2019 FMG Young Farmer of the Year - James Robertson - FMG's Year in Review
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July 2019
2019 FMG Young
Farmer of the Year
James Robertson
FMG’s Year
in Review
Our long-term targets
Page 4
Dairy farm
insurance
Who’s responsible?
Page 5
Sam Whitelock at
Mystery Creek
Page 6 Read this story on page 3
FMG POST | JULY 2019 1
Note from
Chris Black Receive FMG
Post and your
statements by email
You can now choose to receive
FMG Post and your statements
These unique mutual features distinguish by email instead of in the post.
FMG from most other insurance
companies in New Zealand. To change your delivery preference
either call us on 0800 366 466
Over the last year we have continued to or head to the Contact us section
make considerable strides towards the on our website at www.fmg.co.nz
long-term targets set by the board and
We'll just need you to confirm your
management several years ago.
preferred email address.
Achieving 50% rural market share for the
first time is a clear highlight and means
the Mutual can have a stronger voice on Check your junk mail
behalf of rural New Zealand.
As email service providers tighten
In behind this milestone was a year of up their security measures, it
There has been considerable talk record client growth across the board. could mean that some of our
recently about the availability A net increase of 6,752 clients brought emails get labeled as spam. If you
and affordability of insurance the overall number of clients insuring don’t receive an email from us
in New Zealand. There has with the Mutual to nearly 88,000. FMG when you’re expecting one, just
also been a lot of scrutiny of has continued to out-perform the market check it hasn’t gone into your
the conduct and culture in the in terms of net client growth, however, junk mail/spam folder or search
financial services industry here we are mindful it is essential this growth for FMG.
and in Australia, including in is targeted and profitable and not simply
the insurance sector. With our growth for growth’s sake.
mutual model, I think we are 2018/19 was also a record year for the We have plans to extend the reach of our
well placed in both these areas. number of claims we received and online service over the next few years,
dealt with. but given the significant investment this
The ability to take a long-term view is
one of the many benefits of our mutual This year’s good profit result of $19.1m requires, will need to do this in a staged
ownership and operating model. This is a after tax reflected a relatively benign and managed way.
model where the interests of owners and year in terms of storms and other Supporting important initiatives such as
clients are aligned. It is a model which, catastrophes. This contrasts with the Farmstrong and the FMG Young Farmer of
while set up to make a profit, does not previous year where we helped clients to the Year Contest is also enabled by having
seek to maximise profit. It's also a model, recover from seven major storm events a strong financial position. It’s heartening
which is based on an enduring core and the Kaikoura earthquake the year to see both these programmes going from
purpose of ‘giving Rural New Zealand a before. The difference from the last 2 strength to strength and having such a
better deal’. Within the business, we use years to this year reinforces the point that positive tangible impact on the fabric of
the model’s solid set of values every day in the insurance industry, as in farming, New Zealand’s rural sector.
to guide decision making. one needs to take a long-term view.
We strive to keep premium increases to Making a profit allows us to invest in
a minimum so our insurance remains new products and services, such as the
affordable for rural and regional New recent launch of an online service channel
Zealand, acknowledging that having called FMG Connect. At this early stage,
an element of risk-based pricing is an the channel is limited to clients with only
inherent feature of running any domestic risks insured with the Mutual Chris Black
insurance company. (i.e. house, contents and car). Chief Executive, FMG
2 FMG POST | JULY 2019
In October 2018,
300 young farmers from
across 22 districts began
competing for FMG Young Farmer
of the Year Contest. By April, that
number was whittled down to just
seven of the best, who went on to
compete in the Grand Final in
the Hawke's Bay between
4–6 July.
James Robertson is the youngest
person ever to win the contest
James Robertson wins
51st FMG Young Farmer
of the Year
The 2019 FMG Young Farmer of the the Year grand finalists
James Robertson took the title in front of a crowd of almost 700 (L-R) Alex Field, James Robertson, Emma Dangen, Joseph
people in Napier on Saturday, 6 July. Watts, Georgie Lindsay, Alan Harvey and Matt McRae
The 22 year-old Auckland-based business it out in six rounds of agricultural and
graduate has made history after being general knowledge questions.
named the youngest contestant ever to
James won a prize package worth
win the FMG Young Farmer of the Year.
$75,000, which includes a trip to Ireland.
