With the cost-price squeeze in agriculture being worse than ever, farmers need to watch every rand in order to make a reasonable profit. So, while one could probably insure anything for its true value by paying a high enough premium, doing so might not be wise. What, in your opinion, should a farmer be insuring?
It’s 100% correct to note that anything can be insured if you’re prepared to part with enough money. But as a farmer you need to take a step back and decide whether an insurance quote is a fair reflection of the risk and whether it makes sense for you and your farm.
No two farming businesses are alike. Mechanisation, seed, management, and input costs are just some of the things that vary greatly from one farm to another. As a result, there isn’t simply one insurance recipe that works for everybody.
To begin with, as a farmer you should know your business like the back of your hand. The better you can describe your farm and its underlying risk to an insurance broker, the better he or she will be able to advise you on how to incorporate a sensible risk strategy into your business plan.
Remember, too, that insurance should be integral to your business, and not merely an add-on.
So where do you start if you want to insure your farm?
The first step is to understand your own risk. A young, healthy person with no medical history of illness can get away with less health insurance coverage than a sickly, middle-aged person who needs to support a family.
Equally, you need to understand your farming risk. As a rule of thumb, you should insure anything that threatens the survival of your business.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Syngenta Seedcare celebrates a decade of innovation
Syngenta's ambition is to enable their customers' investments to grow in healthy soil from treated seeds to young plants through innovation and collaboration, writes Magda du Toit.
Agri workers shine at Western Cape awards
Lindie-Alet van Staden, a garden and olive orchard manager at L’Ormarins Wine Estate in Franschhoek, was crowned as the Western Cape Prestige Agri-Worker of 2024 at a gala event recently held near Paarl.
Small and large farmers recognised at grain awards
The annual Grain SA/Syngenta awards ceremony bears testimony to the quality of farmers in the grain industry.
Growing partnerships: Fedgroup's flexible and innovative approach
Janine Ryan spoke to Warren Winchester, general manager of impact investing at Fedgroup, about why the company became involved in agriculture, and what it offers farmers and their immediate communities.
Why fish farms fail, and how to avoid becoming a statistic
The popularity of launching fish farms is not matched by their success. Leslie Ter Morshuizen, owner of Aquaculture Solutions, explores the factors that cause most of these businesses to go under.
Where history and modernity meet in a luxurious setting
Brian Berkman kept his eyes peeled for ghosts in the oldest continuously run hotel in South Africa, but all he found was a fabulous two-night stay.
THE HITCHING POST
I'm a stylish elderly lady with a radiant glow and a good sense of humour that keeps me young at heart.
Cutworms: check the weeds on your fields!
Zunel van Eeden explains why understanding the ecological interplay between cutworms and weeds is crucial for effective pest management. Producers should disrupt the life cycle of cutworms to minimise crop damage.
Does high-density grazing mimic grazing patterns of game?
In their paper on high-density grazing in Southern Africa, professors Angelinus Franke and Elmarie Kotzé from the Department of Soil, Crop and Climate Sciences at the University of the Free State say high-density grazing systems may not accurately reflect natural ecosystems. Roelof Bezuidenhout reports.
Global grain outlook: 2024/25 marketing season
In its latest summer crops report, the Crop Estimates Committee says South African farmers intend to plant 4,47 million hectares of summer grains and oilseeds in the 2024/25 season, up 1% from the previous season. As South Africa exports maize and soya bean, Annelie Coleman reports on the latest trends in the international grain and oilseed markets, amid fluctuations in weather conditions and ongoing armed conflicts.
