Saving my farming investment!

The world depends upon agriculture for food, green energy and clothes. There about 1 billion people who are employed agriculture. Agriculture is an important sector in every in this word. For most of the countries in world depends on their agricultural produce. It stresses the importance of agriculture in whole world should not be discounted. However, farmers are faced with different realities in the environment. Amidst the importance of agriculture, farmers are continually challenge by climate change. Climate change affects the weather pattern in world which makes it harder for farmers to produce crops. The world is not facing the extremes of the environment. When it rains it heavily rains and when it is dry there is a presence of drought.


How can we shield ourselves with varied problems in the environment? The answer, lies in every one of us. We need to do things in order to protect the environment. But how? Farmers are already having losses in production dues climate change. Farmer are losing because it is either their field is flooded, is in heavy drought and even pest attacks. All of these, is because of the variable changes in the environment. Can an individual farmer dodge all of these problems?


What is the solution? Crop insurance!


In order to doge to all of these problems we need crop insurance. Crop insurance provides farmers the guarantee that they have a fall back when things are worse. We can never predict the future whether a storm will wipe out our investments. You might wake up one day that our fields are experiencing drought. You can never predict when pests will attack your farm. Farming is a business and insurance should be taken into a serious matter.


Why farmers don’t like crop insurance?


Farmers don’t like crop insurance because some of them doesn’t really see the need of having one. It seems that crop insurance is only an additional expense in their farm. The question is can we predict future circumstances? Well, we don’t that is why we insurance. Other farmers, they think that it is too expensive to buy one. Is really expensive? Most of these crop insurances are state owned programs. There might be also crop insurance in your country that is free! How much does takes to ask? I think it is for free right?

Crop insurance saved my farm


I have met this farmer in the Philippines, his name is Ricardo. Ricardo plant watermelon in his area. The farm gate price of the watermelon in his area was 30-40 pesos per kilo. The equivalent price is close to one dollar per kilo and he said that his expenses is almost half of his income. That expenses include the transportation, fertilizers and etc. He has 2 hectares of watermelon farm in the Philippines. The premium of the crop insurance in the Philippines is 2% to 7%. In his case, the estimated income was 15,000 kilograms per hectare. His estimate income is 900,000 pesos at 30 pesos per kilo. He was charged with 5% premium on the high value crops.


Mister Ricardo paid around 45,000 pesos for the said insurance. I asked him “ Why did you buy crop insurance in your farm?” , he replied “I am afraid the current climate pattern in my area and I have experience such disaster last year”. Two weeks before harvest, his farm was flooded because of a strong storm that poured heavy rains. All of his watermelons was wipe out. He was totally upset because some of his live stocks were also affected. Luckily, crop insurance saved his farm and investments. He was paid by the PCIC after several weeks after the farm visit.


Regret will always be at the end


A farmer who was also in the same area is Mario. This man is connected with a large company. He was contract grower which means everything that he produces will be should to that company. The company will set standards on that fruits will be good for processing. However, when this storm struck his area. He wasn’t ready for this. All of his investments were all gone in just one blink of an eye. Right now, Mario is now retired and enjoys his retirement but he still pains for what had happen with his papaya farm.


What is your crop insurance story?


I believe some of our readers have also experience a similar experience with Mister Ricardo. Some maybe have experience a bitter end in his farming career like Mario. However, it boils down to what how important is crop insurance? Crop insurance nowadays should be consider not only an additional expense in the farm but a protection in farm. We need to protect our farm from things that might harm our investments. These natural phenomena are like thieves in that night that knock you down. Will buy crop insurance or not? Well, it is up you!