This system will be designed to bypass months of administrative delay. [Photo: FILE]

Crop farmers can soon expect an insurance scheme dedicated to protecting them from the escalating impact of climate change and natural disasters.

Speaking in Parliament, Minister for Agriculture Tomasi Tunabuna confirmed the government is evaluating parametric insurance models to accelerate recovery after cyclones and floods.

The insurance initially established to support the sugar industry will soon expand to agricultural insurance, providing insurance cover to farmers in the crop agriculture sector.

Initially established for the sugar industry, discussions are now underway to expand the agricultural insurance initiative to cover the broader crop sector.

“I would like to outline a strategic shift in our national policy; the transition towards crop insurance as the primary mechanism for covering rehabilitation costs, building resilience, and an investment-ready sector.”

The Minister adds that the government is prioritizing parametric insurance, where payouts are automatically triggered by weather data such as rainfall thresholds or cyclone wind speeds.

“The wind hits a certain speed, and payout is triggered; the rain exceeds a certain level, and the payout is also triggered. The advantages are clear: speed payout can reach farmers in days, not months, allowing them to replant immediately. There is transparency, there is no dispute over the value, and the data speaks for itself.”

The Minister further added that while parametric micro-insurance has already seen small-scale adoption, the Food Crop and Livestock Council is actively working with stakeholders to boost participation.

This rapid-payout system will be designed to bypass months of administrative delay, allowing farmers to replant within days and maintain national food production.