Canadian insurance law firm bought out

Canadian insurance law firm Nicholl Paskell-Mede (NPM) has announced it will merge with U.K.-based law firm Clyde & Co. The merger, effective September 1, 2011, will create a global network of 24 offices and 1,400 employees. NPM will take on the Clyde & Co. brand and banner.
“NPM was founded on the principle of providing our customers with specialized and tailored services in insurance law. Becoming part of the world’s leading insurance law practice will help us do that better,” said Carolena Gordon, partner at NPM.
“Through this deal, NPM clients gain access to the expertise of Clyde & Co.’s renowned global insurance practice and an established international network. We will have greater capacity to serve our clients across jurisdictions and a platform for growth within Canada, through incoming international work and expansion into other provinces,” added Karen Earl, managing partner of the NPM Toronto office.

New York Approves Deregulation of Large Commercial Insurance Products

New York insurers and insurance agents are applauding lawmakers for giving final approval to a bill that eases regulations on commercial insurance products and rates.

The bill exempts insurance policies written for large commercial businesses from most rate and form filing requirements. Insurers are still required to make informational form filings to regulators at the Department of Insurance.

Governor Andrew Cuomo is expected to sign the legislation, which will take effect 90 days after he does.

“It will enable insurance companies to serve large businesses and organizations better by freeing them from rate and policy approval requirements. The companies will now have the flexibility to offer insurance coverages customized to meet the needs of these complex organizations,” said Christopher A. Brassard, chair of the board of the Independent Insurance Agents & Brokers of New York, which supported the measure.

“Because of their size and experience, these organizations understand insurance coverage terms, conditions and pricing plans. They do not require the same protections that smaller firms and individuals need. While the insurance companies must still inform the New York Insurance Department about the policy forms they provide to these customers, they will have more freedom to design unique solutions to challenging loss exposure problems.”

The legislation (A.8464/S.5811) creates a new Class 3 of commercial lines policies within New York State’s Free Trade Zone. Policyholders whose policies generate between $25,000 and $100,000 in premium annually and who meet other criteria as identified would be eligible for an approval exemption from the insurance department policy and rate approval.

The legislation will allow insurers to move innovative products to market more quickly, according to the Property Casualty Insurers Association of America (PCI).

Kristina Baldwin, PCI assistant vice president for state government relations, said that “off-the-rack insurance products frequently do not fit the unique needs of large businesses” and that the new law will enable insurers to tailor coverage to quickly meet the specialized needs of these insureds.

Backers also said the measure will allow state regulators to focus resources where they are needed most, rather than reviewing policies for businesses that employ risk managers who are experienced in reviewing coverage and negotiating with insurance companies.

“This legislation is a positive step forward and will help foster a more efficient regulatory system for commercial lines in New York State,” said Gary Henning, vice president, Northeast Region of the American Insurance Association (AIA). “This new law will allow insurers to better meet the unique needs of their commercial policyholders.”

 

Classic Motorcycle Insurance

                                            
Dalton Timmi s specializes in Classic & Vintage Motorcycle Insurance!
We are Ontario's only insurance broker for Classic and Vintage motorcycles! We offer quality insurance products at affordable premiums.
Our CLASSIC MOTORCYCLE INSURANCE is designed to insure those motorcycles over 30 years of age that have limited pleasure usage. It is a "Stand Alone" Package policy that insures your motorcycle for Liability and Physical Damage coverages. If you are insuring more than one Classic motorcycle, you will find that your premiums decrease with each additional motorcycle  that is added to your policy. There are requirements and restrictions that are involved with this program. Current appraisals (up to 2 yrs) will be needed for all motorcycles insured through this program. Appraisal must be completed by a certified, independent appraiser. Dalton Timmis will not accept appraisals from the Ministry of Transportation.
•    Policy is written on a valued form (19A) 
•    The coverage is for twelve (12) months
•    Temporary Coverage
•    Special discounts for owners of more than one vehicle
•    Special discounts for higher deductibles
•    Coverage available for Canadian Residents only
•    Coverage applies in both Canada and the US
•    Fast professional claims service
•    No depreciation on partial losses

