Significant increases in commodity prices and the rising cost of fuel, stock, feed and machinery has triggered concerns that some farmers in the West Country may not be adequately insured.
Rural insurers say the issue is ’serious’ for the region’s agricultural industry and is urging farms to review their insurance cover more regularly or risk becoming financially worse-off.
"Most farmers usually look at their policies on a yearly basis, but because the cost of commodities such as red diesel, domestic fuel, oil, grain, chemicals, fertilisers and livestock are changing all the time, they need to take account of this and review them more often" said Philip Wilson of Cornish Mutual.
"Prices have soared at an unparalleled rate recently and farmers could find the actual value of their stocks and premises is significantly higher than the figure insured - checking cover only annually is no longer enough. If you make a mistake, it could have serious financial consequences."
Philip adds, "We’re also seeing increasing investment in new machinery and buildings on the region’s farms and if farmers have bought equipment, perhaps a vehicle or piece of expensive kit recently, it’s important they speak to their insurer to make sure they’re covered. If they don’t, they could find they are significantly underinsured when it’s too late."
Andrew Bray, a farmer from The Lizard in Cornwall, who recently invested in a new dairy unit, said "I wanted to make sure that we had the right level of insurance for the building when it was handed over to us. It was important to get advice from the beginning because it was a significant investment we were making."
The new 33,000 square foot dairy complex took five months to build and includes computers, housing, feeding and handling facilities, calving pens and a viewing platform, as well as a milking parlour that can stand 28 cows at a time.
