MAKE AGRIC INSURANCE MANDATORY

AMIDST the turmoil of chaotic times, there exists opportunity, as illuminated by the timeless wisdom of Sun Tzu and in the depths of our darkest hours, Aristotle beckons us to hone our focus for it is within these shadows that the beacon of light shines brightest.

A number of regions across Zambia, such as Eastern, Southern, and Central provinces, are contending with an extended period of drought, leaving numerous districts parched and presenting a considerable risk to maize cultivation.

The prolonged dry spell, linked to the El-Nino phenomenon, has endured for the past three weeks, not only impacting agricultural output but also heightening apprehensions regarding food stability next year.

Arising from this, Zambia will adjust its national budget to ensure food security as a dry spell hits more than half of the country’s 10 provinces, according to President Hakainde Hichilema.

The President further said the Food Reserve Agency is prepared to purchase all crops that are produced in the country to ensure there’s enough food for its citizens.

The lack of rain also threatens to curb output at hydropower plants in the south of the country, he said.

The Zambian law requires that all vehicles on public roads must have insurance or a form of security against third party bodily injury or death liabilities. The mandate for vehicle insurance stands as a pillar of protection, ensuring that in the event of mishaps, individuals are shielded against the burdens of third-party liabilities. However, when we talk about the agriculture sector, insurance is still optional for many farmers.

The law unequivocally dictates that all vehicles traversing public roads must be equipped with insurance or a form of security to mitigate the financial repercussions of third-party bodily injury or death. This legislative requirement underscores society’s recognition of the potential risks inherent in vehicular activities and the imperative need to safeguard against unforeseen circumstances. Yet, compared to the vulnerability of our agricultural endeavors, a glaring disparity emerges.

Agriculture, the lifeblood of nations, sustains communities, and fuels economies. However, it operates within a realm fraught with uncertainties, ranging from adverse weather conditions to pest infestations, each capable of wreaking havoc on crop yields and livelihoods. In the face of such unpredictable challenges, the absence of mandatory insurance or a comparable safety net leaves farmers perilously exposed, teetering on the precipice of financial ruin with each unforeseen calamity.

Consider, for instance, the recent plight of farmers in various regions of our country grappling with the debilitating effects of prolonged drought. As fields lay barren and crops wither under the scorching sun, the economic fallout reverberates far beyond the agricultural sector. Families dependent on farming for sustenance find themselves thrust into the throes of uncertainty, grappling with diminished incomes and heightened food insecurity. In such dire circumstances, the absence of a safety net exacerbates the plight of those already teetering on the brink of destitution.

Extending the mandate for mandatory insurance to encompass agriculture is not merely a matter of regulatory compliance; it is an imperative undertaking born out of a commitment to equitable protection and resilience-building. By requiring farmers to secure insurance or a comparable form of security against potential losses, we fortify the foundation of our agricultural sector, empowering farmers to navigate the inherent uncertainties with greater confidence and stability.

Moreover, the benefits of such a proactive measure extend beyond individual farmers to encompass the broader socio-economic fabric of our nation. By mitigating the financial fallout of agricultural losses, we bolster rural economies, preserve livelihoods, and safeguard food security for all citizens. Furthermore, by incentivizing investments in risk-mitigation measures and sustainable farming practices, mandatory agricultural insurance serves as a catalyst for innovation and resilience-building within the sector.

In light of these challenges, proponents of mandatory agricultural insurance argue that such a policy would offer a safety net for farmers, providing financial protection against weather-related risks and enhancing their resilience to climate shocks. By ensuring that farmers have access to insurance coverage, even in the face of adverse weather conditions, the policy aims to stabilize agricultural production, boost investment in the sector, and safeguard rural livelihoods.

“Mandatory agricultural insurance is a critical tool for building climate resilience and sustaining agricultural development in Zambia,”

Under a mandatory insurance scheme, all farmers would be required to enroll in crop insurance programs, with premiums subsidized or partially covered by the Government. This approach aims to ensure broader participation in insurance schemes, particularly among smallholder farmers who are most vulnerable to climate-related risks but often lack access to financial services.

“By proactively managing climate risks through insurance, we can minimize disruptions to agricultural productivity, preserve rural incomes, and sustain overall economic resilience.”

Moreover, economic benefits of mandatory agricultural insurance extend beyond individual farmers to the broader economy. By reducing the financial burden on the Government in times of agricultural crises and minimizing the need for costly emergency relief measures, the policy can contribute to fiscal stability and long-term economic growth.

“Introducing mandatory agricultural insurance is not only about protecting farmers; it’s also about safeguarding the economy as a whole”.

Theodore Roosevelt once said in any moment of decision, “the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”

Therefore, as Zambia stands at the nexus of legislative action and societal responsibility, let us seize this opportunity to forge a path towards a future where our agricultural sector stands fortified against the vagaries of nature, and our farmers empowered to cultivate prosperity for generations to come.

The Author is an Economist and a multiple award journalist.