Insurance is the best way to manage the uncertainties of your time. For a premium, you transfer potential losses to an insurance company. Insurance comes in many forms. Most are insurance for life, valuable things or certain qualities. Betty Grable, Hollywood golden goddess of WW2, insured her legs for $1M. So if you got a farm, you need insurance for these two good reasons: farming activities are risky; farmers are using hazardous equipment; and farm animals are unpredictable & can be uncontrollable. A farm in Tanzania or anyplace in the world is legitimate business; you have no reason not to have insurance.
Benefits of farm insurance
- Protection for crops, farming,harvesting practices and livestock from reversals;
- Helps farmers to recover their losses due to unpredictable natural disasters;
- Agriculture investment is expensive and risky, so it needs protection; business;
- As security, farmers have peace of mind.
- Farmers get insurance coverage for the new technologies.
Why you should opt for farm insurance in Tanzania?
Around 80% of Tanzania’s population isin agriculture so an agricultural insurance is the solution to most risks related to farming.Any substantial income risk is damaging to small or poor farmers in developing countries. Tanzania’s government isprepared to start a method of extending insurance coverage to its agriculture sector. The goal for the strategy is to assist farmers recoup their losses in the event of calamities such as floods, drought and others. Farm insurance is a very practical move as Tanzania’s economic mainstay is agriculture. Insurance coverage for farmers will not only be for their own security but a step to the next level in national economy.
A look at the Kenya model
Even if Kenya is less than 500 miles away from Tanzania, it would be good to take a peek at Kenya’s agricultural insurance package. The Kenyan government recently government recently collaborated with some insurance companies to cover poor yields incurred by smallholder maize farmers due to unfavorable weather conditions, diseases and damages from insects. The government grants 50% subsidy on insurance premium for up for each farmer owning five acres. The insurance coverage aided farmers against yield deficiency below 80% from harvest expectation during period coverage.
Tanzania agricultural insurance model
Three models were studied for Tanzania’s agricultural insurance to fit its environment and needs.
- The government or the state is the sole insurer.
- The government subsidizes premiums but does not own the insurance business venture.
- The government provides re-insurance services but primary cover is provided by primary companies.
Tanzania has yet to adopt a vibrant agricultural insurance package that will be right for their environment and needs of its farmers. According to the Head of Agriculture, a government-led national agriculture insurance strategy will be the best for improving farm production. The design packages must be favorable and friendly to smallholder farmers. Officials of World Bank added that for an agro-insurance schemes will be successful if rooted from public-private partnerships. Insurance coverage can defect potential famine even when farmers have lost their crops.
Tanzania has done its best in making preparations and expecting positive outcomes of agro-insurance, you help yourself and your farm by opting for farm insurance!