Five valid reasons to insure your crop with Santam’s Multi Peril Crop Insurance product

According to Schalk Schultz, manager: Business Development with Santam Agriculture, it is vital to compare the different offers before you take out insurance. “Make sure you know exactly what is covered and how your insured loss will be determined at the end of the day.”

Schultz is of the opinion that the following criteria can help you to make an informed decision.

1. As maize producer you earn your money from the cultivation and sales of maize. Therefore, it makes sense to choose an insurance product that protects your crop instead of only a few of the many factors that contribute to the final harvest. “It serves no purpose to be covered against a few events only, like ‘inadequate rainfall’ or ‘inadequate vegetative growth’. Even if one or both these factors are positive, it still does not guarantee a good harvest,” explains Schultz.

2. When the price of maize is to your advantage during production years when you experience a loss of output, you don’t want to share your profit with the insurer. “You most probably want to enjoy all the benefits of the maize price, not so? You prefer to be remunerated for your loss in yield at the maize price that you chose at the time you took out the insurance and for which you paid the premium,” says Schultz. Maize farmers don’t want their price benefit to be calculated against the loss in yield that they suffered in order to minimise the insurance claim.

3. You certainly want to enjoy cover against the difference between your own long-term average yield and the yield that you actualise at harvesting season, don’t you? According to Schultz do not want their individual insured loss to be calculated on the average maize yield of all the farmers in a specific area just because the insurer wants to avoid the cost of sending an assessor to calculate each individual loss on it’s own?

“You know from experience that there are huge differences in yield among the various maize fields on your farm. How much bigger would the difference not be between your harvest and that of other farmers in your area? For example, you and your nearest neighbour do not get the exact same amount of rainfall each season and you do not start planting on the same day. You also don’t use the same seeds, cultivation practicies and fertiliser programmes. Therefore, it is not realistic to expect that everyone in the same area will have the exact same yield per hectare in any given season,” says Schultz.

4. As maize producer, you use the best production tools that are available in the world. You also want to choose an insurance product that large numbers of commercial maize farmers all over the world use to protect their crop.
5. Lastly, you want to insure your crop with a South African insurer with a proven track record that has been built up over years.

Santam Agriculture’s Multi Risk insurance product for summer grain farmers meets all your needs. Contact Santam or your broker today.





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