Seed Producer Cooperatives benefit from crop insurance in eastern part of Ethiopia

Towards strengthening the stability of Seed Producer Cooperatives (SPCs) and protect them against losses caused by crop failure, one of BENEFIT-ISSD’s activities focus on piloting crop insurance for SPCs. Following an agreement made in 2017 between Chercher Odabultum Farmers’ Cooperative Unions (COBFCU) and the Oromia Insurance Company (OIC), Daro Gora SPC collected the first payment due to very poor 2018 rainfall performance in West Hararghe Zone. The payment that was based on Multiple peril crop insurance (MPCI), was worth about 900,000 Birr for a partial claim of 40% crop failure on 80ha of land.

The agreement covered three SPCs (Daro Gora, Milkessa Lafto Goba and Misoma Gudina) and was made with a 450,000 Birr capital to claim 9 million recoveries for complete loss that may happen in 2018. A total of 420 SPC members who were directly affected received payment from 1700 birr to 7775 birr. Farmers who benefited from this pilot insurance scheme noted that the effort has increased their confidence and commitment to make long term plans for their seed business.

ISSD insuarnce pic2

“I never thought insurance was available for farmers and crops,” said Kebede Ogecho, Daro Gora SPC members in Guba Koricha, father of eight. “We thank the Union for facilitating this insurance scheme. This initiative created motivation among members and non-members to invest more in seed production business”.

 

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