FARMERS ADVISED TO UNDERSTAND INSURANCE IN AGRICULTURE

UNDERSTANDING insurance for farmers is a step toward sustainability as anyone investing in agriculture needs to protect the value of their property from disaster, an Economist Kelvin Chisanga has said.

Speaking to The Scoop, Mr. Chisanga said insurance of livestock and farming machinery in the agriculture sector created enough safety for the farmer in so many areas as it prevented losses and damages as a result of uncertainties.

“Farmers should understand that the importance of agriculture insurance cannot be ignored especially when you look at the Zambian scenario where the weather pattern is not stable. Each year, we are faced with problems with regard to climatic weather conditions,” Mr. Chisanga said.

He said most farmers in Zambia had not insured their farming equipment and livestock despite the uncertainties that were around the farming business such as unforeseen livestock diseases among other uncertainties adding that it was important for farmers in the agriculture business to insure their livestock and equipment with insurance companies due to the uncertainties surrounding it.

“Agriculture insurance is purchased by agricultural producers and subsidized by the Government to protect against the loss of a farmer’s produce due to natural disasters,” he said.

He stressed the need for Zambian farmers to carry liability insurance to pay for mishaps involving third parties.

He added that crop yield insurance or the loss of revenue due to declines in the prices of agricultural commodities was another purpose of agriculture insurance and emphasized the importance of running a farm with specific responsibilities such as restricting animal movements.

“When all farm machinery, crop produces, and livestock are insured, the right coverage can help pay for unexpected disasters, from natural events to theft and vandalism. For expensive investments, getting farm equipment insurance and covering specific items is best. Your assets may also include farming structures, crops and individual animals,” he explained.

He noted that climate change and the aspect of demand and supply gave more reasons why it was important to have agri businesses, farming machinery and livestock insured, adding that a farm could generate wealth until a drought or severe storm strikes.

“Climate change is upon us and farmers should prepare for the unpredictable weather pattern by taking the first step of farm insurance,” he said.