| Arable
William Nicholl
Underinsurance warning for farmers,
after hot summer pushes up crop values
Farmers are being warned that they are running the risk of being underinsured, after the
sustained hot summer sparked a hike in crop values.
he value of wheat,
hay, straw, cereals,
and other arable
crops has soared
following months
of hot, dry
weather, prompting Lycetts to urge
farmers to check their insurance
cover is adequate, particularly
when it comes to crop storage.
For example, average hay and
straw prices have almost doubled
in some parts of the UK, yet many
T
policies only insure stacks up to
the value of £30,000.
Farmers can take steps, such as
splitting up stacks and ensuring
they are kept at least 20 metres
apart, but they also advised to
contact their insurance provider to
check they have the correct level
of cover.
William Nicholl, head of rural at
Lycetts, said: “This summer has
been a challenging one. The
adverse weather resulted in low
16 | Farming Monthly | September 2018
crop yields, which has inevitably
pushed up prices and affected
market values.
“With so much to deal with,
insurance may be the last thing on
farmers’ minds but it is even more
imperative that farmers are
adequately covered, given the
trying times.
“Some farmers may not be
aware that the increase in wheat
values, for example, means that
their grain store is holding a higher
value of wheat than in previous
years, which would have an
impact on the policy limit.
“And if a fire ripped through
underinsured hay stacks farmers
could face losing thousands of
pounds on a claim – with an even
keener blow being felt if the farmer
had to buy in or supplement the
crop in question, due to poor
harvests.”
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