When my name was called Hawke's Bay technical field representative
out I went into shock. I just can't Joseph Watts, 28, took out second place.
believe it, it's a dream come true. He also won the innovation prize, the
It's always been a goal of mine to award for showcasing food production
and was named the most tech-savvy
win this title. contestant.
James grew up on a 200-cow dairy farm in
Waikato vet Emma Dangen, 24, came
the Waikato, is a former FMG Scholarship
third and picked up the award for
recipient and currently works for Fonterra
championing environmental best practice.
in its trade strategy team. Representing
the Auckland City Club, he's proof you don't
have to milk cows to have a career in New
Zealand's multi-billion dollar dairy sector.
"The opportunities in the agri-food sector
James Robertson tackles a practical challenge at the
are endless, even if you live in the city," Hawke's Bay Showgrounds
he said.
James wins the 2019 People’s
Contest overhaul
Choice Award
This year, the 51st contest underwent a
FMG Junior Young Farmer James also won the FMG People’s Choice
major overhaul, designed to encourage
more diversity, include more technology
of the Year Award, which received a record number of
This year saw the introduction votes this year.
and further showcase our country’s food
of the FMG Junior Young Farmer The award was introduced by FMG in 2016
and fibre story.
of the Year (formally TeenAg). to give the finalists experience around
The Grand Final Secondary school students from marketing themselves in the sector and to
This is a full-on two-day event including seven districts competed in teams encourage the public to get more involved
head-to-head competition plus technical of two, tackling similar modules to with the contest. James did a stellar
elements, such as an innovation project their older members. The winners job, showcasing his skills on his contest
and interview challenge. The contestants were Finn Beamish Facebook page, alongside his billboard,
must also deliver a convincing speech and Matthew which had pride of place outside of
on a topic given to them just a few days Halford from Napier Auckland. For winning he received a
beforehand. The last challenge is the Boys' High School. $2,000 travel voucher and $1,000 for his
infamous quiz, where contestants battle local club.
FMG POST | JULY 2019 3
50%
Rural market
#1 share
2018 $257m
ANZIIF Direct In Capital
Insurer Awards
Finalist
Reserves
($238m 2017/18) Our new online
service
$19.1m
Profit after tax Launched in May 2018, FMG
($12.1m 2017/18) Connect provides eligible clients
the ability to access and manage
$18.7m 573 their insurance online—anytime
Increase in Net Industry and and from any device.
Claims Cost community
($10m 2017/18) events Who can use FMG Connect
Our approach is to start small and learn as
8% we go. Currently, FMG Connect is available
Net Client for clients who:
Growth
(6% 2017/18)
• have one account with FMG
• have only one policy with FMG for
either a Domestic Vehicle, Contents or
FMG’s Year in Review
House cover, or a combination of these
three covers.
As we continue to develop and expand
The ability to take a long-term view is one of the many benefits FMG Connect, access will be offered to
of our mutual ownership and operating model. Over the last more clients.
financial year we have continued to make considerable strides How to register
towards our long-term targets. When you are eligible, we will send you
an email invitation to register for FMG
A solid profit Record number of claims
Connect. If you don’t respond by the time
Financially it was pleasing to post a During the financial year our Claims team your registration link expires, don’t worry,
$19.1m net profit after tax. This is a received and settled a record number just follow the instructions in the email to
reflection of a more settled year in terms of claims. Settling claims effectively be sent a new link.
of major storms and catastrophes, is the proof point of insurance and an
compared to the previous 2 years. important part of helping people get Current online features
During that time most major insurers back on their feet when the unexpected • View and adjust House cover.
dealt with an unprecedented number of happens.
major storms and catastrophe events. • View and adjust Contents
Investment in online
On the back of this, our capital reserves cover.
Making a profit allows us to invest in
are also up to $257m.
new products and services, such as • Add and edit a vehicle,
Achieving 50% rural market share the recent launch of an online service including guidance on typical
Having half of New Zealand's farmers channel called FMG Connect. This new market values for similar
and growers insured with FMG, is a clear service will provide you more choice and types of vehicles.
highlight and means the Mutual can convenience in terms of interacting with
have a stronger voice on behalf of rural the Mutual to manage your insurance • Claim for electronic items under $5,000.
New Zealand. It also reflects the value when it suits you and from any device. • Windscreen claims for vehicles with
people see in a mutual insurance model. Comprehensive cover.
