Analysis: Can Agricultural Insurance Help Guarantee Post-Pandemic Food Security?
In a world in which radical climatic events are increasingly affecting farm production, agricultural insurance is coming to be seen as a key solution for producers to bolster economic and food security.
The global agriculture industry suffered significantly as a result of Covid-19. Lockdown measures implemented to stop the spread of the virus led to severe labour shortages, with crops often left to rot in fields, while disruptions to local and international supply chains meant that many goods simply never made it to market.
While these factors placed a significant strain on global food supplies, a series of natural disasters compounded the issue.
For example, parts of Africa, the Middle East and Asia experienced the worst locust infestation in decades, decimating yields and resulting in $8.5bn in crop and livestock losses in East Africa alone. This subsequently placed pressure not only on small-scale farming businesses but also local food supplies.
Photo courtesy of A’Melody Lee / World Bank.
Source: Oxford Business Group (link opens in a new window)
- Agriculture, Coronavirus, Finance