What insurance covers do Australian crop growers need to protect their assets?

Australian crop growers face a myriad of risks that can significantly impact their livelihood.

From unpredictable weather events to the ever-looming threat of contamination or pests, the risks are numerous. It means risk management and comprehensive insurance protection is a necessity to protect expensive infrastructure and machinery.

Peter Morsley, ARGIS’s Farm Underwriting Manager says understanding the unique risks faced by crop growers is key to providing effective insurance solutions.

So, what are the key risks for infrastructure and key assets?

Understanding crop risks and how to mitigate them

1. Knowing your fire risks

Australian farmers will be all-too familiar with the threat of fire, and crop growers are among the most vulnerable to its effects.

“The stakes are high, with valuable crops and machinery such as harvesters and headers at risk.” Peter says. “If these machines are not maintained properly and cleaned regularly, they can become fire ignition sources. Debris buildup and mechanical faults can easily spark fires, especially during the dry season when conditions are most hazardous.”

Brokers should encourage their clients to conduct regular inspections, thorough cleaning, and timely repairs of farming machinery. These actions are essential to ensure that equipment does not inadvertently start a blaze. Compliance with state fire regulations is also imperative.

2. Weather events and reducing the impact

From storms to floods, the unpredictability of weather events can disrupt farming operations overnight. Farmers can lessen the impact of these events by adopting proactive measures such as:

● Regularly inspect buildings and infrastructure to identify vulnerabilities and undertake necessary maintenance.

● Secure loose equipment to minimise the likelihood of damage from flying objects during extreme weather conditions.

By implementing these risk mitigation strategies, farmers can help minimise the damage weather can cause to property and prevent unnecessary interruptions to their operations.

3. Maintaining hay standards to mitigate against preventable fire

Failed crops often find a second life as hay, but improper baling techniques or inadequate moisture levels can turn this valuable resource into a hazard.

The risk of spontaneous combustion is high when hay is not prepared, stored, and maintained appropriately, posing a significant threat to both crops and infrastructure.

To mitigate this risk, farmers need to follow proper baling processes. By promoting best practices and emphasising the importance of moisture control, growers can minimise the likelihood of hay fires and protect against an often-preventable disaster.

4. Understanding Liability with Crop Spraying and Harvesting

ARGIS encourages farmers to avoid inadvertently affecting neighbouring properties when it comes to spraying crops. Farmers should assess the weather conditions (mainly wind speed and direction) and only conduct spraying when there is no risk of drift onto neighbouring properties. Spray drift onto neighbouring properties can adversely affect crops and the farmer could face expensive repercussions.

During harvesting, the fire risk can increase due to poorly cleaned harvesters or crop storage. Growers should be aware that where an accidental fire starts on their property and spreads to other properties, liability would likely fall on them.

“We encourage farmers to invest in fire prevention equipment, ensuring it is easily accessible and that adequate water sources are present, as well as providing training for personnel handling machinery.” says Peter.

Tailoring ARGIS Farm Extra Insurance to your farming clients’ needs

Peter emphasises the comprehensive nature of ARGIS’s insurance solutions.

“From goods in transit coverage, to farming interruption and contents insurance, we offer to arrange your clients’ tailored policies designed to safeguard every aspect of their crop farming business.”

He says: “Our goal is to arrange cover which provides security and support to crop growers, from harvesting fruits and vegetables, or sowing crops like cotton, ARGIS Farm Extra Insurance allows farmers to focus on their core activities.”

ARGIS is committed to providing tailored insurance solutions that address the unique needs of regional crop growers. With competitive pricing, dedicated service, and simplified processes, we assist growers to focus on what they do best: cultivating the land and feeding the nation.

Contact us on 1300 794 364 today to discuss insurance solutions tailored to your client’s farming activities.

The cover is subject to terms and conditions, limits and exclusions of the policy. Any information provided above is general advice only and has been prepared without taking into account your objectives, financial situation or needs. SGUAS Pty Ltd t/as ARGIS Insurance (ARGIS) acts for the insurer, Pacific International Insurance Pty Limited (Pacific). Consider the Product Disclosure Statement and Target Market Determination, available by contacting ARGIS on 1300 794 364 or visiting www.argis.com.au, before deciding if it is right for your client.