Limpopo farmers who tripled their maize yields through Grain SA mentorship are now pioneering insurance uptake in an unprecedented move for small-scale agriculture.

By Maile Matsimela, Digital Editor at African Farming

On 22 October, smallholder farmers from the Elias Motsoaledi and Makhuduthamaga municipalities in the Sekhukhune District met in Talane near Monsterlus to take their first step in insuring their crops against natural disasters.

The farmers are under the mentorship programme of Grain SA, which has helped them produce maximum harvests on their farms. Speaking to African Farming, Jim Masemola from Sehlakwane in Groblersdal, who was representing the farmers, said they were meeting to learn more about insurance as farmers and to take the initiative to insure their crops against natural disasters.

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From Subsistence to Commercial Success

“All of us here were mentored by Grain SA to utilise our farming spaces to their maximum capacity… Most of us here are smallholder farmers on spaces from one hectare to five hectares… We were harvesting just a few bags of maize, but since the intervention from Grain SA, we are now harvesting six to eight tonnes per hectare,” said Masemola.

Masemola says insurance is a necessary step in ensuring consistency. “Today we gathered to take our first step in signing up for insurance so that in times of natural disasters we can have something to fall back on. Since most of us are buying inputs from our own pockets, if disaster happens, then it means most of us won’t be able to replant, so the insurance is here to help us with that.”

Debunking Insurance Myths

“Most of us thought that insurance in the sector was only for big commercial farms, but Santam sat us down and explained to us in the language we understand that we also qualify to be covered,” he said.

Masemola added that smallholder farmers are just as important, and the impact on the national output of maize harvest should never be underestimated, as it contributes to national food security and job creation. He further invited all stakeholders who can help them farm effectively and efficiently to join hands with them to ensure their farms continue to be productive and feed the nation.

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Weather Patterns and Financial Vulnerability

Macdonald Makoro, Regional Underwriter for Crop Insurance at Santam, said that in the face of increasingly unpredictable weather patterns and climate change, they are working to ensure that protection against agricultural risks isn’t just a privilege for large commercial farmers.

Speaking at the session with small-scale farmers, Makoro painted a stark picture of the financial vulnerability facing agricultural communities. “It only takes one bad season to wipe out everything and leave you in the red as far as your finances are concerned,” he emphasised, highlighting the precarious nature of farming without proper risk mitigation.

“As Santam, we believe that even small-scale farmers face the same climatic challenges, and we explain to smallholder farmers that they shouldn’t look at crop insurance as a financial product but as an essential component of sustainable farming practices.

“If you’re looking at sustainable agriculture, sustainable farming, you can’t do away with crop insurance. It’s a need,” he stated, underlining the integral role that risk protection plays in long-term agricultural viability.

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Parametric Insurance: A Game-changer

The parametric weather insurance product that Santam is promoting represents a shift towards more accessible and responsive coverage. Unlike traditional crop insurance that requires extensive damage assessments, parametric insurance triggers payouts based on predetermined weather parameters, making it particularly suitable for small-scale farmers who may lack the resources for complex claims processes.

One of the most significant challenges Makoro encounters in his work is dispelling myths about insurance accessibility and comprehension in rural communities. “There is this misconception that rural people don’t understand the concept of insurance, but once you explain it in a language they understand, they grasp it,” he explained. These challenging assumptions have long excluded rural populations from insurance markets.

Clear Communication Key to Success

Santam’s approach emphasises the importance of clear, culturally appropriate communication. “Insurance is not just for educated people; there are tailored products to meet the needs of the poor and rural communities,” said Makoro.

He said that what he realised with smallholder farmers on the day is that once people understand the language or the concept, they grasp it, whether it’s insurance or rocket science.

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Grain SA’s Training Revolution

Jerry Mthombothi from the Grain SA office in Mbombela, who is responsible for training the smallholder farmers, said they got to know about the farmers in Groblersdal through word of mouth from one of the farmers who comes from the Groblersdal area but is based in Mbombela. “They first attended our training, and upon realising that it was making a big impact on their harvest, they asked us to come and train the others in this area as well.”

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Mthombothi said they have already established 12 study groups in Limpopo.

He said once they have trained the farmers and are confident that they can implement correct production practices, they then organise them to also buy inputs such as fertilisers, seeds and chemicals in bulk as a group. This, he said, helps them to get these inputs at discounted prices as opposed to buying individually.

Mthombothi emphasised that the training has changed the lives of the farmers for the better. “These farmers were averaging two tonnes per hectare when we started with them, but now I can confidently tell you that they are getting from six to eight tonnes per hectare. Now this means they are able to send to the silos and contribute to the overall national output and get paid for their hard work,” he said.