By NOEL IYOMBWA

AGRICULTURE insurance is insurance purchased by agricultural producers and subsidized by a country's government to protect against either the loss of their farm produces due to natural disasters such as hail, drought and floods.

Crop-yield insurance or the loss of revenue due to declines in the prices of agricultural commodities is another purpose of agriculture insurance.

Running a farm requires specific responsibilities, such as ensuring animals are fenced in and can’t escape the property. 

If cattle escape, you need special coverage to pay for missing cattle or damage they do to other property.

As a farmer, you likely have plenty of commercial assets to protect, including farming equipment. 

For expensive investments, getting farm equipment insurance and covering specific items is best. 

Your assets may also include farming structures, crops, and individual animals. 

In each case, you’ll need separate coverage for farm structure, crop, and livestock insurance.

Unfortunately, most farms in Zambia are not insured despite the uncertainties surrounding farming business.

Economist Kelvin Chisanga says it is important for agriculture business to be insured due to the uncertainties surrounding it.

Mr. Chisanga said with the unpredictable weather pattern in Zambia, it is imperative farmers insure their agro businesses.

He said the issue of climate change and the aspect of demand and supply makes it more important to have Agribusiness insured.

Mr. Chisanga noted that insurance in the agriculture sector creates enough safety net in so many areas as it prevents loses and damages as a result of uncertainties.

He cited an example of the anthrax as one of the situations that a farmer needs to insure its business.