At this early stage, the channel is
• View open and closed claims
Record net client growth focused on supporting clients with
for Vehicle, House and
FMG has continued to out-perform the domestic risks insured with the Mutual.
Contents covers.
insurance market in terms of net client Essentially house, contents and car. We
growth. We had a net increase of 6,752 will be extending the reach of our online • Edit personal and account
clients, which is an 8.3% increase from service over the next few years in a contact information,
last year. staged and managed way. including choosing to receive
statements via email.
Alongside the strong growth we have Backing our communities
also worked hard to ensure we meet We continue to support rural • Cancel cover for your vehicle,
the needs of existing clients. We were communities. During the year we contents or house.
pleased to see new highs for client were involved with 573 industry and
satisfaction on the back of this. community events around the country.
4 FMG POST | JULY 2019
Dairy farm insurance
Who’s responsible?
Something we’re often asked with regards to the farm owner/
sharemilker relationship is, who’s responsible for insuring what?
Traditionally, the insurance needs for It also makes a difference when making a
owners, contractors and sharemilkers claim as working with one insurer makes Fonterra’s new milk quality
are the same: domestic contents, farm the process simpler. There is a lot less penalties
contents (especially milk), implements, friction working with one person (who For those who are dairy members
farm vehicles, business interruption already knows you), rather than dealing supplying Fonterra, you would have
and liability. Farm owners have the with multiple insurers. noticed some changes to your terms of
added responsibility of insuring their supply this season. Part way through
farm buildings, irrigators and employee Example the 2018/19 season, Fonterra introduced
housing. demerit penalties for milk quality
A sharemilking client had a relating to the Fat Evaluation Index (FEI)
Your contract should be reflected
worker who accidentally hit test. Fonterra has also introduced a
in your insurance policy
a Pivot Irrigator. The farm performance management framework for
Ultimately, it comes down to what your owner had this insured with the 2019/20 season.
contract says, but in most cases there another provider and due to the
are going to be a lot of shared risks, difference in policy response Cover for penalties
particularly around liability and business there was a significant difference What's important to note is that neither
interruption. in how the claim was settled. of these penalties are covered by FMG’s
In our experience maintaining business There was also confusion Milk Spoilage and Contamination policy,
continuity is one of the biggest things between the farm owner and the as they are not sudden and unforeseen.
that farmers worry about. Unfortunately, sharemilker as to how this was This policy does still cover you for
it’s often when making a claim they to be insured. All the while, the demerit penalties received for sudden
realise there were gaps in their cover, business was down an irrigator and unforeseen contamination events.
because their contract wasn’t reflected in leading up to peak season. For example, inhibitory substances and
their insurance policy. rejection of milk by Fonterra for spoilage
We’ve found that when your (temperature).
Issues with dealing with multiple sharemilker or contractor also
insurers has their insurance with FMG, For advice and tools to help prevent
We also see a lot of duplication and any claims that arise on the farm milk quality issues to your business
farmers being over-insured or paying can be sorted so much faster. this season, please visit our website
premiums for things they didn’t This means everyone can get www.fmg.co.nz and head to Milk
necessarily need to, because different back to business with as little Contamination under our Advice
insurers have varying levels of cover hassle as possible. section. Alternatively, call us on
within their policies. 0800 366 466 or email
contact@fmg.co.nz
Working with the same insurer is one
If you would like a personalised For more information on reducing your
of the best ways of avoiding this, and
conversation about your on-farm or FEI risk, please call your local Fonterra
we’re seeing more and more clients refer
contractual insurance risks, give us a Area Manager.
their contract or sharemilkers to us for
call on 0800 366 466.
this reason.
We’re now automatically covering
bulls up to $50,000
FMG has been supporting bull breeders and buyers for years, providing market
leading cover from the fall of the hammer at all FMG exclusive Bull Sales.
To make sales day even simpler, we’ve increased our automatic cover limit.
All bulls sold at FMG exclusive Bull Sales with a purchase price of up to
$50,000, will automatically receive 14 days free specified livestock cover
(including transit and infertility), which can be extended to 1 year for 6.5%.
For more information check out www.fmg.co.nz/bulls
email bulls@fmg.co.nz or give us a call on 0800 366 466.
Please note this is only a summary of FMG products and services and is subject to our specific product documentation and underwriting criteria.
