Help yourself and your farm by opting for insurance in TanzaniaImo
Around 80% of Tanzania's population is in 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 is prepared 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.
1. The government or the state is the sole insurer.
2. The government subsidizes premiums but does not own the insurance business venture.
3. 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!