Did you feel the heat last year?
If 2015 felt hotter than usual, it could be because it was. Recent research from the Bureau of Meteorology (BOM) revealed that 2015 was the fifth-warmest year on record. The was largely due to the presence of an El Nino event causing high ocean temperatures.
As a result, 2015 saw extreme weather events, resulting in a high risk of damage to farms. For those with the right crop insurance, the financial consequences of extreme weather can be protected against.
2015 sees record-high temperatures
“The national mean temperature was 0.83°C above average.”
Alongside the warmer than average temperatures in Australia, rainfall was 5 per cent lower than average across the country (443.7 mm), as reported by BOM.
“The national mean temperature was 0.83°C above average, with a number of notable heatwaves during the year and record-breaking temperatures from October to December,” BOM Acting Assistant Director for Climate Information Services Dr Scott Power said.
BOM attributes much of this extreme weather to the El Nino that made its way across the Pacific in 2015. This resulted in warmer water temperatures and a higher risk of bushfires alongside other hazards. These natural risks can have a detrimental effect on companies and could even result in the need for business interruption cover.
Fortunately, the BOM has reported that the worst impacts of El Nino are likely to be left in 2015.
El Niño to slow down in upcoming months
The BOM has announced that various indicators analysing the impact 2015-2016 El Nino suggest the event is in the decline. While tropical Pacific Ocean temperatures reveal that is likely to be one of the top three fiercest El Nino’s in the last 50 years, similar analysis indicates the event has reached its limit.
At its peak, however, the El Nino showed few hints of slowing down.
— NASA (@NASA) January 5, 2016
However, the BOM warns that an El Nino is sometimes followed by a La Nina, with models suggesting there is a 40 per cent chance this could occur. The National Aeronautics and Space Administration (NASA) stated that a La Nina event produces opposite effects to an El Nino, due to colder than average ocean temperatures.
Both events can cause damage to businesses, especially farms due to their vulnerability to extreme weather events. Whether it’s horticulture or forestry, the right crop insurance can help mitigate the risk and reduce any financial impact your company suffers as a result of any damage incurred.
Does your farm have the cover it needs? Get in touch with the brokers at MGA Insurance for assistance in acquiring the right farm and crop insurance.