Nyaruguru: Farmers call for more efforts to improve Crop and Livestock Insurance scheme as part of adaptation to the effects of climate change

By DUSABEMUNGU Ange de la Victoire

Farmers in Nyaruguru District have called for more improvements that will lead to the expansion of crop and livestock Insurance to help them adapt to the effects of climate change.

Three years ago, the Government of Rwanda introduced crop and livestock Insurance by the time when farmers were facing losses caused by the effects of climate change, hence putting in place the insurance scheme can make a farmer secure from natural disasters and Climate Change.

This scheme is also one of the programs that the Government has prioritised in its Nationally Determined Contributions (NDC) that will help the country to reduce greenhouse gas (GHG) emissions of up to 38% compared to business-as-usual (BAU) in 2030. This is equivalent to an estimated mitigation of up to 4.6 million tonnes of carbon dioxide.

Taken together, the country’s efforts to limit its contribution to climate change and adapt to the consequences over the next decade will require approximately US $11 billion, made up of 5.7 billion dollars for mitigation and 5.3 billion dollars for adaptation. It is expected that this funding will come from both domestic and external sources.

Based on the allocation of the NDC budget in sector by sector, expanding Crop and Livestock Insurance is one of the priorities that will require USD 109.6 million by 2030.

Under the scheme, farmers pay 60 per cent of the insurance premium, while the Government of Rwanda covers the remaining 40 percent in subsidy.

Despite the program being favourable, reports show that farmers are still reluctant to join insurance.

 For instance by May, 2021, figures by PSTA 4 -the Sector Strategic Plan for Agriculture, show that less than half per cent of farmers report using agricultural insurance despite availability of insurance since 2012.

TOPAFRICANEWS.COM has investigated the implementation of this program in Nyaruguru District in Cyahinda, Nyagisozi and Kibeho sectors where farmers showed that although they have shown positive attitude towards the Crops and Livestock Insurance, there are some issues that need to be addressed as far as the program expansion is concerned.

Among the issues raised are that:

·        In some cases, Insurance companies are late to inspect crops damaged by the disaster and this may lead to the delays in compensation and even saving some crops which are yet to get affected,

·    In some cases the compensation is not equal to the damage due to the fact that in the Insurance payment agreement there is a fixed produce that is considered maximum per hectare (3.5 Tons) while farmers said they can go beyond the fixed produce.

·  Low awareness on crop and livestock insurance also leads to the low understanding of Crop and Livestock Insurance.

However, positive outcomes have so far emerged from this insurance scheme in Nyaruguru District among them are the fact that:

·   Those who have already joined the insurance scheme confirmed that they feel safe because now if disasters affect them they get compensated.

·  Farmers believe the cost of insurance is affordable despite the wish to reduce more on the price

· They even say that the Insurance program is a professional farming revolution

More to be done to increase the number of farmers into Insurance

Farmers in Nyaruguru District have been with insurance companies for three years.

In fact, before joining the scheme they were facing problems in agriculture due to the effects of climate change, lack of rain or too much sun and other disasters including Irish Potatoes wilt also known as Kirabiranya.

According to officials in Nyaruguru District, crop and Livestock insurance schemes, in particular, for crops, have reached 30% of the 7000 hectares that need to be insured.

Currently, the insured crops in the District are potatoes and maize as they are the most grown in Nyaruguru.

Looking at the payment as in the Cooperative JYA MBERE MUHINZI KIBEHO, It usually pays FRW 629,000 for 31 hectares of maize.

Depending on the acres, each member contributes between Rwf 212 and Rwf 220 to the Insurance based on the space cultivated. In the meantime, this cost has been reduced from Rwf 270 that they used to pay before

According to Mukabutare Eugenie, Vice-President of the ABISHYIZEHAMWE Cooperative, which operates in Nyagisozi and Cyahinda wetlands, farmers need to understand what is the real cause of crop insurance.

“Normally crop insurance is like Health Insurance. Today I may not be sick but tomorrow I can be sick. When you provide insurance, it does not mean that you have to get sick, but that you do not have to worry about losing your health when you are sick. ” She says

She added that as a farmer, “When they say Crop Insurance, she understands the safety from disasters,

 “whether it’s caused by sun, rain and that is not my fault, whether the weather changes or not, this means the insurance pays the damages caused by disasters and not farmers,” she said.

According to Nelson Muhayimana in charge of Agriculture and Natural Resources in Nyaruguru District, the Crop and livestock Insurance Scheme so far reaches farmers who have come together in cooperatives, especially those who cultivate in wetland and on consolidated terraces.

“Over three years, farmers have been more receptive to this insurance program and have shown better interactions with our insurance companies,” he said.

Mr. Muhawenimana noted that Farmers have been affected by various disasters but in collaboration with the relevant authorities they have been compensated.

“It is possible that there is still a large number of farmers who are yet to understand the modalities in the program, but with the ongoing awareness and compensations to those affected, these will continue to help farmers to change the behaviour towards the program.” Mr. Muhawenimana said.

On issues raised by farmers on crop insurance, the Nyaruguru District Administration says it will continue to work with district partners on insurance to find suitable solutions for farmers, given that there is still a large number of farmers who have not yet joined the insurance due to the low level of the understanding.

Recommendations

In order to expand and continue to strengthen the Crop and Livestock Insurance scheme, farmers in Nyaruguru District recommend the following:

• Continued assistance in the field of professional farming including access to seeds that are resistant to the effects of climate change

• Removing the limit of compensated quantity from 3.5 tonnes per hectare to unlimited since in some cases a farmer whose seeds were favourable with the soil can produce even more.

• Urge insurers to stay close to them through ongoing partnerships

• Request Prompt early visit to disaster damage

• Increase awareness among farmers in order to increase the number of farmers joining the Insurance scheme in Nyaruguru district.

National Crop and livestock insurance summary progress

Data from the Ministry of Agriculture and Animal Resources show that as of June 2021, over 185,509 farmers growing crops including rice, maize, pepper, French beans, Irish Potatoes on 33,790 Hectares of crops have benefited from subsidized insurance.

The Government has so far provided subsidies worth Rwf 457,303,746 million to farmers, while insurance companies have so far compensated the insured farmers who incurred losses with Rwf 520,023,702 million, and livestock keepers with Rwf 461,917,666 Frw million.

It is also to note that the subsidized insurance scheme covered other areas as follows: Insured Cattle are 41,517, Poultry: 109,630, Piggery: 2,378.

The Data sent to TOPAFRICANEWS by the Ministry of Agriculture and Animal Resources are as of June 2021.

Ange de la Victoire Dusabemungu

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