Brokers welcome and insurers review the CCIR's discussion paper on credit scoring

Ontario's broker association is encouraging the province's consumers to provide input to the Canadian Council of Insurance Regulators (CCIR) on the use of credit scoring in insurance.
The Insurance Brokers Association of Ontario (IBAO) was responding to the release of a discussion paper on the topic by the CCIR on June 17.
"Regulators should be commended for the release of this issues paper because it acknowledges the risks to consumers that the IBAO has been raising with government and consumers," said IBAO CEO Randy Carroll. "All consumers should provide input on this stakeholder process and should consult our Web site, www.SoaringInsuranceRates.ca, to learn more about making their voices heard."
The CCIR's paper identifies seven potential risks to consumers related to the use of credit scoring by insurers. The CCIR is asking for stakeholder input on whether these risks in fact represent a harm to consumers and whether or not current law already addresses these risks.
The Insurance Bureau of Canada, representing Canada home, auto and business insurers, said it is reviewing the report and intends to make a submission of its own as part of the consultation process.
Bryan Yetman, IBAO board chairman, observed in an email that three issues identified and discussed in the CCIR paper - consent, disclosure and privacy - played a role in a recent decision by the B.C. privacy commissioner. In that case, the privacy commissioner found an insurer had not disclosed clearly enough to a consumer that it was using the customer's credit score for the purpose of underwriting.
The CCIR paper does note there seems to be a "discrepancy between what insurers and consumers are reporting" when it comes to obtaining a consumer's consent to use a credit score for underwriting purposes.
Such a disconnect "suggests to the CCIR that the consent given is not sufficiently informed," the CCIR says in its paper.
IBC does not have an official position on the use of credit scoring. It points to a voluntary code it has published for insurers that do use credit scoring.
"Some of our member companies use it as an underwriting tool, others do not," the IBC said in its statement. "In general, we support the right of our member companies to use a variety of tools for underwriting purposes.
"For property and casualty insurance companies that use credit information, IBC has introduced a voluntary Code of Conduct that enhances the protection of privacy and other consumer rights."
IBC's voluntary code calls on an insurer to gather prior consent, whether verbal or in writing, to collect and use credit information.
The code says the consent must be informed; it cannot be given on behalf of someone else; the insurer must retain proof of the consent; and the consent is assumed to be valid for the duration that the policy is in effect

Health Insurance Online Quotes

When you decide to buy health insurance, the sales organization - broker, agent, company - must be licensed to do so in your province. Providers will make product information, coverages, pricing and applications available in numerous ways -- in local offices, through the mail, via telephone and/or on the web over the Internet.

This section of our site focuses on those organizations which offer web-based information and online quoting for some or all of their health and related products. This allows you to determine the price or insurance premium for a certain product and your set of circumstances.

Some of these providers, in addition to telling you the price, will also let you purchase your insurance online, but most offer alternatives should you have concerns about buying that way. They will also have ways you can communicate with them - e-mail, telephone, etc. - if you have questions or wish further advice. Many firms will have more local representation should you wish face-to-face discussions.

This list shows a number of additional firms which offer on-line quotes or on-line forms which you can submit to request a quote.

                                

Why Choose RBC Insurance?

Affordable protection
When you're protecting the place you call home, it’s important to choose the right insurance company.
By choosing RBC Insurance® to help protect against loss or damage to your home and valuables, you’ll enjoy lower insurance rates without having to compromise on your protection.
No-pressure advice to help you choose the right coverage
We know you're relying on us to provide the coverage you need, and we want you to feel secure that you’ve made the right choice.
If you have questions, a licensed RBC Insurance advisor will guide you through your coverage options. Our advisors go through specialized training to help ensure that they can provide you with clear, upfront advice. We want you to have a home insurance policy that fits your needs—and avoids surprises—in the event that you ever need to make a claim.

