The member for the South-West region is calling on the government to underwrite an insurance program for crops in Western Australia.

Nigel Hallett says W.A wheat farmers currently have no way of protecting themselves against uncontrollable natural risks.

Crop insurance is already common-place in the United States and Europe where farmers can insure produce against natural risks such as drought, disease, flood, frost and fire.

Mr Hallett says Federal support is needed so a United States company can trial the program in WA.

“They certainly want to trial it in Western Australia first and make sure it’s sustainable and they’ve got it right.

“We have the tick-off from the United States to keep proceeding and I think what we need today is support from the Federal Government.”

Mr Hallett says the proposal is gaining support in Australia.

“It’s in the Federals’ hands at the moment. The Minister Tony Burke has it on his table, the Opposition Leader Tony Abbott and the Shadow minister for Agriculture have copies of it.

“There seems to be bi-party support for it now, something has to happen and we are moving in the right direction with it.”

The Minister for Agriculture Terry Redman says he does not support government underwriting of crop insurance programs.

“It has to be self funded and there are a number of commercial instruments out there now that farmers can used to reduce risk.

“If we were to underwrite something then you can actually undermine some of those instruments that are there now.”

Mr Redman says he has always been an advocate of crop insurance but is concerned that government underwriting will keep out commercial interests.

He says he is also worried crop insurance will make farmers complacent.

“If someone is paying for your insurance then your behaviour changes and I am concerned that farmers might not choose to put in the necessary risk management systems that they should do in order to deal with the inevitable dry seasons that they are going to have.”