What does this cover?
Only the contracted beet CTE is covered for losses caused by an insured frost event, provided adequate area is planted. If the area planted multiplied by the grower’s five-year average yield is lower than the contracted tonnage, then the insurer will only cover this lower insured tonnage. For growers that have not grown sugar beet for over five years, cover will be based on the factory five-year average yield.
What does the cover relate to and what are the conditions for paying out?
The cover is designed for early and severe frosts, such as those experienced in 2010/11 when a damaging frost event occurred early in the season. The insurers have defined a severe frost event as the average minimum temperature of -4°C or lower for a rolling 10-day period up to and including 30 January.
Once a ‘trigger’ frost event has occurred, pay-out under the policy for each beneficiary will be calculated following the end of the campaign. British Sugar and NFU Sugar will deal with the claim and British Sugar will ensure payment is made to your nominated bank account once the claim has been processed.
Pay-out calculation
In order for a pay-out to be made, the farmer has to have incurred a loss that is higher than the deductible which is set at 15% of the Insured (Approved) Tonnage. This is in order to filter out the natural and normal volatility in yield. This deductible should avoid potential for many small losses and reduces the administrative costs and the insurance premium.
A yield loss of 15-30% will be paid at the grower’s applicable contract rate. A yield loss of more than 30% will be paid at 50% of the full applicable contract value.
Is this a voluntary scheme?
I always lift my beet and deliver it before the risk of frost occurs, so why do I need insurance?
The scheme would only be operated by the insurers if all growers participated. As risks of campaigns are spread by some growers delivering late, allowing others to deliver early, then NFU Sugar considers it reasonable for all growers to participate in the scheme and the policy has been designed on this basis.
Does the policy only cover beet which has not been lifted?
The cover payable in the event of a frost occurrence will be calculated on the total beet not delivered by the end of the campaign under your contracted tonnage CTE. There is no requirement for losses to have occurred in the ground only, and stored beet is also covered.
Equally, once the frost trigger has been reached, any damage from subsequent frosts, in the same campaign, will also be covered.
How is the cost of insurance covered?
NFU Sugar has contracted the insurance using NFU Mutual to administer the scheme. British Sugar pays the premium with no cost to growers.
What happens in the event of a drought or non-frost event occurring?
The insurer has the right to reduce or increase yields to take into account known events.
The loss adjusters will review relevant facts about this campaign.
If I opted for Yield Protection on my 2025/26 crop, will this affect my eligibility for frost insurance?
No – frost insurance is entirely separate to the Yield Protection option offered. Regardless of whether you opted for Yield Protection, your eligibility for frost insurance will be unaffected.
However, it is not possible to claim twice. Any payments received by a grower pursuant to the frost insurance policy will be deducted from any compensation paid or payable to a grower under the Yield Protection scheme.
Key things to know:
- The policy will trigger for everyone if any one of the weather stations listed hits the required temperature. These are Marham, Wattisham and Waddington.
- You do not need to prove that yield losses were caused only by frost or separate out causes. If the policy triggers and you are eligible for payment, you will be covered based on tonnes delivered.
- If you completed deliveries on a contract prior to the date the policy triggered you will not be eligible for payment.
- You do not need to claim individually. This will be handled by NFU Sugar and British Sugar on your behalf.
- You should have received a certificate of insurance from NFU Mutual confirming your covered tonnes under the policy. If you are unsure, please contact us.
- If you failed to return your Crop Area Declaration in time to receive an NFU Mutual Frost Insurance certificate, you will not be covered.
- The overall fund this year is £15m based on area, in the event of claims reaching beyond this, claims will be pro-rated.
- Any market bonus pay-out in 2025/26 will remain on tonnes delivered.
Contact us
If you have any further questions, contact your British Sugar Agriculture Manager or the British Sugar Services team via email [email protected], or call freephone 08000 902376.
Alternatively, you can contact NFU Sugar via email at [email protected], or call 03700 661974.