The headline 'Progress on agriculture insurance scheme', in The Gleaner, December 10, 2008, captured my attention.

It is my sincere hope that when the study has been completed in February 2009, the ministry will, assuming that the scheme is proven feasible, speedily implement the contractor's recommendations.

Dr Michael Gudger, crop insurance specialist, in association with a local agronomist and insurance specialist, Carl McDowell, wrote a report "Design of a Jamaican Catastrophic Loss Insurance Programme for The Agricultural Industries, Low Income Housing and Critical Public Services" dated May 1989.

Funds for the study were provided by the United Nations Development Programme (UNDP). Mr McDowell was, at the time, an employee of a locally-owned firm of insurance brokers that I headed, which a few years earlier identified the need for insurance to protect the interests of farmers and had deployed human and financial resources to realise that goal.

As your article indicated, after being hit by four hurricanes or storms three years in succession and agriculture suffered another $1.6 billion of losses when Gustav hit in August, the World Bank was lobbied to assist farmers.

Unfortunately, it has taken the ministry nearly 20 years and billions of dollars of losses of production to recognise the necessity of planning for natural disasters, especially in the agricultural sector, before these events occur (ex ante) instead of afterwards (ex post). I pray and hope that something happens this time around.

Cedric E. Stephens

aegis@cwjamaica.com

Taken from the Financial Gleaner, Friday December 12, 2008.