Loss of single farm payment protection – Insurance for contract farmers

Many arable farmers contract or share farm significant cropping acreages for more than one landowner. In many cases the landowner draws the single farm payment, yet the contract farmer is responsible for complying with the plethora of cross compliance regulations in order for the landowner to be able to claim the single farm payment.
 

Many contract and/or share farming agreements (set-up by land agents/Farm management consultants) put the responsibility firmly in the hands of the contract farmer for all cross compliance and indeed hold the contract farmer responsible for reimbursing any SFP lost due to non cross compliance.  This is of great concern to contract farmers.
 

With contract farming margins coming under pressure due to increased costs and low crop values, it is of paramount importance that the contract farmer is able to adequately insure against loss of the landowners single farm payment. Standard farm insurance policies do not cover this.
 

Numerous contract farmers may be under the misapprehension that their existing public liability cover will insure such a loss. Public liability will not cover such a situation; it only covers damage to property or injury to persons.
 

Farmers & Mercantile have therefore designed an exclusive insurance product that can be added to the liability insurance of any Farmers & Mercantile client, this then provides cover against loss of the landowners single farm payment due to non cross compliance by the contractor. The cost of this extension to insurance cover is not high and could be extremely valuable.
 

Please ask a Farmers & Mercantile consultant for more details, call us on 01604 782 782. 

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Farm Insurance: Arable,  Farm Diversification,  Livestock,  Mixed Farm