Bayer, Pula foundation partner to insure 10M smallholder farmers by 2030

AFRICA/ASIA – Bayer Foundation and Pula Foundation announced their ambitious partnership at the World Economic Forum to insure 10 million smallholder farmers in Sub-Saharan Africa and South Asia by 2030.

This effort aims to boost climate resilience and food security for smallholder farmers.

This collaboration aims to protect farmers from the devastating effects of droughts and floods, which threaten their harvests and livelihoods.

By fostering private-public partnerships, the initiative also seeks to shape the agricultural insurance market in Africa and Asia.

 “Smallholder farmers are already affected heavily by the impacts of climate change, and this will get worse going forward. It is crucial that we enable them to feed their communities and contribute to global food security,” said Matthias Berninger, Executive Vice President Public Affairs, Sustainability, and Safety at Bayer and Member of the Board of Trustees at Bayer Foundation.

The Pula Foundation has developed scalable, data-driven agricultural insurance solutions that mitigate the financial risks associated with extreme weather events.

By compensating farmers for yield losses, these insurance products enable farmers to recover and reinvest, creating resilience against future uncertainties.

Financial backing for long-term resilience

By 2030, Bayer Foundation plans to provide €10 million in insurance premium support, backed by a donation from Bayer’s Crop Science Division. This funding could potentially provide insurance coverage worth USD 127 million to farmers in countries like Kenya, Nigeria, Bangladesh, and Pakistan.

The initiative will target underserved communities and promote sustainable farming practices, with Bayer Foundation’s Social Innovation Ecosystem Fund playing a key role in its implementation.

“Our Crop Science division is committed to delivering farmer-focused solutions that drive sustainable growth and regenerative agriculture. By working with partners like Pula Foundation, we can provide farmers with the tools they need to overcome challenges and thrive,” said Rodrigo Santos, President of Bayer’s Crop Science Division.

The partnership builds on previous successes. In 2021, Bayer and Pula Foundation, in collaboration with the Zimbabwean Government, developed an agricultural insurance solution under the Zimbabwean Conservation Agriculture Program.

The program initially insured 31,000 farmers against drought risks in its first year, later scaling up to cover over 1 million farmers.

“Climate resilience is not just about recovery but also about dignity and empowerment. We believe insurance enables smallholder farmers to prepare themselves for an increasingly volatile climate rather than waiting for handouts,” said Rose Goslinga, Director of Pula Foundation.

Broader impacts on food security

Smallholder farmers produce over half the food consumed in low- and middle-income countries but face significant challenges, including limited access to climate adaptation tools, agricultural inputs, and credit services.

The Food and Agriculture Organization (FAO) estimates that 2.33 billion people faced moderate or severe food insecurity in 2023, highlighting the urgency of these interventions.

Bayer has committed to supporting 100 million smallholder farmers in low- and middle-income countries by 2030 through improved access to agricultural products, services, and resilient market models.

 

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