70% of the global land is put to agricultural use, forestry and rang land. In Africa for example, agriculture is the source of 70 percent of full time employment, 33 percent of the gross domestic product and 40% of total export earnings.
78 calamities were experienced between the year 2003 and 2013 cause by various types of natural perils some of which include climate related events. Since the 1980’s this number has since doubled. In a span of 10 years, it has affected close to 9 billion individuals and caused over USD 494 billion in calculable harm.
Some of the other impacts of natural calamities to farmers include:
Due to an increase of calamities that are beyond a farmer’s control, it is necessary for a farmer to take precautionary measures to control the damage they might face. A crop insurance plan ensures that the stabilization of crop production is in place as well as reducing the negative effects of calamities to a farmer. The rapid advancement in farming technology has also necessitated crop insurance to manage the risks that may come due to the failure of such technology.
When a farmer adopts crop insurance they protect their crop from unforeseen challenges. Some of these advantages are:
Low income farmers with limited means are mostly devastated when natural disaster strikes. The need of purchase of a crop insurance plan will ensure compensation and state of the art technology and financial services that are crucial for the success of a farmer. Crop insurance also ensures that a farmer attains self-sufficiency and may not need to seek financial aid. It will also ensure the quality and quantity of produce is high.