Ghana has received a $2.8 million crop insurance premium, part of which will be distributed to smallholder farmers in northern and southern Ghana affected by the 2024 dry spells.

A portion of the fund will also be used to cover premiums for flood-related damages in Kumasi, Accra, and Takoradi.

A highly placed source at the Ministry of Finance informed the Ghana News Agency on Tuesday that the Ministry was currently finalising internal processes to begin payments to affected farmers soon.

The government last year purchased a $1 million crop insurance premium, paid to the African Risk Capacity (ARC), to safeguard farmers whose crops were impacted by the dry spell.

The initiative is being funded by the Global Shield Solution Platform (GSSP), an international non-profit organization focused on increasing protection for vulnerable populations.

Last year, the government announced a GH¢1,000 assistance to each farmer identified as especially vulnerable to the agricultural challenges brought on by current climate conditions.

The support was intended to help farmers purchase subsidised agricultural inputs, particularly fertilisers, which are vital for sustaining their farms.

According to the Ministry of Food and Agriculture, Ghana faced a dry spell during the last farming season that affected 1.8 million hectares of crops and 980,000 farmers.

The losses were estimated at GH¢22.2 billion, with the affected regions contributing about 62 percent of the country’s annual grain supply.

The country experienced a shortage of cereals this season due to dry spells in the northern parts of Ghana, leading to the loss of livelihoods for many farmers.

The dry spell has caused significant financial losses, with an estimated investment loss of GH¢3.5 billion and a revenue loss of GH¢10.4 billion.

The Global Shield Solution Platform is an international non-profit organization focused on providing better pre-arranged financial support for disaster-affected regions.

The African Risk Capacity, established in 2012 at the request of African Union Heads of State, was created to address the increasing frequency and severity of natural disasters and to provide a reliable and consistent means of financing disaster-related costs.

The institution works with African nations to plan, prepare for, and respond to natural disasters.

Source - https://www.ghanabusinessnews.com