Finance Minister Dr Mohammed Amin Adam has announced that the government secured a $1 million insurance policy to protect smallholder farmers in the northern region against future droughts.
According to him, this policy will provide a $5 million payout if a drought occurs.
“The government proactively purchased an insurance policy to guard against future droughts in the northern region.We paid a premium of one million dollars, ensuring a five million dollar payout if a drought hits, covering smallholder farmers in the region,” he said.
Further, the minister for food and Agriculture, Bryan Acheampong then elaborated on the government’s request to withdraw GHS 500 million from the contingency fund.
He explain that these funds, which are part of the GHS 8.3 billion, will go toward seeds, fertilizers, feed grants, cash transfers, and the import of rice, maize, and poultry feed.
“We committed GHS 500 million from the contingency fund, and we’ll distribute these resources across key areas.Thus, distribution will not be equal and funds allocation will be based on the agreed budget and available resources,” Acheampong said.
Moreover, he added that the government is intensifying efforts to avert an impending food insecurity crisis caused by the ongoing drought in the Northern and Middle Belts, mobilising funds, temporarily banning grain exports, and prioritising grain imports.
