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Planning A Sustainable Future

Any seasoned farmer in South Africa will tell you that one of the most important factors to running a successful business within the agricultural sector is to protect your assets. The best way to do this is with an insurance partner you can trust, like Old Mutual.

The Importance of Agricultural Insurance

Agribusiness is farming in South Africa and like any other business it needs to be protected from the unpredictable nature of Mother Nature herself. This includes elements like crop protection, climate change predictions and insurance on your livestock and game. You can also cover the assets of your Agribusiness in the form of your machinery, irrigation systems and buildings.

Agricultural insurance protects crop farmers against common occurrences that can wipe out entire seasons of produce like hailstorms, flooding, drought, plant diseases and other natural disasters. This is essential to protecting the assets of those working in agribusiness, as well as the South African public who rely on their produce.

Agricultural Insurance Keeping Food Inflation Under Control

Because agriculture is usually such a profitable investment farmers are reliant on the promise of a large profit return within a small window of time. If they invest in the cultivating and nurturing of crops, only for them to be destroyed by forces outside of human control, they stand to lose a huge chunk or their entire yearly income.

If there is a disaster affecting many farms in an area the public can expect a spike in prices because the supply can no longer meet the demand. This was seen as a result of the drought in Cape Town where local produce needed to be sold for more money in a desperate attempt for farmers to break even.

With the help of agricultural insurance, farmers don’t need to charge as much for the little produce they could yield. This is due to the fact that insurance will assist them in paying off their loans in times of crop failure so that they are not left too deep in the red after a crop failure.

Farming in South Africa is supported by agricultural insurance and those in the agribusiness can take out loans to ensure a more fruitful harvest the next season. Those giving loans feel more comfortable doing so because the farmers they are working with are covered, so their loan will be repaid regardless of the success of the harvest.

For everything you may need (including comprehensive agricultural insurance) as an individual working in the agribusiness, visit our agricultural directory.

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Agribusiness | agriculture South Africa | farming South Africa