FEPSAN, Pula Insurance Target 3.9m Farmers For Insurance by 2020
The Fertiliser Producers and Suppliers Association of Nigeria (FEPSAN), in partnership with the Pan-African agricultural insurance advisory firm, Pula Insurance, has unveiled an innovative insurance package for smallholder farmers, to tackle climate change risk effects on farmers in the country.
The risks range from climate-induced drought, excessive rainfall, pests and diseases to other challenges that undermine farmers’ ability to acquire good yields and income.
The partnership programme, according to Economic Confidential, would provide 14 million bags of fertilizer among other insurance package for 3.9 million farmers by 2020, and increase the programme reach to 19 million by 2025.
Stakeholders from across the fertiliser value chain at a one-day workshop in Abuja, on “Bundling Insurance with Fertiliser: A Way to Increase Fertiliser Sales to Small-holder Farmers,” noted that Area Yield Index Insurance (AYII), will mitigate various risks being faced by smallholder farmers.
FEPSAN Chairman, Thomas Etuh, also explained that AYII is leveraged to help farmers cope with weather and other peculiar risks while scaling adoption of fertilizers among small farmers. “We believe that through adding insurance we will kill two birds with one stone; improve our farmers’ resilience and grow adoption of fertilizer in Nigeria,” he said.
However, the Chief Executive Officer, Pula Insurance, Rose Goslinga, opined that the Yield Insurance will also be beneficial to participating fertiliser companies, as the initiative will create an opportunity for them to build strong brands among farmers, and gain new customers.
Goslinga said the insurance policy will be subscribed to automatically by farmers through the purchase of fertiliser products for their farms. “Embedding agriculture insurance for fertilizer will enable these companies to understand farmers better, while providing them with real protection. In the 10 countries that Pula works, we have seen that companies adding insurance can grow their customer base by 30% in one year,” she said.
In a communiqué issued at the end of the workshop, stakeholders including Alliance for Green Revolution in Africa (AGRA), said Pula’s proposed AYII solution will compensate farmers in the event of climate or other catastrophes.
It is also an important intervention that will help them manage risks, and build sustainable farming enterprises that can withstand shocks.
“This insurance also provides financial security that gives farmers confidence to invest in additional inputs like fertilizer, knowing that their investment will be protected by insurance in the event of crop failure,” the communique added
