Report Suggests Lower Crop Losses Should Mean Lower Insurance Costs

All signs point to lower crop insurance premiums for farmers in the U.S. – especially in the nation’s Corn Belt – according to an Iowa Ag Review report in its Fall 2009 issue. Through analyzing trends in corn crop drought tolerance in its “Drought Tolerance and Risk in the U.S. Crop Insurance Program” report, it looks like the current risk to American crops is low enough to no longer justify current crop insurance premiums.

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Crop insurance companies earn excessive profits at taxpayers’ expense

U.S. crop insurance companies, especially those subsidized mainly by tax dollars, are doing quite well from their perspective—revenue is skyrocketing.  (more…)

Unique Grapevine Coverage Draws National Attention

Live Asset Insurance earned some major industry visibility and credibility when it was featured recently in Wines and Vines Magazine’s December 2009 issue. The piece focused on the services Live Asset offers, as well as the reasons growers should strongly consider the grapevine insurance Live Asset provides.

 Shortcomings In Federal Crop Insurance Plan Demands More Options

Live Asset Managing Director David Teed was interviewed for the Wines & Vines article as the leading expert in the grapevine insurance industry.

“The company focuses on protecting perennial crops — not just vines but also trees, shrubs and other plants at locations such as parks, orchards, tree farms, golf courses and even zoos. It covers the trees at the San Diego Wild Animal Park, for example, and also covers Christmas tree farms.

David Teed, managing director of Live Asset Insurance, says the company recently targeted winegrapes as well. “Government crop insurance covers grapes and raisins, but not the vines themselves. They had a pilot program in Napa Valley to cover vines, but realized they weren’t allowed to compete with private industry, so they backed off.” He claims that his service is unique.

Teed adds that the insurance companies that protect wineries typically avoid exterior assets or set very low limits on coverage; in fact, the company is now receiving referrals from some of these insurers.”

Find More Information On Live Asset’s Vineyard Insurance

Check out the full article at the Wines and Vines Magazine website and be sure to learn more about vineyard insurance from Live Asset.

Wholesale Plant Growers, Retailers, Distributors & Others Have New, Crucial Insurance Options

ANLA’s – or the American Nursery and Landscape Association – endorsement of Live Asset Insurance means good news and great options for the nursery industry, including wholesale plant growers, and for the landscape industry.

This new partnership is quite simple. Live Asset offers coverage for nursery, greenhouse, landscape and retail plants against extreme and damaging weather occurrences. ANLA is a group of thousands of green-industry businesses left to self-insure for natural disaster damage or left to rely on the federal government’s crop insurance program that isn’t able to provide full coverage. (more…)

The popularity of starting vineyards is growing, as should the protection provided these start-ups

The number of celebrity vineyards that are popping up all over the world is growing as process of growing grapes and making wine grows in popularity.  Actors, directors, and even politicians are using a part their substantial incomes to open up their own “grape-stomping grounds,” and some are actually achieving quite a bit of respect from many people within the wine community for the quality of their output—and not just for the celebrity-factor.

Vineyards require a great deal of investment of both time and money, and it’s worth taking look at the famous names that have done a fine job with the allocation of each.

A Rundown of a Few Top Celebrity Vineyards and Their Locations

Mario Andretti – The winery of this Indy/Daytona 500 victor (Andretti Winery) is located in the Oak Knoll portion of Napa Valley, California, and is well known for its pinot grigio, merlot, and chardonnay.  It spans 42 acres and, along with being quite a sight unto itself, boasts a large wine club membership; a significant roster of special events; and frequent tastings. 

Sam Neill – Sam Neill received a significant boost to his fame with his role(s) as Grant in the Jurassic Park films, and has since obtained a similar benefit with his notable efforts toward his vineyard Two Paddocks, located in the Central Otago region of New Zealand.  Though now expanding, Two Paddocks has for quite some time been known for its pinot noir and ecological friendliness.

Francis Ford Coppola – Well known for his capacity for filmmaking, Francis Coppola is also quite the wine connoisseur and owns a reputable vineyard entitled the Rubicon Estate in Rutherford, California.  He has owned the property for over 20 years and, from what many well established authorities report, has improved dramatically thanks to Coppola’s fastidious efforts.  Like Andretti above, Coppola’s winery features a wide range of features for wine buyers and functions as a prominent attraction of the area.

With more and more of the wealthy population pouring their capital into developing wineries, it is apparent that there are burgeoning risks.

All Vineyards Need Protection, Even Celebrity Vineyards

Burning through capital needlessly for disasters and mishaps that could have easily been covered by our vineyard insurance is frustrating and inconvenient, even if you have a ton of it. The visibility of celebrity wineries and the growth the industry demands that viable protection exists in the event of damage to the vines and infrastructure of a vineyard. Live Asset is the pioneer and the leading expert in the field.

Check out our recent blog posts on vineyard start-up costs; how to protect your vineyard investment; and a recent report on starting a vineyard.

Vineyard Establishment Costs can be thousands of dollars per acre

In our last post, I talked about the multi-year gap between starting a vineyard and having government-subsidized crop insurance kick in to protect your vineyard investment. Live Asset Insurance offers protection for those vineyard start-up costs that would otherwise be left exposed to potential disaster.

One of the examples given to attempt to quantify vineyard establishment costs was the seemingly endless variety of products offered by a company like Orchard Valley Supply. Purchasing the infrastructural materials they offer would costs thousands on their own, not to mention the cost of acquiring land; getting that land into growing condition; installing things like trellises and irrigation system; and more.

