Bayer Foundation and Pula Foundation announced a partnership to insure 10 million smallholder farmers by 2030. The collaboration will focus on farmers in Sub-Saharan Africa and South Asia, providing protection against climate risks.
The partnership was revealed at the World Economic Forum. It will focus on helping farmers adapt to challenges caused by droughts and floods.
Bayer Foundation has pledged €10 million to support insurance premiums. This will unlock potential coverage worth $127 million for farmers in Bangladesh, Pakistan, Malawi, Ghana, Nigeria, Kenya, and Mali.
Protecting Farmers from Climate Risks
The Pula Foundation offers data-driven agricultural insurance solutions. These tools help farmers recover from losses caused by extreme weather events. The insurance protects their investments and helps them rebuild.
Matthias Berninger, Bayer’s Executive Vice President Public Affairs, Sustainability, and Safety, said climate change heavily affects smallholder farmers and will worsen. “It is crucial that we enable them to feed their communities and contribute to global food security.”
Bayer is committed to supporting smallholder farmers through partnerships and innovative solutions. Rodrigo Santos, President of Bayer’s Crop Science Division, said, “By unlocking climate finance and collaborating with partners like the Pula Foundation, we aim to deliver ecosystem-based approaches that empower smallholder farmers and their communities to overcome challenges and thrive.”
Proven Success in Scaling Insurance
In 2021, Bayer and Pula partnered with the Zimbabwean Government on an insurance pilot program. It insured 31,000 farmers against climate risks in the first year. This initiative later expanded to cover over 1 million farmers.
Rose Goslinga, Director of Pula Foundation, emphasized the importance of insurance in building resilience. “Climate resilience is not just about recovery but also about dignity and empowerment,” she said. “We believe that insurance enables smallholder farmers to prepare themselves for an increasingly volatile climate, rather than waiting for handouts.”
Smallholder farmers produce over half the food in low- and middle-income countries, according to the FAO. However, they face many challenges, including climate change, lack of tools, and inadequate financial services.
Bayer aims to support 100 million smallholder farmers globally by 2030. The company is committed to increasing access to agricultural products, services, and climate resilience tools.