My mother and integrated risk management: transforming lives requires an all-round approach
In this blog, our fellow Jackline Chemutai takes us to remote and rural Kenya, where many smallholder farmers face challenges, such as limited access to farming resources and poor delivery in rural parts of the country. Integrated risk management can address vulnerabilities throughout the agricultural value chain, increasing access to resources, facilitating knowledge transfer, promoting public-private partnerships and expanding climate risk insurance programmes.
I come from a remote and marginalized part of Kenya. In areas like that, my mother’s struggles as a smallholder farmer are all too familiar. Like millions of other farmers around the world, she faces numerous challenges that hinder her ability to thrive. There is the constant threat of weather extremes, made worse by climate change. Limited access to essential resources makes my mother’s journey even more difficult. Those resources include credit, farm inputs, markets for her crops and financial services like credit and insurance that can mitigate the impact of risk events.
Behind most of these challenges is one of the most frustrating hurdles my mother encounters: ‘last-mile delivery’ — or rather, its absence. The tools and support she needs are all available in Kenya. But they simply do not reach her.
Five years working in agricultural insurance have brought that ‘last mile’ sharply into focus when it comes to insurance protection. Timely and affordable insurance coverage is not available in remote areas. This leaves farmers like my mother trapped in constant uncertainty, unable to escape the nightmare of losing their crops to unpredictable weather, pests or diseases.
Integrated risk management offers a path towards transforming the lives of smallholder farmers. This approach recognizes that agricultural systems are highly interconnected: it aims to address vulnerabilities throughout the value chain with a holistic approach.
I recently had the privilege of participating virtually in a panel discussion at the Microinsurance Network member meeting in Luxembourg. The meeting was an opportunity for insurance experts worldwide to explore the latest developments, trends and innovations in inclusive insurance. Our panel focused on “Building Resilience for Smallholder Farmers”. The overall theme was “Risk Layering”, i.e., integrating agricultural cover with other types, such as health insurance. I shared insights on the importance of integrated risk management in enhancing smallholder resilience using two compelling cases:
Case 1: Syngenta Foundation’s Farmers’ Hub. This model has revolutionized the way smallholders access inputs, machinery, market information and financial services. Farmers’ Hub acts as a knowledge and resource centre bridging knowledge gaps and providing access to vital resources to solve the last-mile problem. By equipping farmers with information, training and service links, this integrated approach empowers them to make informed decisions, adopt climate-smart practices, increase their productivity and tap into profitable markets. The Hub brings essential resources to the doorsteps of those who need them most.
Case 2: The Government of Rwanda’s Crop Intensification Programme and National Agricultural Insurance Scheme. The Crop Intensification Programme encourages farmers to adopt improved seeds, sustainable farming practices and climate-smart techniques. This strengthens their resilience to climate change and other risks, leading to improved productivity and income stability. The integration of insurance through the National Agricultural Insurance Scheme provides a crucial safety net: it protects farmers’ incomes and enables them to access credit for long-term growth.
These two examples highlight the transformative power of integrated risk management. By addressing the multifaceted challenges faced by smallholder farmers, they create a more favourable environment for their success.
In my view, development partners, governments, the private sector, insurers, civil organizations and other stakeholders can do five things to improve access:
- Strengthen last-mile delivery: Focus on improving logistical networks and infrastructure to ensure the timely and affordable delivery of essential resources to remote areas. This will bridge the gap between farmers and the tools they need to thrive.
- Enhance access to resources: Develop innovative financial products and mechanisms that facilitate smallholders’ access to inputs, credit and markets. Promote inclusive financial services and explore new technologies to streamline processes and reduce costs.
- Invest in knowledge transfer: Prioritize capacity-building programs and extension services that provide farmers with the knowledge and skills needed to adopt climate-smart practices, good agronomic techniques and effective risk management strategies. This will empower farmers to make informed decisions and adapt to changing conditions.
- Promote public-private partnerships: Foster collaboration between governments, private companies, insurers and civil organizations to pool resources, expertise and technology. This collaboration can generate innovative solutions and risk management strategies tailored to the needs of smallholder farmers.
- Expand climate risk insurance: While insurance is not a standalone solution, it plays a crucial role in building resilience. Governments and development partners should expand climate risk insurance programs and ensure their affordability, accessibility and relevance to farmers.
Integrated risk management is not just a concept; it is a pathway to sustainable development and resilience for smallholder farmers. It can help transform the lives of millions of farmers like my mother.