Friendly service when you need it most
How you’re treated when you have an emergency or need to make a claim is important—especially when you're dealing with damages to your home or another stressful situation. Our claims response team is available with one phone call—24 hours a day, seven days a week. RBC Insurance claims advisors have the knowledge, resources and caring touch to resolve your situation quickly and with your best interests in mind.
We even offer an anonymous claims advice line for you to call and receive impartial information pertaining to your specific situation.

Insurance products that meet your ongoing needs
Whether you own a home or condo unit, rent an apartment, or also need coverage for other properties like a seasonal cottage or revenue property, we offer different levels of coverage to meet your needs and budget.
And, because we also offer car insurance, life and health insurance, travel insurance and more, we can offer you special multi-product discounts, convenience and highly personalized service as your needs change.

Convenient ways to get a quote or buy
You can get your quote online or over the phone. And, when you're ready to buy, you can call us, buy online or even visit us at an insurance branch in select cities. For details, see ways to buy your home insurance or get a quote today!

The RBC® brand
With home and property insurance from RBC Insurance you can feel confident that we have the strength, stability and expertise to be there when you need us. We're the largest group of insurance companies owned by a bank in Canada. What's more, we’re part of RBC, one of Canada’s largest and most trusted companies and an institution whose history stretches back 150 years.

1) The Online Discount is not available in all provinces, and where available varies by province, type of insurance, renewal term and auto plan membership. Other exclusions and limitations also apply.

Auto insurance quotes to fall in Michigan

Sometimes good ideas prove to be bad ideas and the mark of any good decision-maker is having the humility to admit the error and do something to put it right. For the purposes of this article we need to go back to 1973. This was a period when morality was still a driving force in politics. Perhaps surprisingly, legislators wanted to be seen doing the "right" thing even if it was less than popular. So this year saw Michigan become the only state in the union to introduce mandatory unlimited medical benefits for those injured in traffic accidents. This was the high-water mark for financial responsibility, taking the view there should always be enough money to treat those injured on our roads.
The only problem with idea is the cost. Many people are seriously injured and require long-term care. Worse, without a cap on the spending, there has been a temptation for hospitals to offer an open-ended and comprehensive treatment program for everyone injured. This helps explain why Michigan has one of the highest premium rates with Detroit being the most expensive city in the US (New Orleans is the second most expensive city where average premium rates are one-third lower). The claims for personal injuries have more than tripled in value over the last twenty years. Today, the average driver pays more than $25,000 per year for cover. Such high rates in a state with long-term structural unemployment has forced many drivers to risk running without insurance. The estimate is that 17% of the drivers on the road are uninsured.
State Senator Virgil Smith who represents Detroit is currently drafting a bill to use the city as a testbed for a new approach to insurance, following models in California and New Jersey. The plan is to allow insurers to offer a basic policy to all drivers who earn less than $30,000 per year, drive a vehicle worth less than $20,000, and have a clean driving record. Although the Senator is still to set limits, the proposal looks to set a cap on medical claims, probably around $50,000. The expectation is that those who would be eligible would see their annual insurance costs fall to as little as $1,000 per year. If this is proved effective in reducing the number of uninsured drivers, the program would be rolled out over the state. Again this follows the example of California which tested its Low Cost Automobile Insurance Program in Los Angeles and San Francisco before extending it to the whole state.
It may well be that, as medical costs have been rising fast, Virgil Smith's suggestion of a $50,000 limit is way too low. But the option of doing nothing is obviously irresponsible. There's a crisis caused by the lack of cheap auto insurance for those on low incomes. It's for the state to control costs. This is the only responsible thing to do when the state mandates its citizens to buy insurance. When most people acknowledge car insurance rates are unaffordable and this forces people to break the law, the law must

7 Insurance Tricks That Cost You Money

Is there a technique to get insurance against insurance? For some who have been victims of the meticulous practices of some insurance companies, they probably wish they could purchase some protection against their insurance. Sadly, we often feel like we're at the mercy of the insurance giants, but there is a way to level the playing field: education. If you know their tricks, you know how to avoid them.

