Following a season during which many farmers across the state suffered from frost damage and heavy rains, WAFarmers urges producers to consider options such as Multi Peril Crop Insurance (MPCI).
WAFarmers Chief Executive Officer Stephen Brown said recent weather events had affected crop yields and business income.
“The frost events experienced throughout the Wheatbelt, South West and Great Southern regions in August, September and early October have caused varying degrees of damage, with some farmers having had minimal frost damage, while others have suffered extensively,” he said.
“As harvest progresses across the state the true cost of the damage from weather events such as frost and recent heavy rains is now being realised.”
Mr Brown said WAFarmers was a strong advocate for the introduction of MPCI into the Australian agricultural sector.
“Western Australian weather can be incredibly varied and severe, so the importance of having insurance against weather events such as frosts and floods, or general income protection, cannot be overstated,” he said.
“Over the last three years, WAFarmers has invested considerable time and money attending and hosting industry events on MPCI as we believe this product, when fully matured and developed, has the potential to be the next big thing in agriculture, de-risking the operations of many farmers including grain growers and farmers in the fruit and vegetable industries.
“Variation in seasonal conditions gives many farmers a sense of riding the roller coaster, and are increasingly feeling the need for a de-risk strategy.
“Further, with wheat prices around $240 per tonne and barley prices even lower, the margins in farming are very tight, and weather events such as frost and rain have a significant impact on profitability.
“As business operators, farmers are aware of the risks in their business, and while WAFarmers acknowledges that MPCI is not for everyone, we believe that MPCI is a risk-minimisation tool that farmers and their advisors should explore.”
All media requests must be directed to WAFarmers Media and Communications Officer Melanie Dunn on (08) 9486 2100 or [email protected].