By Albert Makendenge

Agricultural insurance is a valuable business risk management tool that provides farmers with financial protection against production losses caused by natural disasters or perils such as drought, excessive moisture, hail, frost, wind, wildlife and many others. Losses are not only limited to natural disasters but can also come in to deal with market dynamics such declines in the prices of commodities. Agricultural experts have long called for farmers, both big and small, to cushion themselves against unforeseen events that they cannot singlehandedly control.

Agriculture is among the most profitable investments since it, if very well managed, may yield very huge returns within a short period of time. Being such a potentially well-paying venture, it is also very much prone to high risk and uncertainty. With a lot of money or capital as an investment for animal and crops, farmers find themselves risking to get profits. Therefore to be on the safe side, farmers need to take agricultural insurance to safeguard their investments. The major benefit of taking this form of insurance is that it aids in fighting poverty. Natural disasters are unpredictable and farmers without insurance run the risk of going broke if they cannot get any compensation whatsoever for any destruction to their investment. Farmers who buy insurance premiums have greater peace of mind in knowing that even if losses in crops, animals or equipment occur, they have a big advantage because they are in very good position to recover all those losses. They are sure of good compensation packages from the company providing insurance packages.

As clearly explained above, buying agriculture insurance is a very important investment which is meant to give farmers protection against any misfortune in the future. Farmers simply need to get in touch with any reputable agricultural insurance company, which will then inspect crops, animas and structures on the farm in order to advise the farmer on which premium to pay for full and comprehensive cover.


  1. It’s nice that you talked about how buying farm insurance is a very important investment that is meant to give farmers protection against any misfortune in the future. I was listening to a podcast of a farmer last night and I learned about the value of insurance. Farms are often volatile due to several factors, so having insurance would surely help a lot.

    1. Thank you for reaffirming that, farmers don’t alway know or think to get insuarance and they are often the most vulnerbale business models when it comes to unexpected loss.

Leave a Reply

Your email address will not be published. Required fields are marked *