NOTHING is so exciting to a farmer than to see Government’s commitment to support the agricultural sector.
Government’s demonstration of this commitment was at the 2015 Agritec Expo held at Golden-valley Agricultural Research Centre (GART) in Chisamba.
President Edgar Lungu visited the exposition on Saturday and the Times of Zambia reported that the President was ready to meet and share ideas with farmers on how to grow the sector.?Earlier, on Friday Vice President Inonge Wina said no Zambian will starve as Government was doing everything possible to mitigate the effects of the projected reduced harvest in some areas.
The highly organised show attracted other high profile people such as Agriculture Minister, Given Lubinda, former vice president Guy Scot, former first lady Maureen Mwanawasa, UPND leader Hakainde Hichilema among others.
The exposition is exclusively targeted at the agricultural sector and it attracted around 120 exhibitors both local and foreign.
State-of-the-art equipment was displayed to the amusement of this author.
One of the significant developments in the agricultural sector is the financing of such equipment with banks vehemently funding farmers who want to pay over a period of time.
I had a chat with one of the managers of AFGRI who told me that they no longer give credit to farmers directly instead all those who wish to buy on credit should go through the banks who will provide them with the funds to purchase the equipment.
The Zambia National Commercial Bank (ZANACO) is one of such banks that provide funding.
Speaking at a technical workshop during the Expo, ZANACO head of agri-business Ephraim Mwafyeni explained clearly how these funds can be accessed.
He further presented on how his bank was ‘financing outside the box.’?It is such initiatives that the nation needs to maximise its agricultural potential.
Such financing are not just targeted at commercial farmers but small and emerging farmers through various schemes such as one via the Zambia National Farmers Union (ZNFU).
The valuable equipment financed is also susceptible to loss or damage resulting from both unforeseen and unforeseeable risks.
Paradoxically, even in such unfortunate events of loss, the banks will still need their funds paid.? They will not repossess damaged equipment for example.
It is for such reasons insurance comes in to provide the much needed security.
Even with a well-planned course of action compounded with best practices, risks may occur and may derail the intended objectives.
Let’s take another instance of drought.? President Lungu acknowledged that Zambia experienced some dry spell this season and it is likely to affect the harvest.
With appropriate insurance in place insurers can come through to compensate for loss arising from such occurrences.
Numerous small-scale farmers have benefited from such policies in this country.
Further, most of the commercial farmers finance their farming business by borrowing from banks.
I have been visiting farmers in both Mkushi and Chisamba farming blocs and have seen huge hectors of tobacco, soya beans and wheat among others.
In the current season there are a few farmers whose tobacco for example was damaged by hail storms.
This will result in some cases 100 per cent loss of the more than 200 hectors of tobacco planted.
With this loss the farmer is still expected to pay back the funds they borrowed from their bank.
This is where insurance plays a pivotal role.
It protects farmers against such risks and by doing so, it enables financiers to lend with assurance that even when insurable risks occur farmers will still pay back.
Farmers are also able to confidently take risks of farming knowing that should anything go wrong they will fall back on insurance cover.
There are also many other areas of risk that necessitate insurance to farmers.
These include buildings they own, vehicles they drive, workers they employ etc.
A few months ago when visiting one farmer, I was so touched to learn how one of his workers was accidentally electrocuted and lost his limbs.
Such cases may appear so remote but are real and the probability of such cases happening validates the need for insurance.
Employers have a duty of care be it vicariously to their employees and having Group Personal Accident or Employers liability will transfer the burden of compensation to the insurer.
A farmer can consider taking up a packaged policy covering the various risks they face on the farm.
This has its own benefits such as discounted premiums inter alia.
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?(The Author is a Chartered Insurer with more than 10 years industry experience).