Dive into a new era of farming resilience with Agnovate’s soil moisture insurance. Tailored for farmers of all shapes and sizes, lenders, and supply chain role players, this innovative solution safeguards their interests from unpredictable climate-related twists.
Designed to provide peace of mind to farmers in safeguarding their operations against hazards related to abnormal soil moisture levels, Agnovate’s soil moisture insurance is curated for farmers of all shapes and sizes, lenders, and supply chain role players.
You may be curious about the necessity of this insurance. As per JG Shields, the managing director of Agnovate, soil moisture insurance holds particular significance for dryland farmers and those operating in high-risk agricultural regions.
South Africa is an extremely diversified country with high and low rainfall regions. As a result, the soil types and soil moisture vary across regions. Shields said that the majority of the rainfed agriculture areas receive relatively little rainfall compared to many other countries. Therefore, farmers rely heavily on soil moisture to sustain crops throughout their life cycle.
“We can have soils in a fairly dry arid area where rainfall is fairly scarce, but the soil type can be of such quality that it keeps soil moisture captured for quite a long period,” he said.
The benefits of soil moisture insurance include mitigating financial risks associated with droughts or insufficient moisture levels in the soil.
Insurance based on what you can afford
Shields said Agnovate aims to be inclusive with its soil moisture insurance offering. The product is suited for emerging farmers, small-scale farmers, and large-scale commercial farmers.
“What we are trying to do is to unlock finances for our farmers. We do that by mitigating the risk of non-delivery or repayment default for those farmers who have borrowed money from banks.
“The product affordability is designed in such a way that you can play with several variables, for example, a farmer can select their insured value as well as a premium based on your affordability and cash flow,” he said. Shields emphasised that their offering is therefore not a one-size-fits-all. This means that a farmer can purchase insurance cover based on their needs and cash flow profile.
Shields explained that risk is modelled on a 10 by 10-kilometre pixel basis.
“Everybody will understand that if you go further east in the Highveld in South Africa, we have increased rainfall and more stable conditions. Conversely as you head West, it becomes drier and more prone to volatility,” he said.
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Satellite-driven data
Agnovate’s soil moisture insurance leverages open-source satellite data for modelling and measurement. The soil moisture is measured by satellite and modelled on an index basis.
Using service providers such as the European Space Agency, the satellite data helps inform farmer’s needs when it comes to soil moisture insurance, and according to Shields, it is one of the greatest ways to guarantee that farmers are informed accurately.
“We live in a technology era. We are very fortunate to have numerous satellites orbiting the earth, capturing images and do all sorts of measurements of our planet, more specifically in nature, and soil moisture is one of them,” he adds.
- Don’t gamble with your farm’s success. With Agnovate’s innovative soil moisture insurance, you can safeguard your livelihood against the volatility of soil moisture levels. Visit www.agnovateinsurance.co.za to get your online SMI quotation or call them on 061 316 3972.
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