FARMERS ADVISED TO INSURE THEIR AGRO BUSINESSES

By NOEL IYOMBWA

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

Crop-yield insurance or the loss ofrevenue due to declines in the prices of agricultural commodities is anotherpurpose of agriculture insurance.

Running a farm requires specificresponsibilities, such as ensuring animals are fenced in and can’t escape theproperty. 

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.

Mr Chisanga observed that the wind fallall weather index has been in existence for some time but many people farmers inclusive have little information as to how one can make claims.

"The business of agriculture hasa lot of uncertainties due to changing weather patterns.

"The importance of agricultureinsurance cannot be ignored especially when you look at the Zambian scenariowhere the weather pattern is not stable each year,” explained Mr Chisanga.

He noted that understanding insurancefor farmers is a step toward sustainability, as anyone investing in agricultureneeds to protect the value of their property from disasters.

Mr Chisanga noted that a farm cangenerate wealth until a drought or severe storm strikes. 

He further emphasized on the need forfarmers to carry liability insurance to pay for mishaps involving third parties. 

"If a visitor to your farm, for example, slips and gets injured, your liability coverage will pay for it,” he indicated.

"The right coverage can help pay for unexpected disasters, from natural events to theft or vandalism,” he indicated.

‍