Given the recent drought plaguing the Horn of Africa, I began researching the impact of these dangerous weather patterns on the livelihood of farmers and small-scale producers in the developing world, particularly in Kenya.
According to CIA World Factbook, 78% of Kenya’s population lives in rural, agricultural region, 22% of its GDP is accounted for by agriculture, and 75% of its labor force works in agriculture.[1]
From these statistics, it is clearly evident that the Kenyan people and economy are heavily dependent upon the nation’s agricultural sector, and subsequently incredibly vulnerable to erratic weather conditions.
In attempt to mitigate the costs of lost capital and poor crop yields due to fickle weather conditions, NGOs and private companies have teamed up to develop innovative solutions to protect the average Kenyan farmer. Agricultural micro insurance, such as Kilimo Salama, literally means “safe agriculture” for farmers who can ensure food security, even in the event of a drought.
Farmers in rural regions around the world generally do not have access to insurance for their farms because they often lack the capital and other resources needed to acquire such protective services from banks or private companies. The insurance offered through Kilimo Salama is called “weather based index insurance.” Weather stations are used to measure the rainfall in given areas, and then these values are compared to predetermined standards specifying the rainfall needs of various crops. If the crop rainfall needs are not met, all insured farmers receive a payout, and if the needs are met payouts are not distributed.[2]
The weather systems themselves are powered with solar energy, which adds a sustainable, “green” component to the insurance process as well.
The registration process for the program as well as the delivery of payments is done through paperless transfer using mobile phone technology—proving another innovate application of information and communication technology for the betterment of the third world.
Not only are these farmers insured against the impacts of severe weather, they are also incentivized to purchase better quality seed and fertilizer for their farms. This leads to healthier products for the consumer, because it limits the usage of cheaper, more harmful chemicals. By using better quality seed, they are also guaranteed better yields than from those generated from seed leftover from the previous harvest.
Another great feature is that farmers, through their mobile phones, received tailor agricultural information about the specific crops they grow. These messages can be used to enhance the growth and productivity of their products.
Here is a video about the program:
The program seems like a great concept and safety blanket for poor farmers. However, I do have a few issues with it. The program thus far has had difficulty reaching a sustainable scale. Micro insurance programs have only been introduced as pilot programs in numerous countries around the world (India, Rwanda, Malawi to name a few). This may be because insurance programs are different than offering subsidies. It is difficult to offer insurance plans that are cheap enough for farmers to see the benefit of paying the premium. Additionally, the physical weather monitoring system can be considered a costly investment.
Kenyan society in particular has a negative reputation in Kenya, most likely stemming from the rampant corruption that occurs at even the highest level of the state bureaucracy. The program first needs to improve the reputation of insurance plans for these farmers by providing better marketing strategies in rural communities. The unique “pay as you plant” system offered in Kenya allows farmers to try out insurance for a small period of time, so they can learn to trust insurance. The pilot program has proved successful, so the expansion process in other districts across the nation seems promising.
In the wake of the unfortunate droughts currently facing East Africa, I hope the insurance programs already in effect are providing some sort of protection to the farmers experiencing not only starvation, but limited crop yields as well.
No comments:
Post a Comment