Farmers need educating about the role of multi-peril crop insurance before it can become a mainstream product, Rural Insurance Solutions MD Wayne Brown says.

“There are a lot of different types of crop insurance products, and what we’re now in is an education process,” he told insuranceNEWS.com.au.

“Crop insurance is a must for farmers, but I would like to see the Government become involved in educating them on the benefits.”

The Government has flagged a $30 million scheme in its agricultural white paper, to encourage farmers to take up crop cover.

But Grain Producers Australia Chairman Andrew Weidemann says this is not enough.

“I don’t think the money on offer will swing farmers into taking out cover,” he told insuranceNEWS.com.au. “Trying to educate farmers about crop insurance is what we would like to see done with the white paper money.

“The [Agriculture] Minister does need to spend the money on education.”

Mr Brown says insurers must take a long-term view on crop insurance, to create the most suitable products for growers.

“If crop insurance is to be successful, we will need to get people such as actuaries involved to create the best products for the industry,” he said.

Mr Weidemann agrees more people should be involved in developing multi-peril crop insurance products.

“We need to talk to the reinsurers and we are not doing that at present,” he said. “Products at present are not sustainable, but eventually they will become a commodity product.”

Weather at the start of a growing season can be the decider for farmers considering whether to buy insurance.

Mr Brown says drought is still the key factor.

The Bureau of Meteorology has predicted above-average rainfall next month and in May for southeast Australia and the south of WA – key grain-growing regions.

With a good planting season, it is expected many farmers will question the value of cover.