The rural insurance sector has been given a serious boost, after the Federal Government committed to giving farmers almost $30 million to seek insurance advice and assessments.
The Federal Government’s recently released agricultural white paper has stumped up $29.9 million over four years to improve insurance coverage of farmers.
The white paper singled insurance out as a way to significantly reduce the financial risks faced by farmers, and highlighted recent advances in the Australian crop insurance market.
“As the insurance market in Australia continues to mature, a greater range of commercial products is becoming available,” the white paper states.
“These include multi-peril and parametric insurance products, which can be used to manage drought and climate risk.
“An insurance policy delivers increased financial certainty for a farmer and can provide the confidence to make better on-farm decisions to maximise profitability.”
The white paper reports that it is the growing complexity of insurance products that makes farmers seeking advice so important.
The funding will be delivered in conjunction with the states and territories to give eligible farmers grants of up to $2500 for insurance advice and assessments, with dollar-for-dollar matching of funds by farmers.