Large areas of eastern Australia’s wheat belt have escaped the devastating floods which swept through NSW and Victoria last week.

Primacy Underwriting Agency Underwriting Manager Peter Book says some crops will be lost, but the overall situation isn’t as bad as has been made out.

“There are still large areas of the wheat belt that are going to deliver good crop yields,” he told insuranceNEWS.com.au.

“In the north, more than 50% of the harvest was stripped before the rains and there is still a large area that can be harvested.”

Rabobank GM Rural Australia Peter Knoblanche says the rainfall has been favourable in many key agricultural regions in the eastern and southern states during much of the spring, with farmers anticipating a bumper season.

“However, the picture has changed in many parts of the eastern states in recent weeks with continuing persistent rains causing harvesting delays, some crop losses and impacting quality and yield,” he said.

Mr Book agrees there will be some losses, but it will still be a good season overall for the grain industry.

“The rains will take some of the icing off the cake, but we still have the cake,” he said.

The good outlook for wheat and cotton yields will also boost insurance premiums next year after a long spell of poor results, but Wesfarmers Federation Insurance CEO John Ripepi says he expects insurers will examine premiums for farmers who have suffered severe crop damage.

“In some cases where clients have sustained severe crop damage, not covered by their policy, we may look to offer some relief on their crop premium due in 2011,” he told insuranceNEWS.com.au.

“However, this will be determined on a case-by-case basis with clients working closely with our local area managers.”

Mr Ripepi says the current rainfall will produce excellent soil moisture profiles for next season and create good yields, thereby helping premium growth.

Meanwhile the SA Farmers Federation has called for a review of crop insurance after the state was hit by storms last week.