For full details, refer to the relevant policy wordings at www.fmg.co.nz
FMG POST | JULY 2019 5
www.farmstrong.co.nz
Farmstrong Ambassador
Sam Whitelock
reminds farmers
that they are the
number one asset
on their farm
At this year's Mystery Creek Fieldays, Sam’s top tips on managing
Farmstrong focused on the importance stress
1.
of investing in your wellbeing when times
are good, so when things do get tough Treat yourself as your
you have something to draw on. When farm’s number one asset.
you are under the pump this helps you get Make your health and
through. wellbeing a business
2.
priority.
No one can be under pressure Build rest and recovery into
all the time. Pressure is a your daily and weekly work
good thing but only the right schedule. All top sports
Calving season
amount. That right amount will teams build in downtime
because no-one can go Calving season can be a very demanding
change depending on what’s 110% all the time without time. Here are a few tips on getting
happening—whether you’re a break. through.
3.
tired, you’re eating well or you’re Put the right fuel in the tank
Prioritise during busy
sick. If you’re healthy then your times. What are the top two • Cook once, eat twice. Make a big batch
farm will be healthy. It’s as tasks you need to work on of mince, save half and use for Mexican
simple as that. today? Once you’re feeling wraps the next night.
back in charge your stress
Sam Whitelock, levels will go down. • Make slow cookers and freezers your
4.
Farmstrong Ambassador friend.
Look after the basics. Eat
well, get enough quality • Keep your water levels high.
Industry representatives enjoyed a sit-
sleep, keep active and get Dehydration affects your body and
down lunch with Sam, where he spoke
‘farm fit’ for busier periods. your mind.
about the importance of focusing on the
things you 'can' control.
5. Talk to mates and stay
connected. Others have
been there and everyone
• Eat small and often. Take nuts, seeds,
rice crackers and fruit out with you to
snack on.
needs support. If you’re in • Include protein foods (meat, eggs,
a relationship, talk things cheese, yoghurt, milk, nuts, legumes,
through together. fish or chicken) at each meal to keep
6. Get off-farm and do the
stuff you enjoy—hunting,
fishing, team sport,
your blood sugar levels constant.
Schedule in mini breaks
Take mini breaks during the day. Not only
kids’ sport, horse riding, does it help when dealing with physically
contributing at community and mentally demanding jobs, it’s actually
events—whatever helps a more efficient way to use your time.
you recharge. Take a good 30 minutes a couple of times
7. Think in ways that keep
things in perspective and
that help boost your mood.
during the day to refuel, stretch out your
back and get your heart rate down. You’ll
notice the difference towards the end of
the day.
Farmstrong is a rural wellbeing programme that aims to help farmers, growers and rural families live well to farm well.
To find out what works for you and ‘lock it in’ check out our videos, stories and tips on www.farmstrong.co.nz
6 FMG POST | JULY 2019
Stay fire safe this winter Tips on being fire safe
Winter has arrived and so has the need to keep • Fire ashes can stay warm enough to
warm. We’ve found fireplaces account for almost reignite for up to 5 days. Store them
20% of all house fire claims. outside in a metal bucket and pour
water over them before disposing.
• Use a fireguard or spark-guard when
using an open fire.
Rural properties are most at risk
• Avoid overloading powerpoints with
This risk is especially true for rural
double adapters.
properties, which are twice as likely to
use wood fires. What’s more, the damage • Check the cords and plugs on dryers
caused by rural house fires is often worse as well as smaller appliances like
because of the extra time it takes for heaters and electric blankets that
emergency services to arrive. have been in storage.
• Check your smoke alarms are
Electrical faults
working in your home and your
The risks from using electrical heating employee/tenanted properties.
appliances are just as significant. We’ve
found a high percentage of house fire
claims are from electrical faults. To learn more about the causes
of house fires and advice on how
Check your smoke alarms Access for emergency services to reduce fire risks, check out
Fire and Emergency New Zealand has If you live on a rural property it’s worth our House Fires Advice Guide on
found that in 80% of house fires they’ve checking that your property has suitable our website or head to Fire and
attended, smoke alarms were either not access for emergency services and that Emergency New Zealand's website.
properly installed or not working. your Rapid Number is clearly displayed.
