By FAY SIMMONS

TRIBUNE Business Reporter

jsimmons@tribuneemedia.net

THE GOVERNMENT is exploring crop insurance as a way to unlock more financing for Bahamian farmers, with officials noting protection against natural disasters could give lenders greater confidence to fund agricultural expansion.

BAIC General Manager Troy Sampson said crop insurance is a critical component of the government's efforts to expand local agricultural production because farmers will need additional resources, including land, seeds and funding, to meet growing market demand.

“One of the most critical supports that they will need is funding, and most lenders are reluctant in a lot of cases to loan any significant amount of money, unless whatever is being considered the collateral or the product to be produced has some form of insurance in the event it fails through some natural disaster,” said Mr Sampson.

He said insurance could provide greater comfort on the financing side while protecting farmers and those providing funding support from catastrophic losses caused by weather-related events.

“The crop insurance that may not necessarily save the crops from any damage, but it — well, it prevents the farmers and anybody that may be giving farmers funding support, keeping them from any catastrophic losses that may happen as a result of any weather-related events, which permits them to get started back in the growing phase a whole lot faster than if it wasn't in place,” said Mr Sampson.

The initiative is being developed in partnership with an insurance provider, although officials said the details, including the provider and whether government will subsidise farmers' premiums, have not yet been finalised.

Mr Sampson said the proposed insurance initiative remains in development noting the government has held productive meetings and hope to concretise the mechanism in the near future.

“So all of that is still in development, and I think once that's concretized, Minister, we'll probably have another one of these meetings to say all the I's dotted, T's crossed, and the signatures are on the line. But it's coming,” said Mr Sampson.

The government has also begun gathering data it says will be necessary to determine farmers' eligibility and design an insurance initiative suited to the realities of the sector.

The Ministry is encouraging farms to self-register through the agriculture data platform developed by IICA Bahamas following this year's National Agriculture Census pilot, which was the first such census programme in more than 30 years.

Minister of Agriculture and Marine Resources Jomo Campbell said reliable data will be critical to strengthening the sector against natural disasters, directing resources more effectively and developing programmes based on farmers' actual needs.

“Data is key. The information collected will help us strengthen the sector against natural disasters, direct resources more effectively, and develop programs grounded in the actual needs of our farmers,” said Mr Campbell.

Mr Sampson said the insurance mechanism is being considered as part of a broader effort to put the necessary financial and commercial supports in place as the government seeks to expand local production and reduce food imports.