Insurance touted as answer to snow losses
Farmers who suffered exceptional losses in last winter’s heavy snow may be asked to insure their businesses against future severe weather events.
The proposal has emerged following a Welsh government-commissioned review into the resilience of Wales’ livestock industry, which was ordered after thousands of sheep died in snowdrifts.
Wales’ farming minister Alun Davies announced on Friday (19 Juy) that a key recommendation that had emerged from the review focused on the industry working with insurance companies to explore the potential for “catastrophe cover” for significant losses.
Mr Davies reckons this approach is preferable to taxpayer-funded emergency grants after an “incident or episode” has taken place.
Former NFU director general Kevin Roberts, who led the review on behalf of the Welsh government, made the recommendation.
Mr Roberts also recommended that a plan needed to be put in place to deliver the required response if the industry is faced with a similar threat in future.
The so-called Contingency Management Plan will be developed in partnership with the farming industry’s stakeholders across Wales.
Mr Davies pointed out that had the severe weather been an outbreak of animal disease, or another pan-Wales emergency, well established procedures would have been triggered but similar arrangements do not exist for localised, weather-related situations.
A generic Contingency Management Plan would resolve this.
“This plan will also ensure that we get the correct and timely intelligence in order to provide an appropriate and measured response to a developing or changing situation,” said Mr Davies. “I believe it is important moving forward that there is a consistent approach to how these events and guidance is delivered across Wales.”
Although Mr Davies faced criticism that the measures he put in place in response to the severe weather were inadequate, Mr Roberts’ review found that the intervention was “appropriate”.
The review is ongoing and a final report will be published in November.