Farmers in the country will benefit from an agricultural insurance package called Ghana Agricultural Insurance Pool (GAIP) in 2023 as part of measures to help increase agriculture production.
The insurance package, estimated at $400 million, is to provide enough cover for the sector as it continues to be one of the biggest contributors to Ghana’s Gross Domestic Product (GDP).
This was made known by the Finance Minister, Ken Ofori-Atta during the presentation of the 2023 “Nkabom” Budget on the floor of Parliament on Thursday, 24th November, 2022.
The budget is on the theme: “Restoring and Sustaining Macroeconomic Stability and Resilience through Inclusive Growth and Value Addition”.
“GAIP provides traditional agricultural insurance and index-based weather insurance products to commercial farmers and small-holder farmers. An estimated USD$400 million in agricultural insurance will be extended to eligible farmers in 2023,” he said.
Mr Ofori-Atta said the National Insurance Commission was spearheading the development of the insurance through the GAIP.
Traditional agricultural insurance pays the insured for the actual loss or damage incurred; however, traditional insurance is too expensive for most smallholder farmers and thus non-existent in most rural areas.
In the area of promoting organic fertilizer, Mr Ofori-Atta said the recent global crisis had severely disrupted inorganic fertilizer supply chains and has resulted in sharp increases in prices.
He said the Ministry of Food and Agriculture was intensifying efforts to promote the local production and use of organic fertilizers.
“Under the subsidy programme, the Ministry has increased the quota for organic fertilizer suppliers to cover the shortfall in supply of inorganic fertilizers,” Mr Ofori-Atta said.