“Empty your mind, be formless, shapeless — like water.
Now you put water in a cup, it becomes the cup;
You put water into a bottle, it becomes the bottle;
You put it in a teapot, it becomes the teapot.
Now water can flow or it can crash.
Be water, my friend”.
With these words, Bruce Lee starred in a TV spot years after his death. And truth be told, adapting to change has been the attitude that has enabled mankind to survive throughout history.
At the beginning of the 20th century, fields were ploughed by horses, whereas today the work is done by tractors, and crops were watered by opening and closing furrows with a hoe to let water from a sluice channel flow into them. Today, crop irrigation is largely an automated process, and can even be controlled via a smartphone.
The weather can be predicted several days in advance, but it is difficult to quantify the outcome of damage caused to a crop due to a hailstorm. Costs run high and on occasions can wipe out a year of hard work.
Fortunately, and by adapting to change, now there is agricultural insurance, which is essential for certain farming businesses. In Spain, these kinds of policies cover phenomena that are outside the control of farmers, such as fire, hailstorms and heavy autumn rainfall, among others.
A bit of background
In our country, the origins of agriculture and livestock insurance go back to 1917, although it was definitively implemented in 1978.
Its development as enabled farmers and ranchers to guarantee the continuity of their business through compensation in the event of claims, where financial compensation is proportional to the damages suffered and the coverage taken out.
These policies maintain a constant level of income and strengthen the financial solvency of producers. In fact, the most cautious already calculate the payment of their premiums as a fixed operating expense.