Protecting against damage from frost

Protecting against damage from frost


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Farm businesses who experience catastrophic impacts on revenue are left financially vulnerable unless they can find ways of reducing exposure to the risk.

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Advertiser Content for AWB Cargill.

A survey of Australian grain growers asked which weather risk would have the most catastrophic impact on revenue for their cropping business.

While drought unsurprisingly topped the list, frost was close behind as having the next most catastrophic impact on revenue. Farm businesses who experience catastrophic impacts on revenue are left financially vulnerable unless they can find ways of reducing exposure to the risk.

But what can be done to manage the impact of frost? There has been significant effort from groups like GRDC over past years to prescribe some production techniques that can mitigate the severity of frost damage, however, it is difficult to completely control this risk.

According to AWB's insurance expert, Andrew Gregor, another way to effectively mitigate some of this risk is to transfer it to someone else through an insurance product.

Unfortunately, few insurance policies specify frost coverage or it is included in expensive multi-peril insurance product that covers a broad range of perils.

This year, AWB is offering insurance for frost as part of a new Frost, Fire and Hail product.

The Frost, Fire and Hail product covers for catastrophic impacts of frost on the major broadacre crops of wheat, canola and barely planted on a property.

According to Andrew, the premium for the Frost, Fire and Hail product will vary depending on the area and how frost prone it is.

"The easiest way to determine if the policy is right for you is to get a quote. It is free and relatively quick to do, it is the same process as your Hail and Fire"

"Once you have a quote you can determine the cost of transferring the risk and protecting your revenue stream, "he said.

Quoting on the Frost, Fire and Hail Insurance product is only available until July 31, 2019.

For more information phone 1800 447 246 or visit www.awb.com.au/protect

Advertiser Content for AWB Cargill.

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