1. You May Not Need Collision Insurance
So you purchased an older model car. It's only worth $2,500 and is seven or more years old. As your car depreciates, it gets closer and closer to your deductible. Remember that the insurance company won't pay you any more than the value of your car, so if the value is the same or less than your deductible, you won't get any money. If you're driving an old car, consider not getting collision insurance. The minimum policy required by law is sufficient in your case. Don't count on your insurance agent to tell you, though.
2. If You Have a Car Loan, You Need Gap Insurance
After you got rid of that old car, you purchased a shiny new car complete with that brand new car smell that everybody loves. You took out a loan for $25,000 and drove home. Two weeks later your car was totaled and the insurance company offered to pay you $21,000 for the car. The bank is going to still want the $25,000 you owe, so you'll be on the hook for the other $4,000.
Without gap insurance, you have to pay it out of your pocket. If you have a loan for your car, you should also consider gap insurance.
3. Anti-Concurrent Language in Your Policy
You live in a coastal town and recently a major hurricane came through and caused major damage to your home, including tens of thousands of dollars in flood damage. Everything will be covered because you have hurricane insurance as part of your homeowner's policy, right? Wrong!
Your insurance company tells you that because of the anti-concurrent language in your policy, nothing is covered because flood damage isn't covered even though the damage was clearly caused by the hurricane. Adding insult to injury, they tell you that you should have read your policy. Does all of this sound confusing?
Make sure to ask your insurance agent about the anti-concurrent language in your policy and ask them to show it to you in the pol
4. You'll Never Understand It, Anyway
Have you ever tried to read your insurance policy? Regardless of your level of education or your street smarts, these policies are written in an extremely complicated way, but this problem is quickly being solved. Legislation in more than half of the United States has been introduced or enacted in to law making insurance companies write their policies in plain English. Always ask for an explanation of the policy if you don't understand it. Do you have a phone that allows you to record? Turn the microphone on and record the insurance agent's explanation.
5. We Use Your Credit Score to Determine Your Rate
Had some troubles paying your bills? Bankruptcy? These may not appear like unreasonable items for your insurance company to look at if they're trusting you to make payments on your policy, but think of it another way: What if you believe in paying cash for everything and you have no credit? What if you're elderly and no longer make purchases requiring credit?
This practice assumes that having credit makes for a responsible person when in actuality, some people are so responsible that they don't need credit at all. When receiving a rate quote, ask the agent if they used your credit score as a metric to determine your rate.
6. We Get a Bonus If We Hassle You
According to a North Dakota Insurance Department report released in 2007, Farmers Insurance used to have an encouragement program called "Quest for Gold" that rewarded adjusters with pizza parties and $25 gift cards if they met low payment goals. They weren't the only ones -- others rewarded adjusters with various gifts and pressured employees to meet low payment goals.
Before entering into consultation with the insurance adjuster, know how much your car is worth, have a clear idea of the extent of your injuries and speak to an attorney if necessary. While not all insurance companies are going to act this way, they want to save money as much as you want to make money, so they will most likely not give you their best and fair offer without a little bit of negotiation on your pa
7. We Consider It a Claim If You Call
A neighbor accidentally hit a baseball through your kitchen window, but you don't remember what your deductible is and you've never made a claim against your homeowner's insurance, so you call the company to collect some information. You tell them the situation and simply ask for information.
Your insurance company may view that as a claim and adjust rates accordingly and the call may go in into the CLUE (Comprehensive Loss Underwriting Exchange) report on your house, which is available to anybody with a financial interest in your home. That one phone call may make it difficult to get insurance for your home.
If you have a question about your policy and must call, make your question into a general question that you are asking to gain an understanding on your policy.
The Bottom Line
Not all insurance companies are out to get you, but like all types of businesses, there are honest and dishonest people and you have to protect yourself at all times.
___

Need for Automobile Insurance

Your means of transportation may be your long appreciated 'Palace on wheels' or one that can barely be called a four-wheeler but the very fact that it has to ply on rough and tough Indian roads, should be reason enough to insure it.

think what your vehicle has to endure - potholes, open manholes, puddles, unstirred roads, our traffic management system, poor pedestrian management, absence of footpaths for pedestrians, jaywalkers and an increasing number of accidents are few of the stark realities.

