How does weather-based crop insurance protect farmers from the impact of climate change?

Extreme weather conditions can have long-lasting effects on the farmer’s livelihoods. They destroy crops, assets and lead to many more nerve-racking consequences. To help them cope with weather destruction, financial services such as weather-based crop insurance can act as a relief for them.

The farmers and their families are more vulnerable to weather conditions to make them resilient to such incidences; insurance is the ultimate option. It enables farmers to get prepared for risks and emergencies. With insurance, farmers gain confidence to invest more in producing crops and deal with unforeseen weather conditions.

Farmers also dare to invest in the latest equipment by opting for agricultural machinery finance. Many agri finance companies in Maharastra and various other locations provide timely support to farmers to cultivate crops. With weather-based crop insurance, farmers feel protected from climate changes affecting crops. 

Furthermore, they can also opt for intelligent technologies and adopt sustainable food production methods. They can also go for various loans to help them invest in the latest technologies. It will produce more food and support farmers rising above the poverty line. Netafim Agricultural Financing Agency (NAFA) is one such agency helping farmers across India through financing solutions for climate-resilient, sustainable, and profitable farming.

The Government of India in 2009 directed the state governments to come up with strategies State Action Plan on Climate Change (SAPCC) to address climate change. There are 32 SAPCCs, out of which 23 mention that the Weather-Based Crop Insurance Scheme (WBCIS) is the best strategy to address the impact of climate change on agriculture.

Let us now dive deep into how weather-based crop insurance can protect farmers from climate change.

What Is Weather-Based Crop Insurance?

The weather-Based Crop Insurance Scheme (WBCIS) mitigates the risks of the insured farmers against the likelihood of financial loss on account of crop loss resulting from adverse weather conditions such as rainfall, wind, humidity, and the like. The crops covered under the insurance are food crops (cereals, millets, and pulses), oilseeds, and commercial or horticulture crops.  

The weather-based crop insurance scheme covers farmers availing the loans from the financial agencies for the cultivation. The sum insured is pre-defined and is determined on the cost of the cultivation, and the state decides it for each crop and district.

How Weather-Based Crop Insurance Protects Farmers from the Impact of Climate Change

Financial Security: Weather-based crop insurance provides financial support to the farmers in case of financial loss resulting from extreme destructive weather conditions. Farmers can rest assured and focus on cultivating crops by opting for agricultural machinery finance and other loans to implement the latest technology to produce high-quality food. Agri finance companies in Maharashtra like NAFA enable farmers to opt for more sustainable ways of food cultivation.

Helps Maintain Farmer Credibility: The insurance enables farmers to maintain their credibility by assisting them in repaying their loans despite losses incurring from crop destruction. Therefore, farmers can make the best use of loan facilities in cultivating the crops by availing the financial support from Agri finance companies.

It Stabilises Farm Income: It also helps stabilise farm incomes even when calamities hit and destroy the crops. It provides incredible financial support to the farming families to not affect their livelihood.

Offers Minimum Premium Facility: It is an excellent source of support for farmers via a minimum premium facility. The premium is so low that farmers can quickly pay without burning a hole in their pocket.

Farmers Can Adopt Advanced Agricultural Techniques: As farmers get protection with weather-based crop insurance, they can put their efforts into cultivating the best quality crops by using advanced agricultural techniques. At NAFA financing agency, we provide excellent financial solutions to enable smart agriculture and produce the best quality and high quantity food. It also allows farmers to generate high income through sustainable methods of agriculture.

It Gives Them Freedom From Debts: The fantastic facilities and support provided by the insurance protect farmers from climate change. And better options from the financing agencies who also offer modern farming methods to increase yield, farmers gain freedom from local money lenders. 

Conclusion

The above-mentioned innumerable benefits that farmers derive from weather-based insurance show how weather-based insurance acts as a boon to farmers. It helps them lead a blissful life by adopting the latest technologies, investing in sustainably producing better quality food, and earning a high income.