South Africa’s agricultural sector faces heightened vulnerability due to external factors such as unpredictable weather, pest infestations, and market volatility. These challenges threaten farm productivity and overall sustainability, underscoring the crucial need for customised agricultural insurance solutions that cater to the diverse needs of small, medium, and large-scale farmers.
Pascal Siphugu, managing director at Land Bank Insurance Company, a subsidiary of Land and Agricultural Bank of South Africa (Land Bank), discusses comprehensive cover for personal and farm assets under a single policy.
Staying in control
According to Siphugu, insurance provides financial stability and protection for farmers’ investments in crop production and agricultural assets against perils over which they have no control.
“Insurance is a key instrument for asset protection and wealth preservation. The main aim of asset insurance is to restore the insured to a position they would have been before suffering a loss.
“The loss could be fire, theft, accidental damage, and so forth; thus, insurance plays a critical role in preserving the gains of the farmer’s hard work and provides certainty for the future availability of assets to help the farmer go about their daily work,” explains Siphugu.
The episode also unpacks why such insurance should form part and parcel of every farm’s operation to drive long-term sustainability, the need for farmer education and insurance literacy, and more.
In this episode, he also discusses:
- What type of assets are covered under the asset insurance policy?
- How Land Bank continues to support farmers in Mzansi and more.
Want to know more? Listen to the full episode of Farmer’s Inside Track.
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