The water stress insurance product, YieldShield, was launched recently by crop insurance specialist, Primacy Underwriting Agency, and is underwritten by Allianz Australia Insurance.

Steven Green, Primacy managing director, says the long-awaited water stress cover has been made possible by a three-year collaboration with Australia’s leading agricultural production researchers and crop modellers at the Agricultural Production Systems Research Unit (APSRU) in Toowoomba, Qld.

Mr Green says NSW wheat growers have a small window of opportunity to take out the insurance which will be available until 17 July. The product is also available to NSW and Queensland sorghum growers in summer.

"The benefits to growers of this innovative insurance product include being able to insure against insufficient rainfall or waterlogging for the first time," Mr Green said.

"It is not about insuring against drought – it's a risk management tool that allows growers to insure against yield loss when a crop does not reach its potential based on rigorous shire-based crop forecasts models."

Mr Green says crops must have reached first jointing stage in wheat or the five-leaf stage in sorghum and the simulated yields assumes crops have been planted into ground which has been fallowed over the previous season.

"It takes into account rainfall both pre-planting and during the crop growth phase and in the event of a claim an agronomist must confirm a yield loss due to insufficient rainfall or waterlogging," he says.

Mr Green says YieldShield is the result of several years of collaboration between Primacy and APSRU and is a logical and innovative application of cutting-edge crop modeling technology.

APSRU is considered a centre of excellence in the field of agricultural production systems research with the capability of pursuing related world-class research and training.