Abuakwa South Member of Parliament Dr. Kingsley Agyemang has called for intensified government education on agricultural insurance, describing it as crucial protection for Ghana’s farmers against devastating climate shocks and disease outbreaks.
Speaking on Adom News, the insurance expert emphasized that while some companies provide agricultural pool policies, awareness and uptake among farmers remain extremely low despite repeated disasters wiping out years of investment.
Agyemang stressed that proper insurance awareness would reduce government’s heavy financial burden of compensating farmers, as occurred during the 2024 drought and livestock disease outbreaks.
The MP’s intervention comes as Ghana grapples with increasing climate-related agricultural losses. In October 2024, Ghana purchased its first-ever sovereign drought insurance policy to protect vulnerable communities and the agricultural sector from potential drought impacts.
Dr. Agyemang noted that although insurance companies offer agricultural coverage, farmer participation remains insufficient to provide meaningful protection during disasters.
“Over the years, cocoa has been the backbone of Ghana’s economy, yet government has not shown enough interest in ensuring all cocoa farms are insured. This must change if we are to avoid dire consequences in the event of future disasters,” he cautioned.
The cocoa sector particularly requires attention, given its vulnerability to climate risks and diseases. Current initiatives include cocoa yield index insurance covering drought, pests, and diseases, with projects aimed at enhancing insurance adoption through subsidies.
Research indicates significant gaps in agricultural insurance penetration. Studies show only 30% of farmers with crop insurance knowledge understand it provides compensation during uncertainties, while others view it merely as government support.
Pilot programs have demonstrated insurance effectiveness, with participating farmers receiving payouts of up to 200 cedis covering 80% of drought-related crop losses, combined with low-interest loans.
Dr. Agyemang urged farmer associations including peasant, cocoa, fish, and pig farmers to integrate insurance as a vital component of their operations, emphasizing that disasters such as droughts, floods, bushfires, and livestock diseases repeatedly devastate unprotected farms.
The MP concluded by urging government to champion the cause, stating “Education on insuring farms must be effective from now. Government must lead the charge by encouraging farmers to take insurance covers to safeguard their farms.”
Agricultural insurance in Ghana aims to provide financial protection against crop failure from natural disasters such as droughts, floods, and pests, helping farmers maintain livelihoods and continue production.
The lawmaker’s call reflects broader recognition that climate change is intensifying agricultural risks across Ghana. Despite serving as a reliable risk mitigation instrument for climate-related hazards, agricultural insurance penetration among smallholder farmers remains persistently low.
Research shows cocoa farmers near disaster-prone regions are more inclined to obtain insurance due to higher crop damage risks, though overall participation rates remain insufficient.
Dr. Agyemang emphasized that prioritizing agricultural insurance is essential for building sector resilience, securing rural livelihoods, and protecting Ghana’s agricultural economy from increasingly unpredictable climate impacts.
The MP’s expertise in insurance, combined with his legislative position, positions him uniquely to advocate for policy changes that could transform agricultural risk management in Ghana’s farming communities.
His calls align with international best practices recognizing agricultural insurance as fundamental to climate adaptation strategies, particularly in developing countries where smallholder farmers bear disproportionate climate risks.
