PADRRIF Newsletter
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PADRRIF Newsletter Non-periodic newsletter published by Palestinian Agricultural Disaster Risk Reduction & Insurance Fund In This Issue • Forward from Dr. Nasser Al-Jaghoub • Report on Agricultural Damages • Meetings with several institutions • PADRRIF participates in a specialized training program • PADRRIF expands its agricultural insurance database • Practices of the Israeli occupation in Area C • Farmer “Shareef Khaled” resisting occupation NO. 0/ 2021 Agricultural Insurance in Palestine Between aspirations and challenges Written By: Dr. Nasser Al-Jaghoub Head of PADRRIF Investment in agricultural sector has long been the governments’ centre of interest in both developed and developing countries. This is due to strategic issues, foremost of which is the food security issue which is associated with national security. In addition, the agricultural sector is considered the sponge of poverty and unemployment because of its ability to absorb manpower and provide production inputs for other large productive sectors. Palestine’s agricultural sector is a major component of the national economy; mainly because of the important role it plays through its contribution to the gross domestic product (GDP), employment opportunities and national products exports. Moreover, it represents resilience, confrontation and clinging to Palestinian lands targeted for expropriation and settlement from Israel; which threatens agricultural development efforts. In addition to political risks, Palestine has been affected by the phenomenon of climate change; as natural and climatic hazards are a recurring cause of agricultural damage and losses and it has become a real burden on the Palestinian farmers for many years. Despite attempts by the Ministry of Agriculture and consecutive Palestinian governments to raise the necessary funds to alleviate the effects of these risks, the absence of a specialized national institution that addresses this national burden has distanced governmental interventions, reduced the possibilities of success and hindered speed of development. From here, the government established the Palestinian Agricultural Disaster Risk Reduction and Insurance Fund (PADRRIF) to be a pioneer institution in the field of agricultural risk management, through the employment of all interventions, tools and scientific methods available seeking to improve investment and finance environment and speed development in agricultural sector. Risks in Agricultural Sector Some studies estimated that the risks in agriculture are 20 times more than in other sectors, such as health insurance or vehicle insurance, through the product chain from manufacturing to marketing. The agricultural sector in Palestine is exposed to several risks, such as natural and climatic risks, and market forces risks such as supply and demand, and political risks arising from occupation and lack of control over classified lands c. And in view of the geographical location of Palestine in the Mediterranean basin and specifically in the south, it is more exposed to the risks of drought and Frost. These risks have negatively affected the agricultural sector in Palestine, which has led to: • Many farms and agricultural businesses were damaged and losses accumulated. • A decrease in the contribution of agriculture to the GDP. • A distortion of the sustainable development process. • Decline in investment in the agricultural sector and leaving work in it for the benefit of other sectors. • High burdens and costs of compensation on the government for the affected farmers. • Small farmers ’income has fluctuated and many of them lose their job opportunities. All this shows the farmers› need for an agricultural insurance system that protects them from the risks of losing production and returns them to the agricultural production cycle. Once again, agricultural insurance constitutes a safety net for farmers, and is considered an attractive tool for investment in the agricultural sector and also promotes sound agricultural practices to reduce risks. Importance of Agricultural Insurance The importance of agricultural insurance is strongly reflected in that it gives farmers a sense of safety and confidence, provides protection from production risks, encourages farmers to invest more in new technology, provides an encouraging climate for rural bank finance, state support for insurance is in compliance with the terms of the World Trade Organization, leads to improved performance and adoption of correct agricultural production conditions, as well as the government is exempt from indiscriminate compensation in the event of agricultural disasters. The role of PADRRIF in the face of risks and hazards Based on the strategic directions of PADRRIF for the years 2017-2022, 3 comprehensive programs were adopted (1) The Agricultural Risk Management Programme, (2) The Agribusiness Environment Development Programme, and (3) The Administrative and Financial Programme. The directorate general of agricultural insurance focuses on the first program which is based on a set of outputs: - Output 1: A comprehensive agricultural disaster risk management framework; articulating and harmonizing possible interventions before, during, and after the occurrence of agricultural disasters. - Output 2: Mandatory technical standards endorsed and applied by agricultural businesses and enterprises, raising their level of readiness and preparedness to encounter agricultural risks. - Output 3: An articulated and institutionalized agricultural compensation sector that contributes to the recovery from agricultural damages. - Output 4: A market for agricultural insurance and partnerships to mitigate agricultural risks. - Output 5: Monitoring, risk analysis and early warning systems. In the same context, the DG of agricultural insurance implemented several activities and projects in parallel with the general strategic guidelines of PADRRIF, making a number of achievements, foremost of which is creating the steering committee to monitor the implementation of agricultural insurance roadmap; this step was built on the results of the development of agricultural insurance in Palestine study. The committee was formed by one representative from each of the Ministry of Agriculture, General Union of the Palestinian Peasants and Agricultural Cooperatives, the Palestinian Capital Market Authority (PCMA), Agricultural Development Association (PARC), Palestinian Agricultural Credit Institution (PACI), and the Palestinian Insurance Federation (PIF). On another note, and in line with these efforts, the DG of agricultural Insurance made an assessment of the demand on agricultural insurance through conducting a preliminary survey on farmers’ financial and insurance needs in collaboration with PACI. The most important result was that 80 % of surveyed farmers confirmed their willingness to join the agricultural insurance program. 00972- 2961861/6 00972- 2961877 PADRRIF The Palestinian Agricultural Disaster Risk Reduction and Insurance Fund Agricultural damages for the first quarter of 2021. The Palestinian agricultural risk reduction and insurance fund has established a computerized software for the agricultural damages that affect the farmer, through developing a paper damage inventory form, converting it to soft copy survey and collecting data on agricultural damages within the computerized software, which serves the strategic goals of developing fast and accurate computerized systems in the field of measuring the value of agricultural losses and damages. In addition, establishing and managing suitable data bases to inventory and documenting agricultural damages. The agricultural damages are divided into two sections: - Data related to agricultural damages caused by natural risks - Data related to agricultural damages caused by practices of Israeli occupation For the first quarter of 2021 agricultural damages were recorded as follows: Firstly: data of agricultural damages • Plant Production The total value of damages for Plant production sector reached 217402.50 NIS, while Jenin and Tubas governorates were the most affected in the north of West Bank with a total estimated area of521 Dunoms and 166 Dunoms respectively. Moreover, Jericho and Jeftlik areas were the most affected areas in the middle of West Bank with a total damaged area of 110 Dunoms. While in the south of West Bank, Dura is considered as the most affected area, with a total damaged area of 240 Dunoms. The following graph explains damaged areas in West Bank: 45.5% olive 17.6%Cucumber 05.8%cauliflower 04.5% Tomato 04.3% zucchini 04.1% bean 03.9% barley wheat 03.3% barley wheat • Livestock production The total value of damages for the livestock production sector reached 1005155.62 NIS; where Beita, Ajjah and Zababdeh are considered the most affected areas in the north of West Bank, and Shioukh area as the most affected area in the south of the West Bank. The following graph explains damages in the livestock production sector: 88.7% broiler chicken 04.3% sheep 02.8% lamb 02.7% sheep 00.9% feed 00.6% Assaf sheeps 00.0% Non pregnant goats • Fisheries Damages of fisheries sector were limited to damage of 3000 sweet water fish seeds, with a percent of 50% from the affected farm in Samou’ area in the south of West Bank. • Farm facilities The total value of damages for farm facilities and equipment reached 5050629.75 NIS; with Arbouneh and Ajjah areas being the most affected in the north of West Bank, and Bani Naim and Yatta the most affected areas in the south of West Bank. The following graph