The Viability of a Crop Insurance Scheme; A Case Study - Guyana

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DOI: 10.21522/TIJMG.2015.05.02.Art004

Authors : Parmeshwar Budhu


Guyana is a developing tropical country on the Atlantic coast of South America and a member of the Caribbean Community (CARICOM). Guyana has a land mass of 214,970 sq. km and the current estimated population is 772,298 with approximately 90% living on the coastal land of the country. This is a narrow strip of land which constitutes only 10% of the total land mass, but provided 90% of its cultivation land. Guyana ‘s coastal plain is below sea level and its muddy and clay soil texture makes it ideal for rice cultivation. The cultivation and export of sugar, rice along with gold, bauxite, shrimp and timber contributes to the country approximately 60% of its Gross Domestic Product. Guyana has two major rainy seasons per year- May to August and November to January, which can result in overflow of rivers causing the agriculture sector to suffer losses mainly from flooding, especially flash floods.

This research aims to investigate the viability of a crop insurance scheme in Guyana. This is because the current system by the government to provide relief to farmers affected by crop failure for whatever reason is not sufficient to compensate them for full extent of the losses suffered. Current data obtained Windward Island Crop Insurance Limited suggest that there are crop insurance in other CARICOM countries providing significant assistance to farmers especially in the Windward Islands which are prone to hurricane of increasing magnitude.

Keywords: Crop Insurance, Government Aid & Windward Island Crop Insurance Limited.


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