Broadacre Crop Insurance cover is vital for any cropping operation. In 2021-2022 the crop season experienced higher yields and increased market values. This resulted in insurance capacity shortages within some regional shires.
With the 2021-2022 winter crop the highest yield on record, this placed pressure on crop insurer capacity. This has highlighted the need for farms to place crop insurance cover early.
90% of broadacre crop insurance claims are due to hail and with the increase in weather volatility and input prices, these risk factors need to be considered when reviewing the need for crop insurance for your farm.
When Should You Purchase Crop Insurance
We would encourage our customers not to rely on Automatic Temporary Cover from last seasons policy. It is important to arrange a new policy early in the season for your crop insurance program. Insurance cover placed early will ensure you take advantage of competitive crop insurance rates before the insurer capacity runs out within respective shires. Once the insurer shire capacity is reached, you are likely to incur higher premium rates difficulty in placing cover.
Arranging cover early in the season will ensure a competitive rate with no premium cost due until after harvest.
We are able to provide “Pre- Harvest” and “Post-Harvest” schemes and our dedicated crop insurance specialists will provide you with a full comprehensive market review from all major crop insurers.
We can also offer ways you can reduce your rate by considering different excess amounts, fixing values or combinations of options.
What is Broadacre Crop Insurance
Broadacre Crop Insurance is designed to cover crops from emergence through to harvest, including grain in storage and during transit. The policy will provide cover for a loss of potential yield due to hail or fire. Weather Index Crop Insurance can also be utilised to cover against extreme weather events such as adverse temperature and rainfall.
What types of crops can be insured
Crop insurance cover is available for all cereal, pulse and legume crops. The most common crops insured include wheat, barley, chickpeas, canola, sorghum and sunflowers.
Pre Harvest Crop Cover
What is Pre Harvest Crop Insurance
A Pre Harvest crop insurance policy is finalised at the insurers set Final Revision Date (FRD). The sum insured and premium are calculated based on your estimate of the crop yield and your nominated insured value per tonne at this time.
Advantages of Pre Harvest Crop Insurance
A Pre Harvest policy is a good options if you want to finalise your crop cover at the Final Revision Date. The downside of a Pre Harvest policy is that the final premium is calculated on the estimated yield and may not reflect your actual harvested yield. This option could be more likely to leave you over or underinsured which will impact the final premium.
Post Harvest Crop Cover
What is Post Harvest Crop Insurance
A Post Harvest crop insurance policy is finalised after harvest based on a yield declaration and your nominated insured value per tonne.
Advantages of Post Harvest Crop Insurance
A Post Harvest policy is a good option if you are worried about the accuracy of your revised insured yield at the Final Revision Date. Crop an be impacted by a variety of perils after that time which will impact on the harvested yield. You will also be required to complete an after harvest yield declaration and pay a premium that may be better reflect the harvested yield.
Post Harvest vs Pre Harvest Crop Insurance
The Post-Harvest policy responds better to yield variation incurred after the Final Revision Date, automatically adjusting the sum insured and providing a more accurate claim payment.
A Post-Harvest policy can be more expensive than a Pre-Harvest policy. It also usually requires some additional paperwork, however it does provide better coverage as it more accurately reflects the season you had, not the potential season.
Crop Insurance Additional Benefits
Most crop insurers will provide additional policy benefits, however these can vary between insurers and it’s important to deal with a farm insurance broker who understands your cropping insurance requirements.
These additional benefits can include;
- Chemical overspray
- Livestock intrusion
- Transit cover for grain/baled hay -fire, impact, collision and overturning of vehicle
- Harvested crops (grain) stored in a silo or enclosed building – fire & perils
- Harvested crops (grain) stored in silo bags or temporary field bins – fire only
- Baled hay from harvested crops – fire only
- Claim mitigation expenses (Inc. costs of replanting)
- Fire-fighting expenses
Crop Insurance Proposal
Agripro Insurance Brokers have access to Australia’s largest crop insurers and industry leading expertise
To arrange cover for your Crop Insurance requirements, simply complete and return our Crop Insurance Proposal.