African Farmers mainly smallholder farmers are highly vulnerable to inherent risks and uncertainties, ranging from major weather-related risks such as drought, floods , windstorms and hail to difficulties acquiring farm inputs. They also face challenges at post-harvest level, including uncertain access to markets and high price variability.
Smallholder farmers have limited or no means to manage these risks which leads them to rely on traditional risk minimisation strategies such as diversification of farm activities and risk coping mechanisms and quite often, these strategies do not optimise productivity and provide limited protection against severe shocks.
FARMAF objective is to enhance access to and promote the development and use of effective risk management tools to impact positively on the food security and livelihoods of smallholder farmers.
It is expected that this approach will help strengthen smallholder farmers’ capacity to manage sudden downward shocks, improve access to credit, invest in yield-enhancing technology, to act collectively and improve their marketing of agricultural produce.
The risk management tools currently being developed and promoted under FARMAF in the three focus countries namely Burkina Faso, Tanzania and Zambia include:
- Crop insurance schemes
- Innovative marketing systems
- Market information Systems
- Collective action
- Policy advocacy