Why Is It Important to Have an Insurance When You Own a Farm?
If you look at the agricultural industry today, you will find it is one of the most lucrative investments for a farmer and the nation. After a short period, farmers can get more returns than their investment. They invest hugely in both crops and animals to get large volumes of profit. They take many risks. However, in the midst of adopting these risks, if they do not have agricultural insurance, they will not be protected against losses when adversity strikes.
The importance of insurance for agriculture
Agriculture insurance entails the paying out of insurance premiums to insurance companies. The process here sees the representatives of the company visiting the farm, inspecting the crops, animals and the infrastructure. By the above inspection, an evaluation is conducted. Once complete the farmer receives a quote for premium payment. The insurance starts and the farmer are protected against misfortune shortly.
Why should farmers take agricultural insurance?
Agricultural insurance protects a farmer from the cycle of poverty. If you take a look at the life of a farmer, he invests a lot of seeds, livestock and other infrastructure to get the highest possible yield. A good produce entails a good profit. However, in the event of a calamity, if he is not protected well enough, he will lose everything. This makes him poor again. This is why agricultural insurance is the need of the day. The insurance company will compensate the loss, and so the farmer is protected financially.
Agriculture might be very profitable however it entails many risks, and so it is crucial for the farmer to bank on insurance. They can get the peace of mind that in the event of any calamity they are protected.
Moreover, in modern times, you will find that farmers are investing hugely in technology. This is why it is important for them to understand the fact that new investment on these technologies are risky if they do not have the adequate protection.
Understanding agricultural insurance
It is important for the farmer to know what agricultural insurance is and means. Most farmers lack the education about insurance especially in nations like Tanzania. It is here that the government and other bodies need to step forward to wipe away the ignorance. Farmers should be able to choose the right insurance policy for their farm.
Insurance premiums should be affordable for the farmer to take. He should be able to understand the unique terms and conditions of the insurance policy document before he signs on the dotted line.
Governments are now playing an important role when it comes to the insurance premiums of the farmers. They are providing subsidies to reduce the insurance premiums available to the farmer. In this way, insurance policies are now affordable. More and more farmers are opting for agricultural insurance. It is helping them to remove the stress and get the peace of mind that they deserve when it comes to farming with adequate protection!