13 Nov A good year for fodder
A good year for fodder but are farmers adequately insured to reflect the increase in yields in 2019?
As we come into the winter housing and feeding season we look back on what was an exceptionally good year for grass production and happily, the haybarns and silage pits around the country are full in stark contrast to the severe fodder shortage that faced many farmers in 2018, brought about by an unprecedented drought that year. We are seeing cases where under insurance in respect of Hay & Straw is a recurring feature in the insurance claims that our office has handled for a number of Insurers following a farm fire. Packed haysheds are also contributing to an increase in reported self-ignition / self-heating (spontaneous combustion) and separation or the creation of breaks in the stacking arrangements is encouraged.
Minimum Sums Insured are proving to be inadequate in most cases resulting in a short-fall in partial losses (where the overall claim for farming produce is reduced proportionate to the level of under insurance, known as the Average Clause) or in a total loss, where the Sum Insured is exhausted, leaving a deficit that the farmer has to bear.
So the message is to increase your insurance cover to reflect the bumper yields this year to ensure the cover is adequate and a reminder that the level of cover should always be kept under careful review.