GEORGETOWN, Guyana, CCMC – The Caribbean Community (CARICOM) Assistant Secretary-General Joseph Cox, Friday described as “a significant milestone in our regional development” the launch of a regional economic, agricultural insurance program (REAP).
Addressing the initiative’s launch, Cox said it also marked the introduction of a private sector-driven agriculture insurance initiative for the region.
He applauded Barbados, Dominica, Guyana, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines for their pioneering participation in the initial phase and praised the Ministerial Taskforce on Food and Nutrition Security for its dedication to identifying suitable agricultural insurance schemes, a crucial objective of the 25 percent 2025 Initiative.
Cox said that a significant deliverable of the Special Ministerial Taskforce on Food Production and Food Security (MTF) is to assist with de-risking the sector by providing agricultural insurance for farmers within the CARICOM region.
“The long but rewarding efforts of all who have been involved in the process that has led us to where we are today are truly remarkable. This is a significant milestone in our regional development.
CARICOM member states are among the most vulnerable Small Island Developing States (SIDS) whose agriculture sectors remain highly exposed to the effects of climate change,” Cox added.
He said changes in weather patterns, heavier rainfall, and harsher dry seasons, among other things, continue to have disastrous effects on the agriculture sector’s output and productivity.
“If the advent of Hurricane Beryl has taught us anything, it is that we must have recovery and resilience plans in place that can respond to natural disasters, counterbalance GDP (Gross Domestic Product) losses, and mitigate the apparent negative impact on the economic livelihood of the people of our region.
“One can only reference the devastation caused to Dominica by Hurricane Maria, when the country lost 290 percent of its entire GDP overnight.
“In this regard, agriculture insurance plays a vital role for the Caribbean Community member states by protecting against climate change’s unpredictable and devastating impacts on agriculture.
“As the Caribbean faces more frequent and severe weather-related events, the importance of agriculture insurance in safeguarding farmers’ livelihoods and ensuring food security for the people of the region grows significantly,” Cox said.
REAP offers insurance products that provide direct payouts to cover production costs and business interruptions. Its objective is to ensure financial resilience, bolster food security, and promote healthier dietary habits across the region, which aligns with the key deliverables of CARICOM’s Special Ministerial Task Force on Food Production and Food Security.
Barbados-based Lynch Caribbean Brokers launched the initiative. Ali said it was important for regional countries to support it with research and development and data availability to reduce the instrument’s cost.
Cox told the launch that a recent report from the Food and Agriculture Organization (FAO) highlighted the significant financial losses experienced by developing countries due to crop and livestock production damage.
“Recognizing the severe effects of natural disasters and climate change, the region’s initiative aims to enhance food sovereignty and economic resilience by adapting to and mitigating these impacts.
“Agriculture insurance programs are essential in enabling farmers to invest in sustainable and resilient practices, mitigating climate-related risks, and facilitating quick recovery from natural disasters.”
He said agriculture insurance is a key component of CARICOM’s strategy to combat the adverse effects of climate change on agriculture and work towards the 25 percent by 2025 Initiative targets.
He said that beyond mitigating risks, agriculture insurance programs can stimulate private sector involvement and cross-border investments in the agricultural sector. By reducing these risks, these programs attract investments, promote innovation, and support growth in the industry.
Cox said the launch of this program exemplifies the collective commitment of CARICOM member states to sustainable development and resilience in the face of environmental challenges. He told other member states that they were encouraged to join the initiative to maximize its benefits throughout the community.
“As we continue to peel away the various layers of impediments to regional food and nutrition security, this is one of the many successes and innovative achievements to come as we march towards the realization of Vision 25 by 2025.
“As I said, this is a substantial effort and a big deal for agriculture and regional food security. The success of the REAP product will be a catalyst in de-risking the agriculture sector and creating the type of environment that will lead to the realization of an even more investor-friendly ecosystem for regional food and nutrition security,” Cox added.
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