INSURING TOBACCO CROP BY MT DARWIN DISTRICT SMALLHOLDER
FARMERS: A MYTH OR REALITY

INSURING TOBACCO CROP BY MT DARWIN DISTRICT SMALLHOLDER
FARMERS: A MYTH OR REALITY

DELIWE TEMBACHAKO

GILLIET CHIGUNWE

In recent years, tobacco farming has taken an increase among smallholder farmers in
Zimbabwe. High and immediate payments made by buyers of tobacco have caused this shift
to tobacco farming especially in Mt Darwin district of Zimbabwe. Hence even after the
Zimbabwe land acquisition and distribution around the year 2000, more small-holder farmers
both in the newly resettled farmland and communal areas have taken up tobacco farming as a
lucrative cash crop. Previously it was a preserve of commercial farmers. Of interest to note is
that Commercial farmers insured the crop to guard against natural hazards and risks. In recent
years, climatic risk has grown considerably in Zimbabwe especially in the Dande valley and
Mt Darwin district has not been spared. Consequently, the insurance, reinsurance, and
financial markets in Zimbabwe have been noted to contribute to hedging against more natural
hazards. Whilst such insurance facilities are there, some farmers who have lost crops against
natural hazards in Mt Darwin were noted not to have insured their crops. The study sought to
answer the following questions; Are smallholder farmers in Mt Darwin aware of the
importance of insuring tobacco? What views do these farmers have towards tobacco
insurance? What factors hinder some farmers from adopting tobacco insurance? Descriptive
survey design was used for this research. Convenient sampling was used to select 5 wards out
of 34 wards and random sampling of 50 farmers was made. Raw data gathered from
questionnaires was analysed by using descriptive techniques. Findings indicated that farmers
are not quite aware of the risks in tobacco production and they view insuring the crop as not
necessary. They are not conversant with the issue of crop insurance thus lack of much
experience in tobacco production as well as minimized loss of the crop to natural hazards
were significant factors thwarting farmers from insuring tobacco

AARJMD VOLUME 2 ISSUE 2 (JULY 2015) ISSN : 2319 - 2801
Asian Academic Research Journal of Multidisciplinary

2015