Online Reporter
Nyasha Simbisai
Agriculture Correspondent
Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary Professor Obert Jiri has called for the urgent scaling up of agricultural insurance for smallholder farmers to strengthen the country’s food systems.
This comes as climate variability, market volatility and production risks continue to threaten agricultural livelihoods.
Agricultural insurance encompasses a range of products designed to compensate farmers for losses arising from adverse production conditions.
These include crop insurance, livestock insurance and weather-index-based products that trigger payouts when predefined climatic thresholds are breached.
Smallholder farmer insurance in Zimbabwe is rapidly evolving, focusing on index-based insurance (IBI) to combat climate change, with government and regulators (IPEC) partnering with the International Finance Corporation, insurers and tech firms to boost awareness, reduce costs (subsidies), and build trust through pilot programmes.
In an interview, Prof Jiri said agricultural insurance must be viewed as a national development instrument rather than a niche financial product, particularly given the central role played by smallholder farmers in food security, rural employment and economic stability.
“Smallholder farmers remain the backbone of our agricultural sector, yet they are also the most exposed to production risks.
“In the face of climate change, agricultural insurance provides a structured and reliable mechanism to protect farmers, stabilise production and sustain livelihoods,” he said.
Due to climate change, the agriculture sector is grappling with increasingly erratic rainfall patterns, prolonged dry spells, floods and the rising incidence of pests and diseases, factors that affect most smallholder farmers who depend largely on rain-fed production systems.
Climate change has altered the risk landscape in agriculture.
“We are witnessing more frequent and severe weather-related shocks. Traditional coping strategies are no longer sufficient to protect farmers from repeated losses,” Professor Jiri said.
According to Prof Jiri, the relevance of insurance lies in its ability to provide predictability in an otherwise uncertain production environment.
“Insurance does not prevent droughts or floods, but it cushions farmers against their economic impact and allows them to recover and continue producing,” he said.
He emphasised that insurance products must be designed with smallholder realities in mind.
Weather-index insurance, for example, can be more suitable for small-scale producers because it relies on objective data such as rainfall measurements rather than individual farm assessments, reducing administrative costs and speeding up payouts.
Livestock insurance, particularly in drought-prone areas, can protect pastoral and mixed farmers against large-scale losses, while area-yield insurance can support crop farmers when average yields in a locality fall below expected levels.
Prof Jiri said the success of such products depended on transparency, reliable data and farmer understanding. “Insurance must be simple, credible and responsive. Farmers need to trust the system and clearly see how it works,” he said.
“When farmers are insured, they are more confident to invest in improved seed, conservation agriculture, irrigation and soil-fertility management. Insurance reduces the fear of total loss and encourages adoption of practices that enhance productivity and resilience,” he said.
Prof Jiri noted that the lack of credit remained a major constraint for smallholder farmers due to the high perceived risk associated with agricultural lending.
“Financial institutions are more willing to lend to farmers who are insured.
“Insurance reduces the risk of default and provides confidence to banks, microfinance institutions and agribusiness partners.”
Prof Jiri said such linkages were critical for transforming smallholder agriculture from subsistence-oriented production to a more commercial and business-focused sector. “Insurance helps unlock investment along the value chain, benefiting farmers and the broader economy.
“No single institution can deliver agricultural insurance at scale. We need collaboration between the Government, insurers, financial institutions, agri-businesses, development partners and farmer organisations.”
Despite its potential benefits, agricultural insurance uptake among smallholder farmers remains limited, largely due to low awareness and limited understanding.
Prof Jiri acknowledged that building trust was one of the most critical challenges.
“Farmers must see insurance working in practice. Timely and transparent payouts following adverse events are essential to building confidence.
“Financial literacy empowers farmers to view insurance as an investment in resilience rather than an unnecessary cost.
“Protecting farmers ultimately protects the nation’s food systems,” he said.
Prof Jiri acknowledged that challenges, including affordability, data limitations, product complexity and the need for continuous refinement of insurance models, remained.
“Insurance must be part of an integrated risk-management strategy that includes good agronomic practices, infrastructure development and climate adaptation measures,” he said.
