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MULTI PERIL CROP INSURANCE PAPER DESIGNED TO FAIL

Story Added : 02nd July 2009

The WAFarmers Grains Council’s Sustaining Future Farming sub-committee has expressed its disappointment at the Multi Peril Crop Insurance (MPCI) Discussion Paper released by the Department of Agriculture and Food WA (DAFWA) on July 2, 2009.

Sustaining Future Farming Committee Chairman and Nyabing producer, Scott Crosby, said he believed the Paper is too focused on the reasons why a MPCI model would not work, rather than exploring the reasons why it could.
“It does not appear that DAFWA has accurately factored in the actual costs to growers, nor any long-term consequences of a MPCI model.”

The Minister for Agriculture and Food, Terry Redman, notes that volume would be required to establish an effective MPCI model and that it must be industry funded and driven. The Sustaining Future Farming Committee agrees with this sentiment in the medium to long-term, however State and Federal funding is required in the initial set-up stages.

“A number of studies conducted in the past have found that without Government funding to establish a MPCI model, it is difficult for it to get started. But let’s be clear, the Government funding required would have a definite time-frame.”

“Once self-sustaining, farmers would be better equipped to manage production risks, without the need for further Government funding. This would be a win-win situation for all,” said Mr Crosby.

Currently there is a Federal budget allocation of $561.7 million for Exceptional Circumstances over the next three years.

Mr Crosby noted that the Sustaining Future Farming Committee views MPCI as a valid alternative to the significant Exceptional Circumstances funding.
“It is inconceivable that Governments would not consider an alternative option, which, over time, would clearly indicate the sustainability of a primary industry business enterprise.”

“There is a real opportunity to take a different approach to the long-term sustainability of farms, and the lack of interest by the State Government in the concept is both frustrating and confusing.

“Farmers would not keep pushing for the State Government to revisit MPCI if they did not think it was in their best interests.

“The State Government needs to get serious about determining if a MPCI model would work and the only way they can do this is by funding a thorough case-study scenario using ‘in-field’ data as opposed to ‘office’ data.
“Until this occurs, the Sustaining Future Farming Committee will continue lobbying for models that reduce long-term reliance on Government funding, ensuring the best future for the State’s farmers and the economy,” concluded Mr Crosby.

Source; WAFarmers