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Fildah Gwati
AMID the rising incidences of climate-induced shocks are affecting agricultural production, experts have called on farmers to take crop and livestock insurances to reduce potential losses caused by such disasters.
Zimbabwe Farmers Union (ZFU) secretary general Mr Paul Zakariya described insurance as an important component of production, hence the need for farmers to underwrite their livestock, crops and other assets to enable them to get compensation in times of disasters.
“Farmers must know that insurance is not a waste of money but an investment for future wealth and in the event that disaster strikes and they are insured, then they do not lose entirely because insurance will cover them,” he said.
He added that, farmers must consider the protection of their sales and products as important. Insurance policies can safeguard them against losses related to crop failures, market fluctuations or physical damage to agricultural products.
By insuring their sales and products, farmers can mitigate the impact of these risks and maintain a stable income stream.
However, there is also a pressing need for insurers to develop tailored products that cater for the diverse needs of agricultural producers.
“They also need to come down to the level of the agricultural producers and have more products that the producers can subscribe to so that we move with time,” he highlighted.
Mr Zakariya explained that there many insurance products suitable for smallholder farmers while there were also risks are in every farmer category hence the need for insurers to wake up and be relevant to all categories of producers.
“ZFU partners with insurers to advocate the significance of farm insurance and its importance to farmers’ livelihoods,” he added.
Agricultural Finance Corporation (AFC) insurance company general manager and agriculture insurance expert, Mr Cuthbert Masukume said: “Since farming is a serious business; it is necessary for farmers to ensure that their investments are secured and their food security guaranteed.”
He commended Government’s increased support for agricultural production through an enabling environment and raising awareness among farmers on the importance of agriculture insurance.
He said: “Technology adoption lowers costs, resulting in affordable premiums because AFC Insurance utilises technology for weather index insurance, utilising satellite data to determine compensation for rainfall deficiencies, drones to streamline crop assessments reducing time and improving efficiency. We have a livestock tracking system, which enhances livestock management.”
AFC Insurance endeavours to create tailor-made agricultural insurance solutions for emerging and established farmers in order to meet their needs.
“We have a wide array of policy options suitable for the various budgets of the farmer. As an example, damage-based indemnity insurance cover can be arranged to cover perils such as frost, flooding, fire, and lightning. The more restricted the cover is, the lower the premium tends to be (ceteris paribus). On the other hand, farmers can also take wider coverage under yield-based multi-peril coverage for a significantly higher premium,” explained Mr Masukume.
Mr Masukume added that the adoption of technology had helped reduce their operating costs with the reduction also being passed on to consumers through affordable premiums.
He observed that while a lot had been done in raising awareness among farmers through farmer education and roadshows, continued farmer education and risk awareness training remained essential in ensuring that all farmers treat insurance as an input to their business as the country journeys towards achieving food sufficiency.
Online Reporter