FMG News

Farming Loss of Profits

As part of our commitment to the rural community, FMG is concerned about the number of farming operations that do not have Farming Loss of Profits insurance*. This is an optional insurance cover that you can purchase from FMG.

If you have not considered the ramifications of a major interruption to your farming operation we believe you should do so as an essential part of your risk management programme. A farm business suffering loss or damage to its material assets (farm buildings or farm contents) can also suffer consequential loss.

If, for example, your farm buildings including your dairy shed or farm contents were damaged or destroyed by fire, flood, storm or earthquake:

Would your income be affected or could you generate an income?
How would you house or feed your animals?
Would you have to dry off your cows?
How would you pay any mortgage or hire purchase commitments?
How would you fund your own drawings or wages to keep key employess?
Would you be able to buy stock food and health care?
Would you be able to afford fer tilizer and other essential farm maintanence items?
...and the list goes on.

The 2004 devastating flooding in the North Island has highlighted the substantial losses that can be incurred. Some farmers lost about a third of the season’s production which has a considerable impact on income.

FMG can offer you Farming Loss of Profits cover to transfer some of the risk of loss of income to us. As each farming business is individual we recognize that we need to assess each situation to ensure the correct cover is selected. The amount of cover required is calculated on the basis of your annual gross profit.

If you wish to discuss Farming Loss of Profits cover further, or any other products and services we provide, please feel free to contact us on freephone 0800 366 466.