Risk planning is critical to ensure future of farm
The recent spate of extreme whether has caused many to consider their plans and investment in risk mitigation, with both citizens and businesses thinking about what they can do to protect against, or at least minimise, the damage caused by these increasingly inevitable events, which at the start of the year were ranked by the World Economic Forum as the most likely environmental global risk in 2014.
We spoke to Michael Doyle, head of agri business for Zurich Insurance, to get some perspective on just how bad the recent weather has been, and to get advice on how farmers can protect their assets against future storms.
Extreme weather is indiscriminate: everyone is a potential victim. However some, including the farming community, are more vulnerable to the consequences of Mother Nature’s wrath because their livelihoods depend on it. Gale force winds have battered farm buildings across the country in recent weeks, with weaker or older structures being badly affected. Livestock has also been impacted, with adverse weather conditions leaving cattle vulnerable to injury and stress-related illness.
Just last week, Met Éireann highlighted the severity of the weather experienced in the winter of 2013-14, confirming it as the wettest on record. This follows records of winds as high as 158km/h and an astonishing 848mm of rain from December to February in some parts of the country — presenting farmers with significant and ongoing challenges.
Many farmers are simply not prepared to deal with this type of crisis and have not put in place adequate
measures to protect themselves and their farms. Yet, when it comes to response and recovery, it is those who prepare for the worst that will rebound the quickest.
If the recent wild and wet weather have proven anything, it is that risk mitigation should be the centrepiece of every farmer’s business and operations plans. Taking some precautions now could be vital to minimising your farm’s exposure to damage caused by extreme weather, whilst also reducing the likelihood of a claim which could increase your insurance premium. What’s more, if farmers can show their insurer that they are committed to implementing certain precautions and procedures to protect their businesses, it is proven that they will reap the benefits each year at renewal time.
It’s the simple steps which are often overlooked, such as ensuring that farm buildings are maintained and in good order throughout the year. Carrying out necessary repairs to roofing, walls and doorways, for example, can have a significant and positive impact on premiums.
Proactive farmers who implement good standards of management, housekeeping and property maintenance will be able to reduce the level of damage to their business, get back to their day-to-day operations as quickly as possible and most importantly, protect their bottom line.
Even with the best laid plans, farm damage due to extreme weather is sudden and can be extensive, which begs the question: what can farmers do to protect their property and livestock when disaster does strike? In the first instance, it is essential to prioritise any repairs so as to keep your business up and running. For example, buildings used to store fodder and livestock should be repaired as a matter of urgency.
Only suitably qualified persons should carry out essential restoration. Your insurance provider can to provide you with details of recommended farm building repair specialists in your area.
With regard to livestock, you should ensure that animals have a reliable water source at all times. During extremely cold weather, this can be achieved by fitting exposed water pipes with insulation to prevent freezing. You should also identify emergency water sources such as mobile tankers and consider co-operating with neighbours to ensure cattle remain hydrated at all times.
Following an extreme weather event on your farm, it is also advisable to monitor livestock closely for any unusual behaviour or signs of stress, injury or illness as animals may have been exposed to sub-zero temperatures, freezing winds, or have been struck by loose building materials or debris. Outside of prioritising any emergency repairs and ensuring the health and safety of your livestock, one of the most important things that you can do is to take clear photographic evidence of any damage caused, as it will assist your insurance provider in dealing swiftly with a claim. However, ensure that you take great care when assessing damaged farm buildings as they may be dangerous to enter or vulnerable to collapse.
One thing is for certain, extreme weather conditions are becoming an everyday occurrence which many of us will have to deal with in some shape or form, but this does not mean farmers can’t plan ahead. By making risk planning a part of your day-to-day operations and working with your farm insurance provider you can take proactive steps towards limiting risk to your farm and protecting your livelihood whilst reaping the benefits of this planning each year when you renew.
