Maize farmers to benefit from insurance policy
BEFORE 2010, Scolastica Akiteng was battling with the problem of floods that hit Teso region in need of food aid. According to the minister of state for relief, some family heads have run away from home leaving the women to fend for the children. This is due to harsh weather conditions in Teso and
BY PROSSY NANDUDU
BEFORE 2010, Scolastica Akiteng was battling with the problem of floods that hit Teso region in need of food aid. According to the minister of state for relief, some family heads have run away from home leaving the women to fend for the children. This is due to harsh weather conditions in Teso and other parts of the country.
The floods washed away crops, houses and animals. The crops withered and animals died due to lack of pasture and water. Many farmers have resorted to financial institutions for loans but in vain as the financial institutions were not ready to lend out money for agriculture.
As a result, some financial institutions are finalising policy issues to offer Weather index insurance to farmers in Uganda. Weather Index Insurance is a policy that compensates farmers whose crops suffer heavy rains, drought and floods.
Under this arrangement, the insurance firm compensates farmers for the expenses and losses incurred when their crops get affected by bad weather. The pay is calculated by taking the amount of rainfall measured at a local weather station and applying the insurance payout formula in contract terms and conditions.
The first beneficiaries will be farmers from Northern Uganda. The managing director, Lion Assurance Company, George Alande says they are focusing on the maize producing areas.
Alande adds that they are reviewing data from Ngeta in Arua district to finalise the policy document.
“We need at least five years to gather data from areas that we visit. We have gone to Ngeta in Arua. We are finalising the policy document for farmers in that region,†he says.
The success of the policy depends on correct and accurate weather information. “However, the hindrance has been the meteorological department. Basically you may have information that has some gaps.â€
According to the managing director of Centenary Bank, Fabian Kaasi, the agriculture sector has risks including: price fluctuations, drought and pests.
BEFORE 2010, Scolastica Akiteng was battling with the problem of floods that hit Teso region in need of food aid. According to the minister of state for relief, some family heads have run away from home leaving the women to fend for the children. This is due to harsh weather conditions in Teso and other parts of the country.
The floods washed away crops, houses and animals. The crops withered and animals died due to lack of pasture and water. Many farmers have resorted to financial institutions for loans but in vain as the financial institutions were not ready to lend out money for agriculture.
As a result, some financial institutions are finalising policy issues to offer Weather index insurance to farmers in Uganda. Weather Index Insurance is a policy that compensates farmers whose crops suffer heavy rains, drought and floods.
Under this arrangement, the insurance firm compensates farmers for the expenses and losses incurred when their crops get affected by bad weather. The pay is calculated by taking the amount of rainfall measured at a local weather station and applying the insurance payout formula in contract terms and conditions.
The first beneficiaries will be farmers from Northern Uganda. The managing director, Lion Assurance Company, George Alande says they are focusing on the maize producing areas.
Alande adds that they are reviewing data from Ngeta in Arua district to finalise the policy document.
“We need at least five years to gather data from areas that we visit. We have gone to Ngeta in Arua. We are finalising the policy document for farmers in that region,†he says.
The success of the policy depends on correct and accurate weather information. “However, the hindrance has been the meteorological department. Basically you may have information that has some gaps.â€
According to the managing director of Centenary Bank, Fabian Kaasi, the agriculture sector has risks including: price fluctuations, drought and pests.