Establish insurance scheme for farmers — MPs
Members of Parliament on Thursday advocated for an insurance scheme for farmers.
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They said an insurance cover was crucial to enable farmers to recoup their investments in the event of failure or destruction of their crops and livestock from drought, excess rainfall and floods.
The MPs indicated that the increased risk of natural disasters on agriculture on the African continent due to climate change made it more apparent for farmers to have insurance cover to serve as a safety net for them.
They said the institution of an insurance scheme would encourage banks to give out loans to farmers and also serve as motivation for more youth to go into agriculture.
The MP for Nsawam-Adoagyiri, Mr Frank Annoh-Dompreh, set the tone for the debate when he made a statement on the need for a pilot weather index insurance for farmers.
Agricultural sector suffering
He said Ghana's agricultural sector, the largest employer in the economy, had been the hardest hit this year as a result of unfavourable weather.
"Farmers across the country have recorded poor crop production because the weather failed them," he said.
Mr Annoh-Dompreh said the effects of climate change on agriculture in Africa, resulting in crop failure and death of livestock, had become more frequent, leading to economic losses undermining food security and contributing to higher food prices.
Amend Insurance Act 2006
He said an insurance cover could provide a safety net for farmers and absorb the risks of potential hazards.
He, therefore, proposed the amendment of the Insurance Act 2006 to include insurance for agriculture, especially farmers and their farms, as a measure to introduce some relief to them.
He said with crop insurance cover, many farmers could have access to bank credit or input support and provide protection for agricultural loan portfolios (loans to clients involved in agricultural production).
"I believe that protection from crop revenue losses in times of adverse weather events will enable farmers to remain in production even after disasters," he said.
Mr Annoh-Dompreh asked the Ministry of Food and Agriculture, the Ministry of Trade and Industry and the National Insurance Commission to consider the issue of an insurance cover for farmers a priority.