In a ground-breaking development, farmers can now insure their soil moisture levels with Agnovate Insurance. This new product, offered in partnership with Guardrisk, allows farmers to trigger claims as soon as their soil moisture markers indicate a risk in desired soil moisture levels – a first of its kind in South Africa.
Agnovate Insurance has a proven track record of designing new-generation insurance solutions within the agribusiness sector. With this new product, they have managed to offer farmers and key stakeholders in the agricultural supply chain the ability to insure soil moisture, something that has previously been a challenge due to national regulatory restrictions.
Soil moisture insurance is a proven product in many other parts of the world, but this is the first time it is being offered in South Africa. It will benefit dryland crop production sectors in agriculture, including grain, fresh produce, pastures, and natural grazing.
Soil moisture insurance through Agnovate will be available to large-scale commercial farming operations and small-scale farmers, although not yet available to urban farmers, says JG Shields, the managing director of Agnovate.
Long list of benefits
“The benefits of soil moisture insurance are numerous,” says Shields. “Farmers now have the ability to manage their soil moisture risk before they even have crops in the ground, enabling them to mitigate adverse soil moisture levels before it’s too late. They can manage their drought risk during critical plant growth periods, giving them greater control over their crops and ultimately leading to more successful harvests.”
In addition, this new product enables new generation off-balance sheet finance to farmers and covers various other supply chain role players’ exposure to farm-level risk. The full tech automation of soil moisture insurance means that there is almost no human intervention, and near real-time reporting is available to track soil moisture status. Finally, there is flexibility for insurance coverage and insurance rating options to meet budget and risk profile needs.
Livelihood protection
This development is a significant step forward for South African farmers, as it provides them with a new tool to manage their risks and protect their livelihoods. With the ongoing challenges posed by climate change and drought, this new insurance product will be a valuable asset for farmers across the country, vows Shields
- Agnovate Insurance is a proud partner of Guardrisk and IQ Logistica and is a registered South African insurance and financial services provider. Soil Moisture Insurance is available at www.agnovateinsurance.co.za.
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