So what would be typical vineyard establishment costs?

The real answer is, “It depends.” But that would make for a very short blog post.

It really does depend on many factors – size of land, geographic location, desired production amounts, etc. The folks with the Arizona Wine Growers Association posit the following:

The capital requirements needed to become successful in the wine business depends on ones goals. The cost can range from as a few thousand dollars for those who own an acre of vines and sell their grapes to a winery, to millions of dollars to develop vineyards, a winery and market a brand of wines. The Per-Acre cost of bring a vineyard into production is estimated at between $6,000 and $15,000. It will take 3-5 years for grapes to mature enough to be used in wine production. There are additional cost for land, equipment, machinery, staff, consultants, marketing and other expenses.

Just to reiterate – that between $6,000 and $15,000 per acre to get a vineyard into production.

So, For A 15-Acre Operation, The Vineyard Start-Up Costs Would Be Significant

The AWGA also created a draft of Vineyard Investment Costs for a 15-acre vineyard with 10 acres in production.

According to their numbers, nearly $300,000 later, you’d have yourself 10 acres of productive vineyard. Now, remember that the first three to five years of that time, your investment is not eligible for coverage under the federally-backed crop insurance programs. That would leave you with hundreds of thousands of dollars invested with no protection.

Vineyard Start-Up Costs Are Too Big To Leave At Risk

Now that you have some sample numbers to ponder, the need to protect what you’ve purchased becomes too clear. With the vineyard insurance that Live Asset provides, you can protect your sizeable vineyard investment during a vulnerable period. It wouldn’t make sense not to protect the future of your vineyard.

Buying Or Starting A Vineyard Costs Big Bucks

Undoubtedly, if you are thinking of buying a vineyard or creating one from the ground up, the challenges are many and a vineyard investment is a huge one indeed. Of course, that shouldn’t deter you. But, a realistic estimate of vineyard costs should be the crux of your vino-venture.

The Real Investment Cost & Risk Of Starting A Vineyard

In our last post, we focused on a University of Arkansas report discussing considerations for starting a vineyard. That report fell far short of incorporating all of the costs, most notably vineyard insurance.

However, even protecting your vineyard assets with insurance is not a cut-and-dried prospect. Did you know that the time between starting or buying a vineyard and the time it starts producing certain amounts of viable grapes, your assets are not eligible for coverage under the federally subsidized crop insurance program?

The investment required to create a vineyard is hefty, so the protection provided to your investment should be thorough.

In other words, say you start a vineyard and purchase all the land, labor and equipment needed to start growing grapes. Until your vines start producing a certain tonnage of grapes, all of those assets – all of that vineyard investment – is left uninsured against potential destruction.

That’s Three To Five Years Of Vineyard Costs Left Exposed To Risk

On average, it takes three to five years for a start-up vineyard to produce viable grapes. During that time, all of the infrastructure and the costs associated with installing that infrastructure are waiting to be destroyed. It’s a bit of a grim statement, but the stakes are that high.

Take a look at Orchard Valley Supply, one of the top suppliers of things like trellises; stakes; harvest supplies; irrigation equipment; and too many other products to list. A healthy vineyard investment would consist of thousands of dollars of equipment from a place like Orchard Valley Supply, in addition to land purchase (if applicable); labor and equipment to get the land in growing condition; irrigation; quality rootstock; and more.

We’ll cover the costs of starting a vineyard in more depth in our next post.

The point is that all of this time and capital invested in creating your vineyard will not be protected through crop insurance programs until your vines start producing mass amounts of grapes.

And that’s where Live Asset Insurance can help you avoid the risk of potential destruction of your vineyard investment. We are the only firm to cover that vital vineyard infrastructure until the federal crop insurance kicks in. We effectively protect your vines and their life support system from in the event that they are destroyed or damaged by natural occurrences – like wild fires, for example.

Live Asset Insurance Coverage Protects Your Vineyard Investment

The first three to five years of the life of your vineyard is crucial for future success. It is truly the infancy of your venture. Leaving the future of such a huge investment to the whims of Mother Nature doesn’t make financial sense. That timeframe of risky exposure for your vineyard is unnecessary when Live Asset can provide protection during those vulnerable years.

Figuring out how to start a winery must include a look at winery insurance

At Live Asset Insurance, we are used to explaining our unique insurance coverage to brokers and owners themselves. When it comes to vineyard insurance, we educate people on where government crop insurance drops the ball; where traditional coverage falls short; and how our coverage picks up the slack. 

Our vineyard insurance covers the live assets, vines in this case, and supporting systems like trellises and irrigation systems. (more…)

Northern Central Park Won’t Be The Same After August Storm

Regions of northern Central Park were heavily damaged by an intense storm that moved through the area on August 18^th, 2009.  Although the period of time in which the storm was at its worst is considerably brief (about 30 minutes), the amount of destruction left in its wake is truly immense.  More than a thousand trees sustained wind damage, and more than 500 required removal due to Central Park storm damage. (more…)

What is the Federal Reforestation Credit?

The federal tax credit for reforestation is one of the best tax breaks available to landowners.  It allows qualified property-owners to claim a 10-percent reforestation tax credit up to $10,000 for expenses associated with planting trees.  In addition, forestation costs up to this limit may be deducted over a period of 7 years.  This reforestation tax credit amidst recent carbon market legislation brings about questions for tree farmers and landowners on how to best take advantage of this growing carbon offsets market? (more…)