Western Australia's heating up: Are farmers protected?

It's reasonable to argue that Western Australia's (WA) farmers are facing more risk now than they were a century ago.

A recent report by the Climate Council discovered that Perth has experienced 50 per cent more heat waves since 1950. Last year, the state's annual maximum average temperature broke a new record. In January 2014, Perth Hills bushfires destroyed an estimated 650 hectares of property, resulting in $15 million worth of losses.

Given these findings, farmers throughout WA s??€‹hould reassess their crop insurance policies to ensure they're protected in the event wild fires decimate their land.

The immediate future

While the research formulated startling predictions regarding the next 50 years (in 2070, the number of days considered "dangerous" to outdoor workers will be 20 times higher), the Climate Council assessed risks pertinent to 2015 as well.

WA's southwest region has a history of bushfires spanning back to 1961. However, the frequency and severity of these disasters has increased. In 2009 wild fires in Toodyay caused $50 million in damages, and another incident in February 2011 destroyed 72 homes around Perth Hills.

As far as 2015 is concerned, the Climate Council referenced statistics from the WA Department of Fire and Emergency Services, which found that almost 80,000 hectares of land throughout the state has been destroyed so far this year.

Being prepared

There are certain farm insurance packages that protect farmers from accruing losses as a result of natural disasters. Farm Weekly explained in an April 09 article that a potential federal mandate could foster interest in multi-peril crop insurance (MCPI).

RSM Bird Cameron and other organisations speculated that certain tax exemptions would encourage adoption of MCPI, and boost the fiscal sustainability of agricultural operations as a result.

"We anticipate that [tax concessions] will not only reduce the cost of premiums but also inject vital working capital back into agriculture following a catastrophic production event such as those experienced in certain parts of WA in recent years," said an RSM Bird Cameron spokeswoman, as quoted by the news source.

A white paper developed by the Australian government focussing on the issue is expected to be released quite soon, the source added.