AFM Board Policies

Surplus of Funds

The members use their combined resources to fund Aussie Farmers Mutual Farm Income Protection and its running Surplus funds (calculated as funds remaining after payment of claims, overheads and expenses) shall remain in the fund to build resilience for further years. No dividends or payments to members shall be made until such time as the Board determines that the Mutual is sufficiently capitalised to provide reasonable assurance of meeting future claims without outside assistance or reinsurance, in order to ensure sufficient future security for Mutual members.

Claim Shortfalls

In the event of claims in any one cropping year exceeding available funds in the Mutual, all claims shall be subject to a 10% Deductible. In the event of further shortfall, claims shall be subject to a further proportional adjustment as determined by the Board to ensure continued solvency. In the event of such “proportional adjustment event”, the Board has resolved that shortfalls from such further proportional adjustment applicable to “five-year members”, shall be carried forward into the subsequent year for consideration for payment from any surplus therein (to be calculated following payment of claims applicable to that cropping year). Shortfall payment considerations may be rolled forward for up to four years, but remain at the discretion of the Board at all times.

Establishment Sub Limit

You must be able to demonstrate that Your Protected Crops have reached satisfactory Germination and Establishment prior to July 25th.
In the event that Germination and Establishment has not been or cannot be shown to have taken place to a satisfactory extent, we will not provide Protection above $180/ha. In any event, if Latevo Crop Monitor (LCM) does not report an EVI (Enhanced Vegetative Index) Value of 0.14 or greater for all Protected Crops which are wheat paddocks, Protection will be limited to $180/ha.
In the event that Your Protected Crop has established but the EVI Value reported by LCM is less than 0.14, You may request an individual field inspection at your cost which we will reconsider at our absolute discretion.