Insurance increase: Grain growers run for crop cover this season

There has been an increase in grain growers taking up crop insurance this season. Here’s why.

Nervous wait: With hopes rising of a strong harvest, more grain growers are opting to take out insurance against possible losses. Picture: ZOE PHILLIPS

WITH a good cropping season anticipated for Victoria, there has been an increase of grain growers taking out crop insurance in pockets of the state.

The trend was revealed by Insurance House Victoria reg­ional manager Craig Sutton, who said this year, crops were generally looking good across the board.

“There has been an increase in Victoria in pockets,” Mr Sutton said.

More uptake was being seen in drought affected cropping regions, he said.

“Uptake has occurred in areas that didn’t have a good year last year,” he said.

“There has been more uptake in the northern Mallee and across the border in the Murray at areas such as Den­iliquin,” he said.

“There was drought there last year, but now it is looking like a strong year.”

Meanwhile NSW cropping regions, which have suffered through drought for the past few years, were also showing a significant increase in uptake this year, Mr Sutton said.

“A big difference this year compared to last has been shown in traditional grain growing regions in NSW,” he said.

“It has gone from none to all.”

Mr Sutton said standard crop insurance was mostly being taken out with the company.

“Covers (being taken out) are mostly for fire and hail,” he said.

Northern Wimmera grain grower Craig Henderson, who produces wheat, barley, canola, lentils and hay, said he once again took out insurance this year to help mitigate any risks.

“I took it out this year because it is looking to be a good year and we can’t afford to lose the crop,” he said.

“We don’t want a man- made drought.”

This year, average rainfall for the season has been just over 200mm for Mr Henderson.

“It was tough through winter,” he said.

“We got a bit of rain between August and September but it was below average.”

Last year, Mr Henderson’s season was well above average.

“This year we are looking to have slightly above average yields but with ordinary prices,” he said.

“We have always taken out insurance to mitigate risks.

“I know of people who have had farms spread out over 70km but the weather has still wiped out both farms.

“Even with having our properties spread out, all the risks aren’t taken out.”

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