Winners
of our ‘Tips for
Rural Living’ draw
Your tips for rural living Congratulations to the following
FMG clients: C Mayo, A Trainor,
In our March edition we asked our readers to send us their top L Flowers, C Edward and
tips for living rurally. Thank you to all of you who’ve sent some in. F Moorhouse—who each won a $50
We’ve really enjoyed and appreciated your insights, humour and Farmlands voucher for sending in
your different points of view about rural living. Here are some of a tip and entering the draw in
the tips we received.* our March FMG Post.
Time management Be prepared • Source trees from similar conditions or
• If you’re going in to town, combine • Have a little of everything on hand like climate as yours, to make it easier for
several jobs at once saving on time powdered milk, a spare meal in the them to adapt to their new home.
and fuel. freezer and always have at least one Stay connected
full petrol can. You don't want to be
• Lifestyle block living is very enjoyable, • Keep in touch with your neighbours and
running into town for little things as
but it does have its challenges. Don't put your local community.
it gets expensive.
jobs off, take care of things as soon as The ‘Good Life’
possible otherwise it all mounts up and • Invest in good wet weather gear—
• Get the kids involved. Include them in
will bite you when you’re unable to deal you get what you pay for.
as much farming activities as you can—
with it.
Fauna and flora they love spending time with you and it's
• Just focus on one [big] project at a time • If you have animals you’ll have to deal great learning for them.
to avoid getting overwhelmed and to with sickness, injury and perhaps death.
• Peacefulness. Relaxation. Beauty.
ensure completion. Make sure you are prepared to deal with
Neighbourly. Quality of life. Unique way
these situations or have support so that
• Take time to look at what you have done, of life. You've got to love the country.
animals are not left to suffer.
not just what needs doing.
*These tips have been sent in by FMG clients and are not necessarily the views of FMG.
FMG POST | JULY 2019 7
Home
Policy changes Household
Policy Wording
TermsCo
di ng
policen
of ournt
ts
y to cover a home
Policy Wor
During the year we review client feedback and market changes and, cy to coveirc
Terms of our poliVeh
hou esld contents
lseho
r F a r m
where necessary, make changes to our policies. io
Super Wording
Pol i c y
Before your next policy renewal date This has been done to make setting up ve (Sup
erior)
ehensi
compr hicles
of our
you’ll receive information from us titled and renewing your policies easier and to Terms cover farm
polic y to
ve
Understanding your insurance changes, help ensure you don’t have gaps in cover.
explaining all the changes we’ve made.
EQC changes
In the meantime, you can view details
EQC has altered the way it provides
of all our policy wordings and changes
Natural Disaster cover on your House
on our website at www.fmg.co.nz/
and Contents policies.
policywording
There are four key changes.
Here is a summary of some of the key
changes. For full details please refer to 1. An immediate extension of the
the documentation mentioned above. timeframe for lodging a claim from
Written in Plain English 3 months to 2 years.
It’s really important to know what you’re 2. EQC has the scope to share property
covered for. To help with this, we’ve related information, as necessary,
re-written all our policy documents to settle insurance claims.
into what’s commonly referred to as
3. Removal of the $20,000 EQ Cover for
‘plain English’ so that they are easier to
contents from 1 July 2019.
understand. We believe in being as open
and transparent as possible, so want our 4. An increase in the capped limit on Stay tuned
policy material to reflect this by being EQC residential building cover to We'll soon be publishing two
clear and easy to follow. $150,000 plus GST from 1 July 2019. reports that may be of interest
to you. The reports are called
Breakdown changes EQC will continue to insure residential the Future of Farming and Growing
We’ve updated how we insure your buildings and land, although it will no in New Zealand and the Future of
Breakdown damage at FMG. Cover that longer provide cover for contents. Insurance. They will be available
was previously provided under our Further information about the EQC on our website for reading and
Breakdown policy is now automatically changes can be found on their website comment at the end of July.
covered under your Farm Building, Farm at www.eqc.govt.nz/act-changes
Contents, or Material Damage policies.
Calendar
31 July–2 August 23 August 1–2 October 18 October 13–15 November
HortNZ Young Grower of Massey Agricultural NZ Agricultural
FMG AGM
Conference the Year Final Awards Show
Balclutha
Hamilton Tauranga Palmerston North Christchurch
Call us on Email us at
0800 366 466 contact@fmg.co.nz
Write to us at Visit our website
PO Box 1943 www.fmg.co.nz
Palmerston North
4440 FarmersMutualGroup
8 FMG POST | JULY 2019
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