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| Two men weeding a maize farm. Photo Credit: Business Day |
Farming is lucrative especially in Nigeria today and this is because the population of Nigeria needs adequate supply of food crops to sustain every family. Due to the growing population and economic hardship, farming should be treated as business and should not be meant for consumption alone.
It will be more beneficial to the farmer if he or she have their farms protected by insurance. Insurance is the only sure way by which Nigerian farmers especially in this period of growing insurgency and other natural disasters that may have the capacity to destroy farms.
What is insurance?
Insurance is an agreement, addressed by an arrangement, where an individual or entity gets monetary assurance or repayment against lose or damage from an insurance firm or agency.
Because natural disasters come most times without warning signals, so farmers may not be able to predict the future of their farms. Apart from Natural disasters, insecurity may also pose as another risk factor that may instigate the farmer’s fear.
To avert the risk and fear of the unknown, farmers need to handover the Rick to a company that may repay or pay for damages should there be any need.
Why Nigerian Farmers need to insure their farms
Just like we have mentioned above or earlier, because of the risk factors involved in farming, farmers need to insure their farms in Nigeria.
Insecurity for example, has posed a big threat to Nigerian farmers as most are not even involved in farming activities recently.
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Another reason why farmers ought to insure their farms in Nigeria is flood, this also posed another dangerous threat to farms in Nigeria as there are cases of flood annually especially farming around the coastal areas which are more prone to flood.
Which Insurance Company do local farmers in Nigeria need?
Local farmers in Nigeria need insurance companies that are closer to them. A farmer in Sokoto should not go to Lagos to insure his or her farm. It is more wise to consider the distance and proximity of quick.
Secondly, farmers should try to survey and get genuine companies that do not delay in paying premiums. Delayed premium could also delay the cultivation of crops in another farming season as that may be the only hope of the farmer getting compensation for his damaged farm.
Thirdly, farmers must consider companies that are licensed by the Central Bank. This is in order to avoid being scammed by companies that are not genuine as it is a common trend in Nigeria.
Conclusion
Insurance is very important for peasant farmers because it is the way to ensure that their farms are protected against any damage.