Opposition Member of Parliament and Shadow Minister of Agriculture, Vinceroy Jordan, has expressed cautious support for the forthcoming Regional Economic Agri-Insurance Programme, which is set to launch in Guyana next month. While Jordan acknowledged the initiative’s potential advantages, he noted that a range of challenges could impact its effectiveness.
The Regional Economic Agri-Insurance Programme, introduced at the Arthur Chung Conference Centre on July 26, 2024, aims to offer farmers comprehensive protection against the impacts of natural disasters and climate change. The programme, which could see its official rollout in Guyana by September, seeks to provide customized insurance solutions across the Caribbean, utilizing a parametric insurance model that relies on weather data to trigger automatic payouts. This system is designed to expedite financial relief for farmers affected by adverse weather conditions.
During his exclusive interview with the Guyana Standard, Jordan recognized the initiative as a significant and timely development for the agricultural sector in Guyana, given the country’s geographic and climatic vulnerabilities. However, he expressed several concerns regarding the programme’s implementation and its potential effectiveness.
One major issue he highlighted was the need for government subsidies to cover the initial premiums. Jordan noted that without such subsidies, many farmers might be unable to participate due to the high costs associated with the insurance.
“The premium will have to be subsidized by government during the initial phase, if not farmers would not be able to participate,” he noted.
He also questioned whether the insurance programme would adequately address the diverse needs of the agriculture community. Jordan inquired whether the insurance would cover both livestock and crops or if it would be biased towards one type of farming.
He also raised concerns about whether the scheme was tailored to accommodate small-scale farmers who might face disadvantages due to the economy of scale. Additionally, Jordan sought clarification on how the programme would handle claims related to natural disasters and the specific triggers for these claims.
Jordan further pointed out several potential challenges in the programme’s implementation. He mentioned existing land tenure issues and the lack of reliable data as significant obstacles that could affect the effectiveness of the insurance scheme.
The varying risk levels associated with different farming practices and the pricing structure for commodities were also noted as areas of concern. Jordan emphasized that the low level of risk awareness and the absence of an insurance culture among farmers could undermine the program’s success.
Moreover, Jordan highlighted concerns about the political context in Guyana, which he felt could influence the programme’s execution. He referred to situations with disaster relief distribution, which he described as politically motivated and biased. Jordan questioned whether the government would establish a clear grievance mechanism for addressing disputes and whether the premium subsidies would be distributed equitably and focused on small farmers.
Despite his reservations, Jordan did not entirely dismiss the insurance programme. He acknowledged its potential to enhance agricultural resilience in the Caribbean but stressed the importance of addressing the outlined challenges to ensure it meets its objectives and effectively supports the farming community.
