Farmers know all too well that a turn in the weather at the wrong time in the season or a natural disaster such as a drought can wipe out an entire crop. That is why insurance is of utmost importance.

As farmers brace themselves for the hot weather that El Niño will bring, Theo Potgieter from AFGRI gives some insight as to why crop insurance can help farmers who suffer losses due to a drought.

“We just came out of a La Niña, which was the wet conditions we’ve experienced the past three years. We are now going into an El Niño, which is dry conditions. It will definitely have a negative impact on the farmers’ crop production,” says Theo.

But there is insurance to cover this risk. There are two types of crop insurance.

“Hail insurance, as well as an extended hail insurance that you should look at. The normal hail policy will cover the direct consequences of hail on the farmer’s crop production, where the extended hail policy covers losses such as too dry or too wet conditions.

“The extended hail policy is much more expensive than a normal hail policy. Both these policies have a fire component to them. This means in the event of fires, such as those we’ve experienced in the past few months, farmers will be covered with policies such as these.”

Many small-scale farmers find it hard to spend money on insurance, but it is a must-have for any farming business.

“If you take out crop insurance you sleep better at night knowing your crops are covered against hail storms or fires you might experience. At least your dept will get paid at the end of the season and you might have money left to purchase seed to replant your crop,” says Theo.

“At AFGRI we have seen large commercial farmers as well as small-scale farmers who have taken out crop insurance, and if it wasn’t for that many a farmers would not have seen the next season. It helped them to recover their business to what it was before the damage.”

Theo says these farmers have also moved on to passing the legacy of taking out crop insurance to their children.

For more information, visit afgri.co.za