Braving an uncertain world with agricultural insurance
Farming can be a risky business. But with agricultural insurance, small-scale farmers can rebuild their lives and livelihoods when shocks occur.
Although two thirds of Liberians are involved in agriculture, much of their food is still imported from abroad. Two decades after a devastating civil war, Liberia has progressed considerably, but remains heavily dependent on international assistance. Rural people are especially vulnerable to shocks caused by factors outside their control, such as the Ebola epidemic.
IFAD is working closely with the Government of Liberia, rural Liberians and international partners to transform the sector that lies at the heart of economic transformation: agriculture.
STAR-P is central to this collaboration. This programme is co-financed by IFAD and the World Bank through US$51.71 million in grants and highly concessional loans, along with in-cash and in-kind contributions by project participants and the private sector. STAR-P works with rural producers to introduce modern business and agricultural practices, create connections to markets and develop vibrant agribusinesses that transform the agricultural landscape.
Through greater agricultural production and prosperity, small-scale farmers and rural entrepreneurs can build the incomes and food security they need to withstand economic shocks.
For 35-year-old Hawa in the Lofa county of northern Liberia, this collaboration has been life-changing. “I felt lost and alone before the STAR-P project,” she says. A visual disability forced her to drop out of school and she struggled to earn a living by selling drinking water at a local market.
This changed when Hawa became one of 55 visually impaired people who united to improve their farming and marketing practices through the Lofa United Blind Association. The association members adopted improved agricultural technology with support from STAR-P, including training, inputs and quality seedlings to grow rice.
As a result, these members tripled the area they cultivate. They now produce enough to feed their families with a surplus to sell in the market. Hawa earned enough to reinvest her funds in a small shop, which gave her an added income stream.
Thanks to her facility with numbers, Hawa is now the chair and financial secretary of the farmers’ association. She has not only managed to send her three children to school, but also earns enough that she has returned to university herself. “I want to be a big accountant in the world,” she says.
While Hawa is just starting her entrepreneurial journey, 29-year-old Mariam has a business that received an invaluable leg up from STAR-P. Back in 2021, she sold fruit salad and hand-squeezed juice to commuters from a small kiosk in Monrovia, the Liberian capital.
Mariam saw how expensive healthy eating was for many Liberians and dreamt of reaching more people. She finally had the chance to pursue her ambitions when, while browsing the internet, she learned about a grant competition administered by STAR-P to revitalize businesses in agricultural value chains during the COVID-19 pandemic. She applied and was awarded funds to purchase a blender and juicer.
“Previously, I had to squeeze juices manually, which was time-consuming and inefficient,” she says. “Buying this equipment sped up my work and improved my customer service.”
Now able to serve more customers, Mariam’s business grew. She moved her stall to a new location near a prestigious hotel, where she marketed her healthy juice made from locally sourced ingredients. In 2023, Mariam received another grant from STAR-P that enabled her to expand to five locations with a team of 14 staff members, most of them women.
Mariam’s business has not only brought prosperity to her and her team. It has also created a reliable market for 20 farmer groups in three counties, from which she sources pineapples, cucumbers and watermelons. She’s now looking to expand further and market her juices to students in rural counties. By investing in Mariam’s vision, STAR-P has strengthened an entire value chain.
Mariam and Hawa are just two of over 40,000 small-scale farmers and rural entrepreneurs who have benefited directly from STAR-P, which built their capacity through agricultural assets and services, post-harvest processing facilities and improved agricultural technology. By growing their agribusinesses, these producers are not only increasing their own incomes and building resilience, but also ensuring that all Liberians have access to locally produced and nutritious food.