                                            

Footpaths:

As footpaths are encroached by hawkers, pedestrians have a tough time dodging stuck between vehicles to reach the other end of the road. Large potholes and manholes are a common sight and during the monsoon the situation can get only worse causing untold damage to your vehicle.

Drunken driving:

Drunken driving is another very common feature. Be it a car, a two-wheeler, or even a truck, drunken driving is one of the major reasons for increase in accidents. Though drunken driving is a liable to be punished by offence the penalty has hardly proved to be a deterrent.

Reckless Driving:

Besides, rash driving by youngsters is an additional of the dangerous realities that you should consider. Majority of the youngsters drive irresponsibly caring little for the law, causing serious accidents resulting in loss of life or limb.

Theft:

Cases of stolen cars are on the rise. Experts in stealing cars are well aware of the loopholes that can be exploited and accordingly have also been successful in manipulating with the chassis number of vehicles in order that they are not traced.

Fire:

Other than these there is also a danger of fire or theft of your vehicle.

Vehicle insurance under such unsafe conditions is a must not only to cover risks towards yourself and your own vehicle but also to cover the financial liability that may arise from an accident in which the other party is injured.

Consider the exorbitant cost of repairs that you would have to pay to the other party in case of an accident.

Besides if the accident involves hospitalization too, the operating cost can go through the roof.

It would be a great burden if all these costs had to be borne by you. But if your vehicle is insured the insurance company can be of great help. It can indemnify you against such losses and the financial liability that would have been solely on you is taken over by your insurance company.

Employment Insurance Canada

Employment Insurance Canada is an absolute necessity for the capitalist in Canada. Many single parents, mainly women, are joining the self-employed position to have more time and accessibility for the children. It is crucial for parents in this situation to safeguard their health and finances by having sufficient Employment Insurance Canada.
The percentage of women in the self-employed group is increasing every year. There are many advantages to being self-employed. These include: deciding when and where to work; flexibility of work schedules; sovereignty; choose work and family time; and many others. There are also ways it is not so great. Many self-employed people have to work more hours than salaried employees do simply because they are making their own way.
In many cases, becoming a self-employed entrepreneur is taking a lot of risk. If you compare the pros and cons from almost everybody in this class, you will find the pros far outweigh the cons. The freedom to guide your own destiny carries a lot of weight. The harder you work, the more you benefit. Protecting the benefit is part of the cause to have a good self service insurance policy which is Employment Insurance Canada.
The Internet is a great reserve for locating insurance providers offering Employment Insurance Canada. Just a few clicks of the mouse and you can find agencies and brokers with access to many companies offering Employment Insurance Canada plans for the self-employed. You can answer a few questions and with one submission, receive several quotes for coverage. Carefully examine all the fine points and make sure the coverage is exactly what you need before making a commitment.

Auto Insurance Tips

                                     
According to the idea that we live in a world where the whole thing is possible to occur, insuring what you acquired through dedication would be a smart decision.
Lots of people vision about free range of motion in order to reach out all over the place they wished for as fast as they can and the answer for that question is figured out by them as if it were their own car.
Every day we read and watch pieces of information on the news about car crashes all over the world. This usual scenario no longer frighten us as consequence of the occurrence this kind of accident gets bombed in our minds, every single day.
However, we must realize that it can happen to anyone at anytime. thoughts about that and in order to keep car crashes at bay, the great majority takes up car insurance.
In buying car insurance, depending on the type of agreement made with the insurance company, they might be covered against- the vehicle repair dues following the accident; The cost of purchasing a new vehicle if it is stolen or damaged beyond economic repair; Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party. Liability insurance - the first explained - covers only the last one of the three while comprehensive insurance covers all of them.
However, the comprehensive insurance does not fully cover the risk associated on buying a new car.

