Amidst the ongoing uncertainties impacting crop production globally, the agricultural sector faces a heightened threat – escalating fire risks. Daniel Stevens, head of agriculture at Santam, underscores the urgency for effective risk mitigation and the adoption of comprehensive fire insurance to shield farms from the growing peril.
Stevens highlights the gravity of the situation, stating, “The increasing frequency and severity of veldfires pose a significant risk to the agricultural sector.”
This concern stems from recent challenges faced by Cape Town’s fire and rescue services, experiencing the most difficult period in over four years.
Fires not only result in severe damage to property, equipment, and infrastructure but also lead to substantial losses in assets, livestock, crops, and natural grazing pastures, with the added complication of potential liability issues.
Cape Town authorities responded to 13 087 incidents between October 2023 and January 2024, with 55% of these being vegetation fires – a 19% increase in veldfires compared to the same period last year.
The surge in fire incidents can be attributed to environmental shifts, including changing weather patterns and expanding human settlements.
Stevens draws attention to the Santam Insurance Barometer report, indicating that “45% of agriculture-focused business respondents singled out climate change as a top concern”. As farms face heightened vulnerability to wildfires, the impact extends beyond the immediate consequences, affecting entire communities and jeopardising livelihoods.
Given these escalating challenges, Stevens asserts that “fire insurance should be a central element in every farmer’s risk management strategy.” Contrary to the misconception that fire insurance is costly, he emphasises, “the risk of not having it could well prove even more costly.”
Stevens underscores that “fire insurance is an investment in the future sustainability of your farm, and a non-negotiable when it comes to safeguarding your legacy.”
Safeguarding against fire risks
Regarding coverage specifics, Stevens adds that crop insurance includes protection against fire damage in selected areas. “Visible damage to fruit and grains due to uncontrollable causes in insured orchards or fields is covered, provided proper firebreaks were prepared and maintained prior to damage.”
The cessation dates for cover vary based on the crop type, with Stevens detailing specific conditions for fruit, summer grains, non-producing trees, and winter grains.
He underscores the importance of timely reporting, stating that “visible signs of insured damage must be reported within three days after the damage has occurred.”
Farmers are urged to prioritise fire insurance as a critical component of their risk management strategy. As fire risks continue to escalate, the adoption of comprehensive insurance becomes paramount in securing the livelihoods and sustainability of the agricultural sector.
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