A countryside insurance broker has advised that growers’ insurance policies may not cover them sufficiently after increases in agricultural commodity prices.
Lycetts has urged UK growers to review their policies, after it found that many growers with billions of pounds’ worth of crops awaiting distribution do not have adequate cover.
The company said that with the value of crops such as peas and beans doubling in the past year, their concern is that farmers could be left out of pocket if a major incident such as a fire occurred before the crops are removed from the farm.
Rupert Wailes-Fairbairn, of Lycetts rural division, said: “Whilst these price rises are good news for growers, farmers should re-evaluate the sums insured of their crops to avoid potential under insurance should they need to make a claim - this could equate to 50% of current crop values. This is a big risk to take and a lot of money for any business to potentially lose.
“As a direct consequence of increasing extremes in weather patterns, we are finding that the number of fire and storm damage claims are rising. At a time when crop prices are at an all time high, it is crucial that farmers take the time to speak to their broker at regular intervals and adjust their cover accordingly to track commodity markets.”
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