WFP supports parametric agriculture insurance pilot in Honduras

By Henry Gale

Jan 30 - (The Insurer) - The government of Honduras has launched a parametric agriculture insurance pilot with $800,000 of financial support from the World Food Programme.

The scheme will cover 1,880 corn and bean producers in the departments of Lempira, La Paz, Santa Bárbara, Ocotepeque, Comayagua, Valle and Olancho against drought and rainfall risks. It is supported by Aseguradora BanRural.

It aims to protect the country's food supply, improve the resilience of rural families and promote risk management. Honduras' ministry of agriculture and livestock said that it has the potential to be scaled up at a national level "thanks to the support of the private sector, international organisations and civil society".

"This micro-insurance represents a historic milestone towards the modernization of the agricultural sector in Honduras, ensuring that our producers have a safety net when climatic events threaten their livelihoods," said Laura Elena Suazo, Honduras' minister for agriculture and livestock.

Stephanie Hochstetter, WFP representative in Honduras, said, "This launch reaffirms the WFP's commitment to implementing the State Policy for the Agri-Food Sector (2023-2043), in the area of inclusive financing to strengthen access for small producers, promoting food security in their communities."