Feedback sought on multi-peril crop insurance for NSW

The Independent Pricing and Regulatory Tribunal (IPART) NSW is seeking feedback on its draft finding that government measures to support the uptake of multi-peril crop insurance could play a role increasing crop farmers’ self-reliance during droughts, but are unlikely to displace other government drought assistance.

The draft report of the review of multi-peril crop insurance incentive measures, released this week for feedback, assesses some elements of the NSW Drought Strategy, which aims to support farmers to become more resilient and better prepared for drought, and to reduce their reliance on government drought assistance.

IPART Chairman Dr Peter Boxall said of the five incentives assessed, the proposed upfront premium subsidy was most likely to help meet its objective of increasing the uptake of multi-peril crop insurance.

“Our draft finding is that while providing an upfront subsidy could increase the take-up of insurance, it would not reduce reliance on government assistance programs. This is because
insurance is unlikely to be offered at affordable premiums during periods of drought, and because currently the main recipient of Government farming assistance is the livestock
sector, which is not covered by multi-peril crop insurance,” Dr Boxall said.

Feedback is being sought on the draft findings before a final report is provided to the NSW Government in October. NIBA members can send their comment and feedback on the issues raised in the draft report to NIBA CEO Dallas Booth (dbooth@niba.com.au) by 8 August 2016.