January 2012 Newsletter
Tuesday, 21 Feb, 2012
Wheat Insurance for the Coming Harvest 2010-2011...
UWG, in conjunction with FMG, set the insurance levy and disaster payout for the coming season at the 2011 UWG AGM held in May. The premium from the 1st February 2012 will be $4.35/tonne plus GST and the disaster payout will be $220/tonne plus GST. This is unchanged from last year.
Frost cover began on 15th November.
A Reminder of how the Scheme Works.....
The premium is paid in arrears and is based on the tonnage delivered, regardless of whether this is to a flour mill or any other end user. The end user deducts the levy from the payment and sends this on to UWG. However, if wheat is sold to a dairy or pig farmer who has not deducted the insurance levy, then it is the grower's legal responsibility to forward the current levy for every tonne sold on to UWG. This is a compulsory levy, not an optional levy and has been voted in by growers every 5 years since its inception in 1986. Growers are automatically in this scheme that provides disaster relief insurance for a fraction of the cost of commercial cover; however we rely on the premium from every tonne of wheat harvested.
The appropriate forms for paying the levy are available both online via the Foundation for Arable Research website (www.far.org.nz) or in paper form (obtained from the UWG secretarial office of Brown Glassford - ph: 03 3650-881/email: allison.brook@brownglass.co.nz).
Risks Not Covered...
Damage from wind like we experienced last year is not covered.
Spoiling in storage, typically in a large brand new silo.
The wheat would have been harvested at good moisture, but on a very hot day. No problems will develop if air flow allows the heat to be removed quickly and the silo is regularly checked.
Grain bags are not covered by our insurance.
In the past some growers have been upset by this policy. UWG has no issues with grain bags and realize they are in use around the world. They can be insured separately with your farm insurance provider.
For malting barley check with the end user before using these bags.
Risks Covered...
The major risks are hail, frost, fire, flooding, the water must flow onto the farm, physical loss in storage and transport.
This list is in greater detail on our website. www.uwg.co.nz
If you have a Disaster...
If a grower is unfortunate enough to have a disaster, they should register the claim with FMG by telephone 0800 366 466.
FMG will appoint an assessor. This person is a local grower, possibly a director or member of the Electoral Committee. The assessor will make an initial appointment to visit your crop and then subsequent visits to determine the loss.
New Director...
At our November Electoral Committee meeting Michael Morrow stood down as a director and was replaced by Guy Wigley who has been elected on to the board.
Thanks to Michael for the time he has spent on UWG both as a director and Electoral Committee member.
Help Wanted...
After the 2008/9 and 2009/10 hailstorms our assessors were stretched to beyond what is reasonable. There were over 100 claims both years and assessors were still looking at damage when their own crops were ready to harvest. Some had suffered serious damage themselves.
Unfortunately these events happen about every 5 years or so.
If we could have a bigger pool of grower / assessors to help out it would be great.
When we have a serious disaster, the assessors meet in an affected paddock, normally in the evening after tea, with the most experienced members demonstrating how they would tackle the job.
Newcomers generally go off with an experienced operator for a start and after a few paddocks the practical part becomes easier.
The most important qualification needed is for the assessor to be able to organize himself so they can leave their farm to help another grower.
Hiring commercial loss adjusters from the yellow pages is not an option.
Staying In Contact...
For the last 2 years we have sent the newsletter out by email via Federated Farmers Arable Update. We have had no comment that this is unsatisfactory but we do not know if it is being received either.
If growers could reply to Allison Brook at allison.brook@brownglassford.co.nz with their email address we can develop our own data base for future contact. You can also contact Allison to
Let us know if you are no longer a wheatgrower and can be taken off the database, as retired growers distort he voting percentages for the levy vote. At the same time, please let us know of any grower you may be aware of who is not currently on our database.
Wheat Competition...
The ATS UWG Wheat Competition is being run again this year. Entry forms will be available on both ATS and UWG websites. Contact Brian Leadley for further information.
The directors of UWG wish growers a successful safe harvest.
James Sim
Chairman UWG NZ Ltd