Posted on: 9 February 2022
If you want to open up a large farm to produce various crops or grains using an extensive parcel of land, you need to assess your risks alongside your opportunities. Unfortunately, you need to consider some significant threats associated with this type of broadacre farming, but the good news is that there is a specific insurance product that could come to your defence. Why do you need to take this into account and get a proposal in place?
Assessing Your Vulnerability
Due to their very nature, broadacre farms are vulnerable to a wide range of naturally occurring and other perils. When fully up and running and in season, the owner of a large farm like this will have enormous exposure and will often be at the mercy of outside forces. Should the worst happen, they could lose their entire crop after spending all their resources on development. Such losses could be catastrophic and be very difficult to recover from without some form of coverage. After all, the yield may be slashed, leading to massive revenue loss and disruption.
For these very reasons, the insurance industry introduced a product known as "multi-peril crop insurance." Coverage will vary from provider to provider, but many will cover all types of threats imaginable to give the owner as much peace of mind as possible.
For example, consider what would happen if your farm was overtaken by a plague of locusts or other destructive insects. What if your crops were affected by an airborne disease or threat that originated in the soil? Once again, this would be completely beyond your control, and you would have to sit back and watch your crops wither and die.
There's been much talk about climate change lately, and Australia is certainly home to some freak weather events. You'll want to protect your crops against excessive heat, too much or too little rainfall and even threats associated with large hailstones or an elongated frost. Also, wildfires are an ever-present hazard across the country, and you should talk with your broker about appropriate coverage.
Tailoring a Quote
This type of coverage is relatively new in the marketplace, so you will need to do your research. As you can expect the cost to vary depending on the number of perils covered, the type of crop and the size of your undertaking, you should talk with a broker to get their input before work gets underway.
Contact an insurance company for more information about rural insurance coverage.Share