The case for a national agri insurance plan

South African farmers are finding their businesses increasingly at risk due to the effects of climate change. Broad-based access to a state-supported agricultural insurance scheme would enhance food security in the country, writes Dr Sifiso Ntombela, a senior agricultural economist at the National Agricultural Marketing Council.

- Sifiso Ntombela

The global population is expected to reach nine billion by 2050. Scientists have estimated that to supply adequate nutrition for every one of these people, food supply would need to increase 70% above present levels.

Approximately 736 million people in the world live below the poverty line, which means they survive on less than US$1,90 (about R28) per day.

The World Bank estimates that 413 million of these people live in Africa, and most are poorly educated, rural dwellers who rely heavily on agricultural activity.

The growing demand for food places agriculture centre stage in the bid to ensure a peaceful and stable world economy. Thanks to access to modern technology and highly skilled farmers, food production has become more productive and sustainable. However, farmers’ ability to meet the growing demand for food is constrained by the effects of climate change, putting a number of important variables beyond the control of the producer.

UNRELIABLE WEATHER

Climate change is one of the greatest risks facing agriculture and other economic sectors. In agriculture, changing climate and weather affect production and productivity by reducing crop yield, worsening the spread of weather-related diseases, and affecting livestock productivity and reproduction.