National Farmers' Federation

Financial Risk Management Project

The National Farmers’ Federation is partnering with the NSW Government in a project examining the financial risk management products and tools available to Australian farmers. 

The project will engage closely with farmers in identifying the strengths and weaknesses of existing on-farm financial risk management products and tools, as well as new and or improved products and tools.

It will examine barriers to accessing products and tools, both supply and demand side barriers. And it will look at international examples that might be relevant to the experience of Australian farmers.

The project is divided into the following 7 sub-projects (click a link below to download the sub-project RFQ):

Responses to Requests for Quotes for all Sub-Projects are due on 18 March 2020.

The Project is guided by two principles:

First: that no one model or product is going to suit all farming businesses. Rather, agricultural risk management is an issue of coherence; tools and policies should fit together to deal optimally with the type of risk for which they are designed.

Second: public policy should leave as much space as possible for private activity and market solutions. Only in the case of extreme systemic or residual risk, where intelligent on-farm and community risk strategies are beyond their capacity, should there be a role for government risk-related policy.

The Terms of Reference for the Project include, but are not limited to:

  1. Developing an on-farm risk management best practice framework to improve productivity and reduce insurance and finance costs;
  2. Research and Development into a framework for safe and secure data capture that will improve farm risk profiles and better inform risk management product pricing; 
  3. Consultation on enhanced risk protection products and member services through farmer advisory committee workshops and industry advisors; 
  4. Investigation into development of innovative on-farm risk management products which ultimately benefit farmers by reducing insurance costs;
  5. Development of a farmer advisory committee for improved product development.

For additional information after reading the Request for Quotes, please contact Pru Gordon should you have any questions.