The Namibian government is exploring insurance options for livestock and crop farmers, but the Ministry of Agriculture, Fisheries, Water and Land Reform warns that the costs could be substantial. According to Ben Haraseb, the ministry’s director of agricultural production, extension and engineering services, insuring small stock in just one region could cost around N$45 million. This estimate was shared during a recent dialogue on nutrition for growth, food security, and sustainable agriculture.
The Nutrition and Food Security Alliance of Namibia hosted the event, where Haraseb emphasized that the N$45 million figure only accounts for small stock insurance in a single region and does not include cattle or crop production. If the entire country were to be insured, the costs would significantly increase. Haraseb stressed that the government needs to consider its available funds and how to structure an insurance scheme to effectively reach farmers nationwide.
Farmers at the dialogue urged for the introduction of crop insurance to protect them from financial losses due to crop failures. They highlighted that many producers rely on loans to finance their operations and struggle to repay these loans when crops fail. One farmer questioned why Namibia cannot implement a crop insurance scheme similar to those available in other countries, where insured farmers receive compensation for crop losses.
In response to the farmers' concerns, the Namibian Agronomic Board (NAB) is working on an insurance scheme aimed at protecting crop producers from production risks. According to Loide Uahengo, the NAB's manager for agronomy market development, the proposed scheme is part of the board's value chain development strategy. The board is exploring ways to provide insurance cover to crop producers.
Uahengo confirmed that the initiative is still in development, stating that it is "in the pipeline" within the NAB. Meanwhile, Tino Hess from GIZ Namibia’s Agricultural Business and Capacity Development Project emphasized that farmers must also take steps to reduce production risks for agricultural insurance to be effective. This includes monitoring crops for pests, addressing problems promptly, and having backup plans for livestock feed and other needs.
Hess noted that agricultural insurance carries risks for whoever finances it, whether farmers, the government, or another institution. He pointed out that farmers who pay premiums may question the value of insurance if they experience several years without losses. According to Hess, there is no simple solution, but farmers who adopt good agricultural and climate-smart practices can reduce their risks and make agricultural insurance more attractive to insurers.
The development of an insurance scheme for farmers in Namibia is ongoing, with various stakeholders contributing to the discussion. The Ministry of Agriculture, Fisheries, Water and Land Reform, the Namibian Agronomic Board, and other organizations are working together to explore options for providing financial protection to farmers. The goal is to create a scheme that balances the needs of farmers with the costs and risks associated with agricultural insurance.
Key points
- Insuring small stock in one region could cost N$45 million.
- The Namibian Agronomic Board is developing an insurance scheme for crop producers.
- Farmers must reduce production risks for agricultural insurance to be effective.
