“NO farmer no food no future”, is the slogan for the Zambia National Farmers Union (ZNFU), a clear expression of the importance of a farmer to the wellbeing of all.
Without food there is literally no economic activity no wonder the Bible says “man shall not live on bread alone…”
“The agricultural sector continues to be the backbone of the Zambian economy as it contributes to the growth of the economy and to exports.
“Primary agriculture contributes about 35 per cent to the country’s total Non Traditional Exports (all the country’s exports other than copper and cobalt) and about 10 per cent of the total export earnings for the country” partly reads a document on the Zambian Development Agency website.
Cultivating about 1.5 million hectares annually out of the 42 millions hectares available in Zambia, this sector calls for continued and concerted efforts both from government and the private to realise its full potential.
Earlier in the year the 88th Zambia Agriculture and Commercial show was held under the theme ‘breaking new grounds’.
Late president Michael Sata – MHSRIP – in a speech read on his behalf by then Vice President Guy Scott said government expected all distributors of agricultural products to complement Government efforts in promoting small and medium enterprises by fostering business linkages with local suppliers.
In April this year more than 8,000 people attended the Agritech Expo in Chisamba at an event exclusively orgainised for farmers.
Further, government has increased beneficiaries under the Farmer Input Support Programme as stated by Agriculture and Livestock Minister Wylbur Simuusa, when he flagged off the distribution of farm inputs in May.
With all these efforts directed towards supporting agriculture, a farmer still faces risks that may derail his plans.
He may get funds from the bank and invest everything in his field but imagine, there being a drought in that season; he stands to lose out.
Therefore, these interlinked activities cannot be complete without insurance.
Farming like other business activities faces a number of risks which may discourage a lot of people from undertaking it. As will be seen below, one can confidently face these risks with protection from insurance.
Being a small-scale farmer I had an experience where I planted about one hectare tomatoes in 2009 which later was affected by a two week dry-spell.
Again this year a stream which has never dried in years, apparently dried up due to delayed rains.
These experiences resulted in losses.
It is, therefore, important for farmers and their financiers to consider risk management and more precisely arrange appropriate insurance for their crops and livestock.
Some of the risks that farmers face in respect of their crops include drought, fire, hail, flood, tempest and malicious damage among others.
On the livestock side, risks that can be insured include mortality, uncontrollable pest and disease or epidemics, snake bites, theft, natural hazards such as fire, lightening and floods among others.
The theft risk reminds of an unfortunate event where three pigs were stolen for the first time on my little farm. This resulted in an immediate loss of about K2,000 excluding future profits through reproduction.
Other farm risks relate to the assets of the farmers, such as their motor vehicles, planes, agriculture implements, buildings and so on.
Further a farmer will also need insurance for his workers such as health insurance, funeral insurance, employers’ liability insurance, group personal accident and public liability policy for damage or injury to members of the public or their property.
There are many policies offered by different insurance companies in Zambia such as Crop Insurance, Livestock Insurance or packed policies which are usually tailor made to suit a specific farmer.
For commercial famers buying insurance, is usually part of their budgeted expenses but to a small and medium scale farmer, this is usually least considered. Take for example, a small scale farmer who struggles even to buy seed or other farm inputs.
How then can small and medium scale farmers be assisted? This is where associations such as the ZNFU and cooperatives play a pivotal role.
With the aggregated numbers in the unions, insurance can be arranged for the members and with big numbers insurance is even made more affordable. This is an area of micro-insurance with a lot of potential.
As I conclude today’s topic I urge farmers to seriously consider protecting their crops (delayed rains might be a sign of some drought), livestock and other assets by arranging appropriate insurance policies.
Therefore while farmers say “no farmer no food’ as an insurer I reiterate “no insurance, no farmer, no food, no future…!’
Comments: webster@picz.co.zm or webster_tj@hotmail.com or on face book search for Insurance Talk-Zambia page or call/text 0977 857 055