Insurance auto (also known as car insurance) can have many different aspects and clauses, just like the "Life Insurance", which enables to choose the one that fits best in their lives. Auto insurance is the best way to drive safely and preoccupation free these days. To drive under the laws and being a good driver, sadly, is not enough, today.

According to the idea that we live in a world where the whole thing is possible to occur, insuring what you acquired through dedication would be a smart decision.
Lots of people vision about free range of motion in order to reach out all over the place they wished for as fast as they can and the answer for that question is figured out by them as if it were their own car.
Every day we read and watch pieces of information on the news about car crashes all over the world. This usual scenario no longer frighten us as consequence of the occurrence this kind of accident gets bombed in our minds, every single day.
However, we must realize that it can happen to anyone at anytime. thoughts about that and in order to keep car crashes at bay, the great majority takes up car insurance.
In buying car insurance, depending on the type of agreement made with the insurance company, they might be covered against- the vehicle repair dues following the accident; The cost of purchasing a new vehicle if it is stolen or damaged beyond economic repair; Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party. Liability insurance - the first explained - covers only the last one of the three while comprehensive insurance covers all of them.
However, the comprehensive insurance does not fully cover the risk associated on buying a new car.

Insurance auto (also known as car insurance) can have many different aspects and clauses, just like the "Life Insurance", which enables to choose the one that fits best in their lives. Auto insurance is the best way to drive safely and preoccupation free these days. To drive under the laws and being a good driver, sadly, is not enough, today.

Health Insurance Stock Outlook - June 2011

            A number of health insurers reported better-than-expected first-quarter earnings, with the out performance driven by higher staffing figures, organizational changes and fewer regulatory reform-related losses. Most of them are moving into a third year of record profits, which has been augmented in recent months by a lingering recessionary mindset among Americans who are postponing medical treatment.
This trend in medical utilization benefited the group’s results last year as well. Unfavorable weather late last year and early this year were also at play in the utilization numbers. We wait for utilization to remain soft in 2011, which will act as a tailwind for the industry.
Looking at the past trend when unemployment increased rapidly in 2008, the utilization factor did not see a proportionate drop, indicating its lagging nature. Thus, even if the employment scenario improves in 2011, we do not expect any acceleration in utilization activity until 2012.
A primary focal point of the health insurance industry will be the Medical loss ratio compliance provision of the Health Care Reform Act, which came into effect this year. Carriers are required to keep a minimum medical loss ratio (percent of insurance premium dollars allocated to providing care) of 80% for individual and small group policies and 85% for large commercial ones.
Apart from deriving revenue from insurance premium, health insurance companies also draw revenue from investments, though only a small fraction of industry income is related to investment activity. The majority of industry investments are in short-term securities, since benefits are paid out on a consistent basis.
As a result, short-term interest rate actions affect investment revenue. Since interest rates are expected to rest at low levels for quite some time, we expect a lackluster trend in investment income over the near to medium term.

                                        

Motorcycle Insurance In Canada: Things You Should Know

In Canada, motorcycle owners have got to have insurance by law. But each insurance company makes its own assessment of risk when setting rates for a given rider, based on a long list of variables. The end result is that rates can vary significantly from insurance company to company.

Motorcycle insurance is dispersed to consumers through different networks of licensed insurance professionals. They are:
• Insurance Brokers - Provide independent and expert advice, advocacy and support to consumers with respect to their motorcycle insurance needs and typically work with, and sell policies for, a number of different insurance companies.

