FMG campaign aims to safeguard dairy farmers

4 May 2006

FMG campaign aims to safeguard dairy farmers

New Zealand rural insurer FMG has launched a campaign to ensure dairy farmers are aware of, and protected from, the risks associated with farming.

“Winter is a busy time of year – and a time when dairy farmers’ livelihoods can be most at risk,” said FMG General Insurance Manager Bill Montgomery.

Traditionally many dairy farmers are on the move on 1 June, with either farm ownership changing or stock moving from farm to farm. Insurance premiums often fall due at this time of the year - and FMG is urging farmers to do more than simply renew them.

“As New Zealand’s leading insurer to the dairy sector we understand all about the bottom line in terms of dairy farming. But our experience indicates many farmers may be under insured – and not realise it. So this campaign aims to encourage farmers to take a longer look at their policies,” said Mr Montgomery.

The three-month campaign features print advertisements alerting farmers of threats to their livelihoods caused by mishaps such as destroyed fences and contaminated milk tanks.

“A comprehensive dairy farm insurance package should cover all areas – from public liability protection if your stock escapes to covering losses incurred by milk spoilage. An average milk spoilage claim costs $1,500 – yet it’s an area that can be overlooked by farmers taking out insurance.”

Mr Montgomery said loss of profit cover was also important, citing a case last year when two Taranaki farmers experienced a switchboard electrical fire in their milking shed, causing around $120,000 worth of damage but the loss of profits from the milking shed not operating was uninsured.

“They had some cover but with loss of profit cover the impact could have been minimised,” he said.

ENDS

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