Bayer and Pula Foundation to Insure 10M Smallholder Farmers by 2030
- Fahad Bin Khalid
- January 30, 2025
- 12:02 pm
- 29
- Business
Bayer and Pula Foundation are teaming up to provide smallholder farmers insurance in low- and middle-income countries. Their goal is to insure 10 million farmers by 2030. This initiative will improve climate resilience and boost food security in regions affected by climate challenges.
Supporting Smallholder Farmers in Asia and Africa
Smallholder farmers are the backbone of food production in many low- and middle-income countries. They produce over half of the food consumed in these regions. However, these farmers face numerous challenges, including climate change, droughts, floods, and limited access to essential services like insurance. The partnership between Bayer and Pula Foundation aims to address these issues and ensure the long-term success of smallholder farming.
The countries involved in this project include Pakistan, Bangladesh, Malawi, Ghana, Nigeria, Kenya, and Mali. These regions are particularly vulnerable to climate-related disruptions, and the lack of adequate protection leaves farmers at risk of losing everything. By providing smallholder farmers insurance, Bayer and Pula Foundation will help them cope with the financial strain caused by unpredictable weather patterns.
Increasing Climate Resilience Through Insurance
The main objective of the collaboration is to improve climate resilience among smallholder farmers. Extreme weather events like floods and droughts threaten harvests and livelihoods. Insurance can help farmers recover from these setbacks by offering financial protection against crop loss. With insurance, farmers can invest in better farming practices and climate adaptation tools, making them more resilient to future climate impacts.
The Bayer Foundation’s grant, totaling 10 million euros, will unlock $127 million in insurance coverage for 10 million farmers by the end of 2030. This funding will provide farmers with affordable access to the insurance they need to protect their crops and livelihoods.
Building Partnerships for Long-Term Impact
Bayer’s commitment to sustainable farming solutions is reflected in its partnership with the Pula Foundation. The collaboration brings together private and public entities to strengthen the agricultural insurance market in Africa and Asia. By working together, Bayer and Pula Foundation aim to improve smallholder farmers’ access to climate finance and provide them with the necessary tools to thrive.
Rodrigo Santos, President of Bayer’s Crop Science Division, emphasized the company’s dedication to supporting farmers. “We aim to deliver ecosystem-based approaches that empower smallholder farmers and their communities to overcome challenges and thrive,” he said.
Global Food Security at Risk
In 2023, around 2.33 billion people worldwide faced food insecurity, according to the FAO. Smallholder farmers play a crucial role in fighting food insecurity, yet they are among the most vulnerable to climate-related disruptions. Without access to insurance, many farmers are unable to recover from losses caused by floods, droughts, and other climate-related events.
Bayer and Pula Foundation’s efforts aim to improve the resilience of smallholder farmers, ensuring they can continue to feed their communities and contribute to global food security. By providing insurance coverage and support, the partnership addresses a critical gap in the agricultural sector and helps build a more sustainable and secure future for farmers.
Looking Ahead: Expanding Support to More Farmers
Bayer has an ambitious goal of supporting 100 million smallholder farmers by 2030. This support will include access to agricultural products, services, and climate resilience tools that help farmers improve productivity and income. The partnership with Pula Foundation is a key step in achieving this goal.
In addition to insurance, Bayer’s Crop Science Division is committed to providing innovative, farmer-focused solutions that drive sustainable growth and regenerative agriculture. This initiative is an important part of Bayer’s global mission of “Health for All, Hunger for None.”
Conclusion
The smallholder farmers insurance initiative by Bayer and Pula Foundation is a significant step toward securing the future of farming in Asia and Africa. By providing insurance coverage and supporting climate resilience efforts, the partnership helps farmers protect their livelihoods and continue feeding their communities. The long-term impact of this initiative will contribute to greater food security and a more sustainable agricultural industry worldwide.
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