Australian farmers and agricultural businesses face a wide range of risks, but they are particularly exposed to variability in climate. Drought and extended dry periods can result in a critical loss of crops and impact the livelihood of farmers and the financial viability of their businesses. Weather insurance is one aspect of how the negative impact of drought can be managed.
Fitton Insurance has over 30 years of experience providing drought and rainfall insurance. Based in Toowoomba, Queensland, we service farmers Australia-wide. Below, we explore drought mitigation strategies and the role of insurance.
Impact of Drought in Australia
Drought can be experienced by a large number of farms and agricultural businesses at one time in many different locations simultaneously. The systemic nature of this risk influences how it gets managed by businesses, industry, government and the insurance sector.
Farm insurance has become more important than ever for Australian agricultural businesses with expectations that risks will further increase with the changing climate.
How Farmers Can Help Mitigate Risk
Farmers can help limit the effects of drought through active management. In the cropping sector, for example, farmers reduce the crop area planted based on weather forecasts and reduce inputs such as fertiliser when drought conditions are likely.
Livestock farms prepare by holding stocks of grain and hay and reducing the herd size. Diversification can also help farmers reduce their risk exposure during drought. This includes engaging in a variety of crop and livestock activities or farming in multiple locations.
Weather Insurance Options
Weather insurance policies can cover a wide variety of weather-related events, with the coverage and terms of the policy depending on the particular product. Weather protection policies can protect against scenarios such as:
- Lack of rainfall reducing yield or destroying crops
- Extremely low temperatures causing frost damage to crops
- High temperatures impacting milk production and poultry production
- Excessive rainfall disrupting grain harvest or damaging fruit crops
- Strong winds destroying plantations
Weather and rainfall insurance can provide some peace of mind and financial protection against unpredictable, potentially devastating severe weather such as extended dry periods.
Specialists in Farm & Agriculture Insurance in Australia
Fitton Insurance can help you protect your Australian farm or agricultural business with insurance policies to suit a variety of different needs and circumstances. Get in touch with our team by calling 1800 076 277.
