Crop Insurance to cope up agricultural hindrances!

By Esubalew Dires

Organization for Rehabilitation & Development in Amhara (ORDA) is striving hard for livelihood improvement and social transformation of the poor in multifaceted developmental agendas of the region. ORDA funded by Oxfam America has put crop insurance project into practice in Libo Kemkem Woreda Michael Debir pilot kebele. The project has four major risk resilient strategies (R4) like risk reduction, risk taking (taking loan for productive investment), risk transfer (insurance) and risk reserves (savings). 

 Crop insurance secures farmers from migration to other areas due to risk of loss of crop production in case of unpredictable rainfall. It is a type of risk management (such as: flood, snow, weed and insecticides) in which the risk of a loss is directly transferred to the insurer. Nowadays, climate change has a depressing impact on production. Hence, being member of the insurance is very much important to safe guard our farmers from challenges. However, farmers in the woreda are now practicing it only in the periods where rain is scarce during sowing dates and flowering stages.

The project is basically targeted to improve the livelihood of farmers through various means.  The establishment of village saving and loan group paves a fertile ground to get loan and engagement of different income generation activities which significantly played role to own assets. Crop insurance was initially started at Michael Debir Kebele containing 2 hundred members but now it’s expanded to four extra kebeles (Shihoch Tehara, Birkutie, Ginaza and Tara Gedam) benefiting over 1895 households.

ORDA is distinct in its feature that the organization is typically carrying out development interventions after a thorough discussion is made with target beneficiaries. Hence, awareness training was offered for more than 3 thousand farmers. The training resulted in building farmers’ awareness and climate of confidence with regard to crop insurance and related risk of loss of crop production.

ORDA established 83 rural based saving and loan groups through which each group contains 20 villagers organized around their  residence and R4 project assisted beneficiaries to save 453 thousand birr. The project linked 463 households (124 FHHs) to financial institutions and they are involved and are being benefited from sheep rearing and fattening, apiary, poultry and crop trading and café service.                  

Crop insurance (R4) is contributing much in project intervention kebeles by implementing soil and water conservation, area closure and planting of seedling. As a result, those degraded areas have started rehabilitating. Farmlands which lost its fertility due to flood and erosion around Girargie, Gum sergo, Aba Shama, Selelkula and Mizla watersheds are now getting renewed/improved in short period of time. The project also has launched organizing jobless youths on watersheds to hold them in apiary. Like crossing two hurdles with one leap, ORDA funded by Oxfam America is aggressively assisting unemployed youths and poor farmers to eradicate extreme poverty. Far more, the project is fruitful in carrying out climate change mitigation activities.  Improved crop varieties (potato, wheat, maize and tef), fruits and vegetables and improved washera breed has also been delivered to project beneficiaries. 

Young farmer Tigabu Motbaynor, who is father of three children, is a resident at Libo Kemkem woreda Michael Debir kebele. He is delivered improved crop varieties of wheat and potato from R4 project.  Farmer Tigabu is also part of the saving group. This young farmer is now capable of fulfilling his children stationary and educational materials. He verified that he has changed his house from a small hut to a new home with corrugated iron. This young farmer also owns 5 ewes and a washera wether breed.

Farmer Melaku Yalew who is living in Libo Kemkem Birkutie kebele, has four children. He became member of crop insurance since 2014 and benefited an improved wheat seed which helped him to earn better production. Hence, R4 plays a paramount role in securing food at household level.  

 Farmers are actively engaged in seed multiplication and watershed development. A saving group organized by the initiative of ORDA called Abebayehu saved over 5 thousand 3 hundred birr. The project linked saving groups with Rib union which helped him get a 5 thousand birr loan and involved in sheep & goat rearing and fattening. Currently, farmer Melaku raised his goats from 3 to 7. Crop insurance delivered farmers orange and mango seedlings and tomato seeds so as to produce it with his irrigable land. The farmer said, “For longer years, I’m poor and a safety net user; however, I couldn’t change my life even a leap. But ORDA does. We are predominantly changed in attitude and our engagement in IGAs resulted in improving our livelihood.”

Though Ethiopia is a country endowed with rich natural resources, immense water bodies, and diverse agro-ecologies, vast and fertile land, but still people are suffering in poverty and drought. Surprisingly, the country’s rich natural, historical, cultural and archeological heritages are not that much visible globally. Outsiders recognize Ethiopia as poor, a country of drought, poverty-stricken and war-ravaged.  So, shouldn’t it be last to be shy of poverty? We never have other option except closely working together in harmony. Hence, it’s the assignment of each citizen to carryout developmental interventions in lighting up livelihood changes and social transformation particularly in the region generally throughout the country

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 Citizens are yet living under poverty.  Farmer Sifrash Dagnaw is to be mentioned forefront. She is living in a small village called “chuchiba” Shihoch Tehara Kebele -10 kilometers far from Adis Zemen town.  Farmer Sifrash tested the ups and downs of life. She is growing four of her children in misery of life. W/ro Shifrash has started looking the dawn of hope for life. It was really hurt touching to hear about her changes after the intervention of the project. She frequently mentions and thanks ORDA in her articulations for its unreserved support.

 Farmer Sifrash started to be benefited from improved crops (wheat & maize) delivered by crop insurance (R4).   She also has got a 4 thousand birr loan and bought 3 ewes for rearing.  Farmer Sifrash claimed, “I owned no asset, rather I was looking for the aid of safety net just putting aside my working hands. However, by the help of the project, I’m well aware of how I can improve my life working on various income generation activities. After the intervention of the project, I hold a house (40 corrugated iron), made a profit of three thousand birr to return back the loan. I’m successful in rearing that my sheep are maximized from 3 to 6. Crop insurance offered me a washera tether for improved breeding.”

 W/ro Sifrash is eager to withdraw from safety net since the end of 2015. She wanted to strengthen income generating activities like tea, bread and a local beer “Tela”.  Besides this, she is now specialized in sheep rearing. Farmer Sifrash supported her first daughter for 4 years until she graduated at Wollo University.

 Generally speaking, activities of crop insurance (R4) is quite inspiring for farmers in changing their livelihoods.  The project should also target more beneficiaries in an integrated manner.  It is by now well realized that only through community approaches the large numbers of marginalized rural people can be "reached" effectively and put remarkable contribution in changing their lives.