Crop insurance products in Australia are basically limited to hail and fire, without taking into account problems such as drought, flood, frost or storm wind damage.

Now, an insurance company claims it is offering a product which will allow wheat producers to insure against either too much or not enough rain for the season.

The YieldShield insurance product offered by underwriting business Primacy is a "named peril" insurance, where growers can insure against either overly wet or dry growing season conditions.

While the product is not perfect for growers – there is only a limited window of opportunity time-wise – it provides another protection option for croppers.

Primacy managing director, Steven Green, said he believed the YieldShield profit was an Australian first in that it was a standalone water-stress product.

“It will be the first time growers can take out water stress insurance as a standalone product without having to purchase hail or fire cover,” Mr Green said.

He said the product on offer was an improved version of previous attempts by the business to offer a water-stress insurance.

“While the product may have been perceived as overly complex in previous years, the 2010 version is vastly improved and simplified.

“Growers do not need to lose their whole crop for insurance claims to be paid.”

The product is designed specifically for growers with a strong risk management focus and allows them to insure against yield loss when a crop does not reach its potential due to water stress, an outcome which often occurs after a good start to the season.

“It’s a valuable tool to manage risk surrounding rain, the one thing that can have the greatest impact on growers’ grain yields, by transferring the risk of lower or excessive rainfall to someone else.”