INSURANCE SCHEME

Bay of Plenty Beacon, Volume 3, Issue 214, 18 September 1940, Page 8

INSURANCE SCHEME

COVERING CULL COWS PRINCIPLES OUTLINED n ; ; AROHA, Monday. A decision to accept *-tlie cull cow insurance scheme proposed by the Springdale-Elstow committee was made at a meeting of the T'e ArohaWaihou branch of the New Zealand Farmers' Union. The chairman, Mr G. H. Reid, said it was undoubtedly most essential to have a scheme whereby the farmer would be covered in the event of losing stock during l/xe drive to the works. The proposed scheme was outlined by Mr A. T, Goombe„ chairman of the Springdale-Elstow cull cow committee. He said it was proposed to pay compensation on all cull cows, including losses on the road to the works. Of course cattle would be subject to inspection on the farm, to prevent any farmer sending stock away which he knew to be diseased and would be turned down at the works, and those not passed on. inspection would bo taken a I the owner's risk. Compensation should not reach more than 75 per cent of the total boner value of the beast, this to include any insurance payable in the ordinary way through the works. Reasons for the need of some protection to tlie farmer for his stock were stated by Mr Coombe. He instanced last year, when on 640 head handled, 23 or 4.28 per cent were condemned for disease for which compensation war payable, but 18' or 2 .77 per cent were condemned or lost without compensation, four head being lost on the road, Taking these figures as a basis, it was felt they shoulld' >e reasonable to work on, as with the experience gained the losses in future should tend to decline, especially on the road.

Cost to Farmer. The insurance scheme proposed would cost the farmer as follows: On road losses and number of compensation cases it avouKl take a levy of about 1/9 per head on aljl cattle handled. The cost to cover further compensation on cases AA r ould be 1/'-, and the total levy of 75 per cent of the boner valite would amount to 2/9 per head. HoAvever, it Avas proposed to take 9d off the present com mission of 1/6 which is received from the works, and thus reduce the levy to 2/-. This Avoultl alloAV of an apparent payment on a 4001b beast in compensation cases of £3 18/-, and £3 7/on losses, plus skins when the cattle reach the Avorks. If the 75 per cent value Avere paid it Avould be about £3 less insurance leA r y and droving, thus leaA r ing an apparent profit to the farmer of iS/- a head in the one case and 7/- plus skin in the other. It Avoultl be pointed'out* hoAve\ r er, that in the first drive only one beast out of those condemned was I under 4001b, and it Avas quite possible that an average Avell over 4001b Avouid be the case in another season. If this AA'ere the case, it could be readily seen that the need of 18/per head in hand is essential. The scheme, concluded Mr Coombe, was brought down by a special committee comprising Messrs' R. Horn, G;. Wagstaff and himself to investigate the proposal, and it AA'as felt sure that the proposed insurance woul'd meet AA 7 ith the approA'al of the farmers.