Cutting the risk to cut costs

In the light of today's agricultural subsidy changes, farmers who are looking to cut their costs are being urged to consider risk management which in the longer term could save them money.

Risk assessment is undertaken on a regular basis by other commercial businesses and now one of Borderway Insurance Brokers' farm insurers has taken the lead and incorporated an assessment into its portfolio.

"Livestock farmers are once again having to look closely at their costs however, cutting costs could potentially create hazards on the farm," said Borderway Insurance Brokers director Andrew Cuthbertson. "With reduced labour on farms, people are having to work longer hours and if they are tired they do not take so much care. "There have been a number of incidents in the region this summer where farmers have died in accidents on the farm.

The self assessment guide used by one of our farm insurers talks farmers through what measures they currently take - and those they don't."

The assessment looks at areas which include:

• Maintenance contracts on equipment such as grain driers and milking parlours
• Regular farm electrical inspections
• Having sufficient numbers of fire extinguishers
• Anti pollution measures such as bunding of diesel tanks and that effluent and dirty water systems are working correctly
• Ensuring that drivers of tractors, handlers and ATVs have received relevant training
• The availability of protective clothing
• Has the farm got a nominated first-aider?

Mr Cuthbertson said: "It is to try to make farmers more aware and once they have demonstrated that they are undertaking risk management practices it could have a long term impact on reducing their insurance spend and keeping their fixed costs under control - as well as, more importantly, helping to save lives." Mr Cuthbertson also gave an example of a farm diesel tank which ruptured, polluting his land, an incident not automatically insured for.

The Environment Agency became involved and the farmer was faced with a five figure sum to remove the pollution. The risk assessment form is completed with the farmer client by Borderway Insurance Brokers staff who can also arrange for inspection and other work to be carried out.

Andrew Cuthberton can be contacted through Borderway Insurance Brokers' offices in Carlisle on 01228 640910 or Penrith telephone 01768 899199.

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