Government-Backed Insurance Scheme Targets Small-Scale Farmers

What the report says

Uganda is promoting a government-backed agricultural insurance scheme aimed especially at small-scale farmers, according to Nile Post. The programme is designed to cushion farmers against losses from drought, floods, hailstorms, crop diseases and other weather-related or production risks that can wipe out harvests and disrupt household incomes.

Under the Uganda Agriculture Insurance Scheme, the government reportedly pays 50% of insurance premiums for eligible farmers, while those in drought-prone areas can receive subsidies of up to 80%. Minister of State for the Luweero Triangle Alice Kaboyo said the goal is to make insurance more affordable and help farmers recover their investments after poor seasons. She also linked the initiative to wider environmental concerns, urging tree planting and conservation to help reduce drought impacts.

The report says farmers in Luweero District have begun organizing through Luweero Farmers and Housing Cooperative Limited, which has more than 5,000 members, to access the scheme. The cooperative’s secretary, Eddie Mugerwa, said the cover could help farmers avoid losing everything after crop failure and continue farming after setbacks.

More than 10 insurance companies, including Jubilee Insurance and Lion Insurance, are expected to take part in implementing the programme. Nile Post also reported that claims are expected to be settled within six weeks of submission, and that the broader aim is to strengthen resilience to climate shocks and reduce the risk of food insecurity. In general, agricultural insurance is often used in other countries as a risk-management tool for farmers exposed to volatile weather, though details vary by programme.