Potato production is a risky business, but there are a growing number of strategies to combat the ever-growing lists of threat to the industry, according to this HortNews report.
GB Potatoes recently discussed risk in its “Cutting the odds: Managing risk in potato production” webinar. It heard from GB Potatoes chair Alex Godfrey, the CEO and President of Potatoes USA, Blair Richardson and Rory Gibson, Scottish regional director of insurance specialists Howden, who introduced new cover especially for growers.
Potatoes have always been a weather-sensitive crop, but with conditions becoming more volatile, protecting production is essential, argued Rory as he explained a new parametric protection policy for GB Potatoes members.
“We are seeing increasingly extreme and unpredictable weather patterns, while traditional insurers are becoming more risk‑averse,” he said. “Meanwhile, reduced farming subsidies and more uncertainty in crop returns mean protection is more important than ever.”
He explained that unlike traditional insurance that covers the risk of a peril such as fire, parametric insurance covers against a measurable event, such as 20 millimetres of rain.
Once a certain threshold is met payment can be made in as little as 24 hours and always within two months without the need for an assessor visit.
These thresholds are measured by satellite data and information from local weather centres. Rory said that potato policyholders will typically look to cover £5,000 per hectare of income. That would cost approximately £259/ha or just over £5/tonne. Typical payments are likely to be £2,273/ha for £1,554 of cover over five years.
During the webinar, Lincolnshire potato grower and GB Potatoes chair Alex Godfrey, demonstrated that the organisation is working to help growers and the wider industry to manage its risks.
Source: HortNews. Read the full story here
Image: Alex Godfrey. Credit HortNews | GB Potatoes
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