Insurance concerns for farmers

FARMERS are facing substantial losses due to a failure to correctly allow for increases in the value of their property when insuring their business, it was claimed at the national ploughing championships in Annaharvey, Tullamore, Co Offaly.

FBD Director of Marketing and Sales Adrian Taheny said there is a growing trend of under-insurance in the farming industry and indicated that the costs to the industry were potentially massive.

“The substantial increase in farm construction in recent years, based on increased standards and the demands of regulation, has increased the value of many farm buildings.

“Failure to match the increase in value of such buildings with an increased insurance valuation will cause problems,” he said.

FBD said the issue is being exacerbated by the increase in the value of stored crops and feed.

Many farm enterprises are carrying large stocks of grain as part of their current business strategy. These holdings further increase the potential damage that could be caused by an accident.

FBD is estimating that many medium sized farms could be under-insured by as much as 50% when the value of buildings and storage are taken into account.

It said this level of exposure means that in the event of accidents many farms would struggle to rebuild their premises and replace their stores.