Rural Insurance?

Message / Question

Dr Dave, I don't understand how you can buy insurance against a drought. I mean, there's no produce... You said that it was only available to the larger players. Given that you use to be a rural pastor, what that person is talking about?

Response:

The “insurance” that he appeared to be talking about was not buying a policy form a company to insure against drought, it was about buying futures, contracting to sell produce/animals in the future at a price lower than the present price – thus insuring a guaranteed price for your product should there be significant price falls in the future. It’s a form of “self insurance” – you sacrifice a bit today in order to benefit tomorrow. In order to do that, however, you would have to have enough assets to see you through; but it could be done. However, regardless of what MAY have been possible in the past, we have to realistically face the present. “If only” are two words that cause little but grief – “if only I had done this or that, everything would have been different”. The reality is, you cannot change the past – it over and gone. Whilst we may, and should, learn from the past, the blame game never accomplishes anything worthwhile. What could have or should have or might have is really quite irrelevant. What IS relevant is the crisis that faces so many people in rural Australia. A prolonged drought and an unfavourable economy have devastated many individuals and families in rural Australia and caused many to determine that their situation is hopeless – and the consequences of that have been horrendous across the nation. The only hope that I see for our nation is a true revival of Christian faith, only that can make the South Land of The Holy Spirit truly be the GREAT South Land!