event of Hail and Fire (or one or the other) impacting your crop. Policies often include (as either optional or additional cover), things like chemical overspray and livestock intrusion (or straying stock), as well as your harvested crop or hay while in silage (if not covered more fully under your farm policy).

Crop Insurance is categorised as either viticulture or broadacre, and can be taken as pre-harvest revision which is based on a fixed sum insured and value, or post-harvest via declaration which more accurately reflects your actual yield, with each offering different benefits to farmers depending on budget or operational preference.


What types of Crops can be covered?

The majority of broadacre winter and summer crops including sugarcane, can be covered under a Pre-harvest or Post-harvest cover, with rates varying from insurer to insurer.

There are also policies specific to viticulture and horticultural crops, industrial crops like cotton or sugar and even policies to cover commercial plantations.


Why do I need to insure my crop?

Considering the unpredictable nature of our weather in Australia, it is important to protect agricultural income as each year can be different from the last. There is little in the way of industry or government financial support for farmers, so it falls on each to ensure they protect their income and sustain the various industries together. 

With all the pressures our agricultural industry faces, covering yourself in the event of catastrophic loss is a no-brainer. Working with an experienced broker who understands crop insurance and market, is important to getting this valuable piece of your business insurance right.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Laura Meyer, MeyerInsure, AFSL : 233750 , AR Number: 1284200,

This article originally appeared on MeyerInsure - Blog and has been published here with permission.

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