Producers have been made aware of the risks of foot and mouth disease and given an insight into the huge financial impact of a potential outbreak, but it has become apparent that there are very few options available in terms of herd insurance.
Insurance broking company Ausure Securus Brokers released an article highlighting the limited options available to producers in terms of livestock insurance in the case of a foot and mouth disease outbreak.
"There's not much in the way of protection for our communities and our farmers in the event that an outbreak was to take hold, particularly in North Queensland, it would almost be more devastating for us than even the floods that we suffered back in 2019," director of Ausure, David Reid said.
"There's nothing really around insurance protection in place to protect farmers and their families, but it's also about communities that rely so much on the farmers and those that support the farmers.
"I think it's an $80 billion cost over 10 years to the impact to the Australian economy financially.
"Now, that's substantial, and whilst that is a big number and the effect on our economy would be huge, I think it's the personal toll that our individual farmers and their communities suffer. That can't be measured in financial terms.
"What is the contingency plan that the industry and government are considering in the event that something was to happen?"
Mr Reid said that the company was hearing regularly from producers who were concerned about the lack of options available to them which would offer adequate financial protection in the case of an outbreak.
"These are the conversations that happen frequently with farmers, whether or not it be cattle, sheep or goats, right across Australia.
"Our colleagues have these conversations every single time as they review the insurance programs with the producers themselves.
"There are circumstances where we are able to obtain insurance coverage for breeding stock, for instance, bulls that are of high value, we are often asked to insure those, but not the broader herd."
Given the inevitably disastrous impacts of an outbreak, Mr Reid said it was likely insurance companies would baulk at the idea of offering full herd protection.
"They would be very lucky if they could obtain insurance protection for livestock against these sorts of diseases," he said.
"It's more so the lack of appetite from insurance companies in both the Australian and overseas markets to really want to take on those sorts of risks.
"Apart from biosecurity, there's few other ways of combating widespread infection, so when an insurance company evaluates risk, they look at the probabilities of infection, not only hitting Australia, but then spreading from property to property and so on."
Mr Reid suggested that the government was relying on the "cold comfort" of biosecurity to combat outbreak, but possibly not looking at how to handle the financial fallout if the disease was to spread throughout Australia.
Queensland Country Life approached the Department of Agriculture and Fisheries to ask what the government would recommend producers do to financially prepare for an outbreak of FMD, considering the limited insurance options available.
A spokesperson for DAF said that it was critical that livestock owners know what FMD looks like, and that they check their animals regularly, offering advice mainly regarding biosecurity.
"All livestock owners should have stringent biosecurity measures in place on their property, including accurate records of people and livestock movement onto and off the property," they said.
"Livestock owners are encouraged to document these biosecurity measures in a biosecurity management plan and provide a visual reminder with biosecurity signage at property entrances. Information on biosecurity planning is available from the national Farm Biosecurity website.
"As with all decisions relating to operating of their business, the Department of Agriculture and Fisheries encourages producers to seek appropriate advice about insurance."
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