Crops Go Uncovered as South African Insurers Weigh Drought
- Farmers planting vegetables in some areas excluded from cover
- Premiums are becoming too expensive, some farmers say
Dried maize corn plants grow in a drought affected field in Lichtenburg, North West Province of South Africa.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Swathes of dying cornfields and the lowest rainfall since records began have prompted South African insurers to cut cover for some crops planted by farmers.
“As part of our constant negotiations with our re-insurance partners, there are some crops that will probably be excluded in certain areas as the risk is just too high,” said Andries Wiese, manager of the agricultural unit at Johannesburg-based Mutual & Federal Insurance Co., a unit of Old Mutual Plc.