Being one of the oldest industries known to man, agriculture has shaped the future of societies across the globe. The truth is simple, without farming there will be no food. What we often take for granted as being readily available in our shops, has been carefully cultivated over time and with much perseverance. This very process comes with a myriad of challenges, increased input costs i.e. fuel and electricity, dependency on favourable weather conditions, and criminal activities.
Overcoming adversity has forced the industry to evolve by incorporating technology and new agricultural methods. Given the fact that only 12% of South Africa’s soil is suitable for rain fed crops, and only 3% considered truly fertile, it places great emphasis on the need for maximum return on investment. Only 69% of the land surface is suitable for grazing and rearing of livestock, which is the largest sector of the industry. South Africa’s population is growing at almost 2% per year. The population of 49 million in 2009 is expected to grow to 82 million by the year 2035. Food production or imports must more than double in order to feed the expanding population, whilst production needs to increase by the utilisation of the same or fewer natural resources. In addition, the demand for certain food types will shift as more people become wealthier.
Farming is capital intensive – just look at those big harvesters, tractors, pivots and the like. Protection of farming assets is therefore key to ensure sustainability and consistency of production. Insurance solutions that truly provide peace of mind to the farmer, are an integral component of the agricultural sector. Reviewing existing cover in order to keep abreast of advancements in technology, and how it affects risk, is crucial.
The ONE Agri Product caters for the specific needs of farmers and covers a wide array of assets for material loss as well as liability. Some of the features include:
Tailored insurance solution to meet individual needs i.e type of farming.
Personal & commercial assets may be insured under a single policy.
Specialised options available for farming equipment and irrigation systems such as a first loss cover for pivots.
Emergency fire extinguishing cost & burnt fodder extensions.
Cover for damaged tyres & tracks available for motorised farming equipment.