Agriculture has always depended on weather patterns. But climate change is making farming more unpredictable.
The Kenya Climate Smart Agriculture Strategy 2017-2026 indicates that 98 per cent of the country’s agricultural systems are rain-fed and highly susceptible to climate change and variability. This susceptibility is likely to jeopardise attainment of the sector's contribution to the national economy.
Many of the most severe threats are climate-related, which are compounded by disease and pest outbreaks.
The country is currently experiencing a drought that has left more than 3.5 million people facing extreme hunger, millions of livestock dead and crops destroyed. Climate change effects have increased in frequency and severity over the years.
According to ‘Climate Change and Food Security in Kenya-2015’ a brief by the Environment for Development Initiative, adverse climate change is likely to increase food insecurity in Kenya. The greatest effect will be on maize, with maize insecurity predicted to increase by 8.56 per cent to 21 per cent by the year 2100.
This calls for both livestock and crop insurance to mitigate devastating weather-related risks.
Smallholder farmers who depend on rain-fed agriculture and use low-technology farming methods are particularly vulnerable to droughts and floods, yet less than one per cent are currently protected by some form of insurance.
Despite high levels of government and partner subsidy for agriculture (livestock and crop) insurance premiums, its access and acceptability have been sluggish. This is attributed to low awareness and knowledge of agricultural insurance, lack of trust and poor understanding of insurance by rural farmers.
Why is agricultural insurance important in attaining food security?
Agricultural insurance serves as a reliable risk mitigation instrument for coping with climate-related risks, protecting farmers from the perils they incur while also helping them boost their productivity and contribute to food security.
With increased climate variability, smallholder farmers are adversely impacted leading to poorer and reduced harvest. For instance, the locust invasion led to losses and the majority of farmers who had not insured their farms and livestock were unable to bounce back.
Agricultural insurance will assist farmers in continuing to cultivate and herd, maintaining their income levels even if produce is lost by covering losses from unfavourable weather conditions.
Additionally, it assists farmers to access credit for inputs and do business with other value chain actors, including off-takers. Insurance settlements can also be utilised to buy food, pay bills, make repairs and reinvest for faster production recovery after a loss or damage.
According to research, inadequate understanding of agricultural insurance products, gender disparity and cost, are among the reasons behind low investment in agricultural insurance.
With rising agricultural commercialisation, global trade, foreign direct investment and the creation of new insurance products, the agricultural insurance industry is growing.
This calls for government and stakeholder collaboration to widen the scope and create awareness among farmers on the importance of averting risks while utilising insurance products.
According to Vision 2030, under the Agriculture Policy, Legal and Institutional Reforms, government stipulates development of insurance policies that will cushion producers against weather fluctuations.
Farmers, therefore, need to take up opportunities for agricultural insurance provided by the government and other organisations. Farmers who are able to better manage their risks are better able to contribute to food security.
Insurance is viewed as a clever strategy for increasing resilience against negative effects from climate variability and change among vulnerable rural households while accelerating pro-poor rural development.
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