. Energy News .

Lender tests drought insurance for African farmers
by Staff Writers
Paris (AFP) June 9, 2011

Development lenders are forging new weather insurance schemes to protect small farmers in the developing world from being wiped out by drought, the head of a World Bank subsidiary said Thursday.

"We're experimenting now with weather insurance for small holders in places like Rwanda," said Lars Thunell, chief executive of the International Finance Corporation, which specialises in private sector development funding.

He told AFP that volatility in commodity prices and weather, particularly drought, are the two big risks to small-scale farmers in the developing world.

The IFC, he said, was looking to develop a financial "hedging mechanism" that could help protect these farmers from price swings and also, with EU grant aid, a system of weather insurance for drought-prone areas.

"You get a product where you have both the financing and the weather insurance in one. You give them the financing. If the drought is bad enough, (they) don't have to pay," he said.

Thunell said governments would have to make data available for insurance companies to calculate the weather risk to farmers and warned the system would not work in places with too harsh a climate.

"If you have too erratic weather, then of course it is too difficult for the insurance companies to price the risk and it is going to be too expensive," he explained.

"If you have reasonable regularity, so that you know for example that every five years you have a drought, then you can do it," he added.

"We see some of the big insurance companies like Swiss Re and Munich Re and others being more and more interested in this."

earlier related report
France to give farmers 1 bn euros drought aid: PM
Paris (AFP) June 9, 2011 - France will have to pay a billion euros ($1.5 billion) in aid to farmers hit by a drought in parts of the country, Prime Minister Francois Fillon said on Thursday.

"We now have to implement direct national support for the farmers," Fillon told the Senate. "It is nearly a billion euros that the nation will have to commit to our farmers."

Limits on water use are in place in more than half of France's administrative departments after weeks of warm weather.

A national disaster fund for farmers has been set up and has already made available 200 million euros for "the most urgent cases" but this sum is likely to be "largely exceeded," Fillon said.

The one-billion-euro estimate "is not a very exact one because it depends on the requests of the farmers," he added.

President Nicolas Sarkozy earlier Thursday unveiled a plan to help the farmers, offering them relief on tax and loan repayments.

He stressed the government would avoid giving the kind of direct state subsidies that would break European Union rules.

Related Links
Farming Today - Suppliers and Technology

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries

Kill a camel to cut pollution concept in Australia
Sydney (AFP) June 9, 2011 - Australia is considering awarding carbon credits for killing feral camels as a way to tackle climate change.

The suggestion is included in Canberra's "Carbon Farming Initiative", a consultation paper by the Department of Climate Change and Energy Efficiency, seen Thursday.

Adelaide-based Northwest Carbon, a commercial company, proposed culling some 1.2 million wild camels that roam the Outback, the legacy of herds introduced to help early settlers in the 19th century.

Considered a pest due to the damage they do to vegetation, a camel produces, on average, a methane equivalent to one tonne of carbon dioxide a year, making them collectively one of Australia's major emitters of greenhouse gases.

In its plan, Northwest said it would shoot them from helicopters or muster them and send them to an abattoir for either human or pet consumption.

"We're a nation of innovators and we find innovative solutions to our challenges -- this is just a classic example," Northwest Carbon managing director Tim Moore told Australian Associated Press.

The idea was among those accepted for discussion by the government, which is seeking to "provide new economic opportunities for farmers, forest growers and landholders" if they come up with ways to cut emissions, according to the document.

Heavily reliant on coal-fired power and mining exports, Australia is one of the world's worst per capita polluters and the government is looking at ways to clean up its act.

Legislation for the "Carbon Farming Initiative" is set to go before parliament next week.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Belarus ready to sell top potash firm: report
Minsk (AFP) June 7, 2011
Cash-strapped Belarus is negotiating the sale of its most prized asset, the potash producer Belaruskali, under the terms of a loan agreed this month with Russia, the Wall Street Journal reported Tuesday. Responsible for one-third of the world's potash fertiliser production, Belaruskali could be worth $20 billion, the report said, citing people familiar with the negotiations. Potential bu ... read more

NASA ocean-watch satellite set for Friday launch

Satellite and Radar Data Reveal Damage Track of Alabama Tornadic Thunderstorms

New NASA Map Reveals Tropical Forest Carbon Storage

Three Satellites See Eruption of Puyehue-Cordon Volcano from Space

Russia plans to launch six Glonass satellites in 2011

India plans to make GPS more accurate with GAGAN

EU to launch Galileo satellites this fall

Galileo: Europe prepares for October launch

50 percent increase in sustainably managed tropical forests

Higher density means world forests are capturing more carbon

Managing forests requires a bird's-eye view

Greenpeace says Barbie is forest vandal

Viable Pathway to Develop Sustainable Aviation Biofuels Industry

Winston Wong Bio-Inspired Ice Vehicle Premiered at NCKU

Shell and Cosan fuelling a lower-carbon future with biofuels

New Global Website Presents Low-Carbon Solutions from Sugarcane

McCormick Powers Up Second Solar Installation from Constellation Energy

Record-Breaking German Solar Demand Fuels Green Job Growth

New Solar Station in Crimea Becomes Ukraine's Green Strategy Milestone

Delhaize Demonstrates Environmental Commitment

China wind energy firms back subsidy move: report

US claims victory in China wind energy spat

Mortenson Builds Sixth Wind Project in Golden State

GL Garrad Hassan releases update of WindFarmer 4.2

21 dead in China mine floods: state media

19 trapped in flooded China coal mines: Xinhua

13 dead in China mine accidents: state media

Massey Energy blamed for mine disaster

Man gets death in China case sparking Mongol unrest

Kazakhstan deports Uighur back to China: official

China executes student over hit-and-run murder

Nearly 100 held in restive China region: rights group

Memory Foam Mattress Review
Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement