Wheat insurance scheme signed

Press, 29 August 1980, Page 18

Wheat insurance scheme signed

This photograph was taken this week on the occasion of the signing of the new wheat insurance scheme.

On the left is Mr T. G. McNab, chairman of the board of the Farmers Mutual Insurance Group, and w'ith him Mr A. L. Mulholland, chairman of United Wheatgrowers (N.Z.), Ltd, who-were the chief signatories. Witnesses were Mr J. D. Wilde, general manager of the company, and Mr N. Q. Wright, the chairman of the Dominion agriculture section of Federated Farmers. The new scheme replaces the wheatgrowers’ compensation scheme previously administered by the Wheat Board. It is expected that the passing of air amendment to' the Wheat Board Act, 1965, in October will enable the new scheme to be implemented on November 1. It will provide for growers paying a levy to finance the scheme.

Under the new arrangement 80 per cent of the loss suffered through hail, wind, snow, frost, flood and wandering stock will be covered. The old scheme only covered frost, hail and flood. The cover for fire while the crop is growing and for grain following harvest will be 100 per cent of the loss.

There is also a resowing cover where the damage occurs to a crop before November 1. This cover is for seed, the preparation of the ground and getting the crop back into the ground.' Under the new scheme the grower will have to foot, the first $250 of a claim, except in the case of fire and theft. The old scheme resulted in a grower receiving two thirds of the loss covered by the scheme, but he had to first. stand a third of the value of his crop. Speaking at a function after the signing Mr Mulholland emphasised that the scheme involved farmers helping them-

selves. Mr ' Wright and also Mr Wilde saw a similar type of scheme being adapted for other crops, and Mr Wilde mentioned in particular the horticulture industry. Mr McNab recalled that

his organisation, which was working for farmers, had been established by farmers who were doing something for themselves and even initially paying claims out of their own pockets.