Insurance – Farming is profitable, especially in Nigeria today, because the Nigerian population need a sufficient quantity of food crops to maintain each family. Farming should be treated as a business, not just for consumption, because of the expanding population and economic hardship.
If a farmer’s farm is protected by insurance, it will be more beneficial to him or her. Insurance is the only sure option for Nigerian farmers to protect themselves, especially in this time of rising insurgency and other natural calamities that threaten to damage fields.
What exactly is insurance?
Insurance is a contract in which an individual or entity receives monetary assurance or compensation from an insurance firm or agency in the event of a loss or harm.
Farmers may not be able to anticipate the future of their crops because natural calamities rarely come with warning signs. Aside from natural calamities, insecurity may be another risk factor that causes farmers to be fearful.
Farmers must hand over the Rick to a firm that can compensate or pay for damages if necessary to avoid the risk and dread of the unknown.
Why do Nigerian farmers need agricultural insurance
Farmers in Nigeria must insure their farms, as we indicated above or previously, due to the risk elements involved in farming.
Insecurity, for example, has presented a serious danger to Nigerian farmers, as the majority of them have recently stopped farming.
Flood is another reason why farmers in Nigeria should insure their farms. Flood is a significant threat to farms in Nigeria, as there are cases of flood every year, especially in coastal areas that are more prone to flooding.
Local farmers in Nigeria use the services of which insurance company?
In Nigeria, local farmers require insurance providers that are closer to them. A Sokoto farmer should not travel to Lagos to insure his or her farm. It’s better to think about the distance and proximity of swift.
Second, farmers should conduct research to find reputable firms that pay premiums on time.
Delay in payment of the premium may also delay the planting of crops in a subsequent farming season, as this may be the farmer’s sole chance of receiving compensation for his damaged farm.
Finally, farmers should think about companies that have been licensed by the Central Bank. This is to avoid being conned by impostor companies, which is a typical occurrence in Nigeria.
Summary
Peasant farmers need insurance since it is the only method to assure that their farms are protected from destruction.
Source: Nyscinfo