• Insurance Agents – Provide expert advice, advocacy and support to consumers with respect to their motorcycle insurance needs and work with, and sell policies for, one insurance company.

• Direct Writers (Direct Response Insurers) - Provide expert advice, selling and servicing property and casualty insurance products, including motorcycle insurance, in Canada through direct response marketing and distribution for one insurance company.

Have Motorcycle Insurance?
Motorcycle insurance protects riders in the event of a future loss. A standard motorcycle insurance policy covers the following:

• Third-Party Liability
Protects you in the event of an accident causing loss or damage to another person when you are at fault.

• Accident Benefits
Offers benefits to protect you if you are injured in an accident, regardless of who caused the accident.

• Uninsured Automobile Coverage
Protects you in the event of death or injury caused by an uninsured motorist or by a hit-and-run.
Other Optional Coverage Available On Most Motorcycle Insurance Policies:

• Loss or Damage Coverage
Includes All Perils, Collision, Comprehensive and Specified Perils. You can purchase a combination of these coverages to protect you against loss of, or damage to, your motorcycle caused by collision, fire, theft, and a variety of other unpredictable risks. 

Considerations When Buying Motorcycle Insurance:

• Shop Around
Motorcycle insurance rates can vary significantly from one insurer to the next, so only by checking around for comparative quotes can you be sure you have the best price available.

• Motorcycle Riders Training Course
You may be able to lower your insurance premium by taking a training course.

As Arkansas Floods Recede, Counties Cope With Damage

As the rivers running through eastern Arkansas start to recede, residents and farmers are beginning to cope with the aftermath of devastating floods — ruined homes, ravaged farmland and major holes in local budgets.
Agriculture is the major manufacturing in many flood ridden areas of the situation The Arkansas Farm Bureau in early May, when additional than one million acres of cropland were under water, indicated the total crop loss from flooding was at $500 million, with millions more in equipment and other damage.
As the state’s major industry segment, agriculture yearly accounts for $16 billion of Arkansas’ economy, according to the Farm Bureau. Impact from cropland floods is predictable to have effects far beyond the farmers’ and ranchers’ direct losses.
Randy Veach, a cotton, rice and soybean farmer from Manila (Mississippi County), who is president of the Arkansas Farm Bureau, noted that the state has this year experienced “flood levels never seen before.” He said it would take several months to determine the extent of the disaster’s impact on the state.
Veach noted the Farm Bureau’s estimate does not take in costs to repair infrastructure, farm equipment, loss of grain in storage bins, and repairs to farmland, which could reach well into the tens of millions of dollars.
Warren Carter, director of product and regulatory affairs for Arkansas Farm Bureau, said the loss in rice acreage is expected to be around 300,000 acres, resulting in a loss of $300 million in rice production. Arkansas is the largest rice-producing state in the nation, annually accounting for about half of the nation’s rice crop.
transporter noted that much of the loss could be offset by plantings of other crops. Soybean acreage, as an example, is expected to skyrocket, because the planting window for that crop is significantly wider than for rice, cotton, corn and grain sorghum. However, late-planted crops are vulnerable to a number of additional risks, including early frosts, hurricane season, insect and disease issues and other problems. This makes the replacement value of those crops difficult to assess.
Arkansas was projected to plant 1.3 million acres of rice in 2011. Some of the rice crop already planted could survive the floods, though reduced yield and quality issues will likely limit the value of that crop further.
The Farm Bureau estimates that 120,000 acres of the roughly 550,000 acres of winter wheat planted this year will be abandoned due to the flooding, resulting in a loss of $40 million that won’t be replaced by other crops.
Other noteworthy losses are forecast for cotton, with reduced yield losses predictable at $66 million; plus another $35 million in added costs to get this year’s cotton crop in the ground, including fertilizer, fuel, herbicides, etc. Additionally, a loss of roughly $37 million is being estimated in forage, hay and fencing. The Farm Bureau estimates roughly 6,000 miles of fencing will require repair or replacement.