BRIDGETOWN, Barbados (CMC) – The Barbados government is moving towards establishing an agricultural insurance framework for the country and is encouraging farmers and other stakeholders to participate in a survey on the issue.

The Ministry of Agriculture, Food and Nutritional Security said the survey is directed at farmers and commercial agricultural producers and that the feedback gathered will help ensure that the experiences, needs and concerns of the agricultural community are considered as the policy framework is developed.

It said all information collected will be kept strictly confidential and that the agricultural insurance model being proposed is parametric insurance, which differs from traditional indemnity insurance.

“Traditional insurance generally requires losses to be assessed and verified before compensation is paid, a process which can sometimes take months. Parametric insurance, however, is triggered when predetermined conditions are met, such as specified rainfall levels or wind speeds associated with a weather event.”

The ministry said that once the agreed trigger is reached, an eligible policyholder can receive a payout without undergoing the traditional loss assessment and verification process.

“This can significantly reduce the time between a qualifying event and payment, helping farmers access financial support and restart operations more quickly,” it said urging “all farmers and persons engaged in commercial farming activities in Barbados to participate in the survey and have their voices included in this important process”.