The State Minister for Luwero-Rwenzori Triangle, Alice Kaboyo, has urged farmers to embrace the Uganda Agriculture Insurance Scheme to protect themselves against financial losses caused by climate change and other agricultural risks.
The scheme, introduced by the government in partnership with private insurance companies, is designed to compensate farmers for losses resulting from damage to crops and livestock caused by fire, drought, flooding, landslides, hailstorms, windstorms, malicious damage, riots and strikes, as well as uncontrollable pests and diseases.
Under the scheme, farmers contribute 10 per cent of the insurance premium, while the government subsidises 4.5 per cent. In drought-prone areas, the government intends to cover up to 80 per cent of the premium to make agricultural insurance more affordable.
Claims are expected to be settled within six weeks after a farmer notifies the insurance company of a loss.
On Friday, Kaboyo launched the scheme in Luwero Town Council, urging farmers to take advantage of the initiative, which she described as secure and affordable.
Kaboyo said the scheme comes at a critical time when farmers continue to suffer losses due to prolonged drought and other climate-related challenges.
She added that while the government is pursuing other interventions, including irrigation, to mitigate the effects of drought, farmers should also embrace agricultural insurance as an additional measure to safeguard their investments.
To benefit from the scheme, farmers in Luwero have organised themselves under the Luweero District Farmers and Housing Cooperative Society, which mobilises members and facilitates their participation in agricultural initiatives. The cooperative has approximately 5,000 members.
The cooperative’s secretary, Eddie Mugerwa Biganiro, welcomed the scheme, describing it as an important intervention at a time when climate change continues to affect agricultural production.
Mugerwa said many farmers had suffered substantial losses in previous seasons without any reliable means of recovering their investments.
He noted that agricultural insurance would give farmers an opportunity to receive compensation in times of crisis while contributing a relatively small amount towards premiums.
Samuel Lubega, a farmer from Kabakedi Village in Luwero Sub-county, said he lost a coffee plantation valued at 10 million shillings due to prolonged drought.
Lubega welcomed the introduction of the scheme, saying it could provide farmers with a safety net against similar losses in the future.
Harrison Businge, a consultant with Opportunity for Community Empowerment Limited, said agricultural insurance could restore confidence among farmers who had considered abandoning farming after suffering losses without compensation.
Businge noted that the scheme could encourage farmers to continue investing in agriculture by providing a mechanism for managing risks associated with climate change and other unforeseen disasters.
The Uganda Agriculture Insurance Scheme is implemented through the Agro Consortium, a coalition of ten insurance companies established to provide agricultural insurance services under the programme.
The participating companies are APA Insurance (Uganda) Limited, CIC General Insurance Uganda Limited, First Insurance Company, Goldstar Insurance Company Limited, Jubilee Insurance, Lion Assurance, NIC General Insurance Company Limited, PAX Insurance, Phoenix of Uganda Assurance Company Limited and UAP Insurance Uganda Limited.
The scheme is intended to strengthen farmers’ resilience by reducing the financial burden of agricultural losses and encouraging continued investment in crop and livestock production-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
