Agriculture Sub-sector Committee
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Transcript Agriculture Sub-sector Committee
PARTNERSHIP ARRANGEMENT FOR
ENHANCING AGRICULTURE RISK
MANAGEMENT AND PRAEDIAL
LARCENCY AGENDAS IN THE
REGION.
DR. VINCENT LITTLE
COORDINATOR,
IICA’s CARIBBEAN TECHNICAL AGENDA
TABLE OF CONTENT
Background
CARM Strategy
Agricultural Insurance Agenda
Praedial Larceny Agenda
BACKGROUND
Caribbean Region is comprised mainly of:
Small Island Developing States (SIDS) and
Low Lying Coastal States (LLCS)
Second most prone region in world to natural disaster
Region experiences regular annual losses due to
natural events in the order of US $3.0 billion.
DAMAGE DONE TO THE
AGRICULTURAL SECTOR
COUNTRY
DISASTER
ESTIMATED VALUE
DOMINICA
Luis and Marilyn (1995)
US $ 12 million
GRENADA
Ivan (2004)
US $ 36.6 million
GUYANA
Floods (2004/2005)
US $ 54.5 million
Floods (2005/2006)
US $ 22.5 million
JAMAICA
Gilbert (1988)
J $ 1.66 billion
ST. KITTS/NEVIS
Luis (1995)
US $ 15 million
ST. LUCIA
Allen (1980)
US $ 16.9 million
Dean (2007)
US $ 10 million
MAJOR HURRICANES IN THE
CARIBBEAN BY DECADE, 1970-2008
CATEGORIES 1970OF
1979
HURRICANE
CATEGORY 3
CATEGORY 4
CATEGORY 5
TOTAL
19801989
19901999
20002008
9
3
3
7
7
3
11
12
2
10
12
7
15
17
25
29
INCREASED ECONOMIC COSTS TO
THE SECTOR DUE TO:
Increased capital assets accumulation within the sector
Strengthened inter-sectoral linkages
Increased persistent poverty
Continued demographic growth and shifts
Migration towards coasts and river-beds of mega-cities
Increased probability of occurrence of severe weather
events
THE JAGDEO INITIATIVE
In 2003, President Jagdeo asked IICA and FAO to
assist in the development of a framework for a
regional agricultural repositioning strategy.
25th CHG (July/04) – Heads endorsed the
Framework Proposal, which contained the Jagdeo
Initiative’s vision, scope, focus and process.
The Initiative is the main vehicle for the
implementation of the CARICOM CAP, with a
focus on addressing 9 Key Binding Constraints
to the development of agriculture.
NINE KEY BINDING CONSTRAINTS OF
JAGDEO INITIATIVE
1
LIMITED FINANCE AND INADEQUATE NEW
INVESTMENTS
BARBADOS/CDB
2
OUTDATED,INEFFICIENT AGRICULTURE
HEALTH AND FOOD SAFETY SYSTEMS
TRINIDAD AND
TOBAGO/CARICOM
3
INADEQUATE RESEARCH AND DEVELOPMENT
ST. LUCIA/CARDI
4
FRAGMENTED AND DISORGANIZED PRIVATE
SECTOR
ST. VINCENT AND THE
GRENADINES/CABA
5
INEFFICIENT LAND AND WATER DISTRIBUTION GUYANA/FAO
AND MANAGEMENT SYSTEMS
6
DEFICIENT AND UNCOORDINATED RISK
MANAGEMENT MEASURES, INCLUDING
PRAEDIAL LARCENY
ANTIGUA AND
BARBUDA/FAO
7
INADEQUTE TRANSPORT
ST. KITTS AND
NEVIS/CARICOM
8
WEAK MARKETS AND MARKET DEVELOPMENT
AND LINKAGES
JAMAICA/CABA
ESTABLISHMENT OF TMACs
ESTABLISHMENT OF A TECHNICAL MANAGEMENT
ADVISORY COMMITTEE (TMAC) FOR EACH KEY BINDING
CONSTRAINT (KBC) CHAIRED BY THE MINISTER OR
NOMINEE.
LEAD AGENCY RESPONSIBILITY FOR –
ENSURING THE TECHNICAL AND REGIONAL
PERSPECTIVES AND SYNERGIES
COORDINATING THE DEVELOPMENT AND
IMPLEMENTATION OF ANNUAL WORK PROGRAMME
CDEMA GOVERNANCE STRUCTURE
Harmonization Council (CHC)
Sector committees (5)
Agriculture Sub-sector Committee (ASSC)
ASSC/TMAC COMMITTEE
Amalgamation of the:
TMAC of the Jagdeo Initiative and
CDEMA ASSC Committee
THE COMMITTEE
Minister of Agriculture, Lands, Housing and Environment of Antigua & Barbuda - Chair
United Nations Food & Agriculture Organization (FAO) – Lead Agency
Inter- American Institute for Cooperation on Agriculture (IICA) – Technical Support
Agency
Caribbean Disaster Emergency Management Agency (CDEMA)
United Nations Economic Commission for Latin America and the Caribbean (UNECLAC)
Caribbean Agriculture Research and Development Institute (CARDI) – Technical
Support Agency
CARICOM Secretariat
Caribbean Community Climate Change Centre (CCCCC)
Caribbean Institute of Meteorology and Hydrology (CIMH)
University of the West Indies Centre for Resource Management and Environmental
Studies (CERMES)
Caribbean Regional Fisheries Mechanism (CRFM)
Caribbean Farmers Network (CaFAN)
Some form of representation from the Insurance Sector
Caribbean Food and Nutrition Institute (CFNI)
Organization of Eastern Caribbean States (OECS)
WORK PROGRAMME OF THE
ASSC/TMAC
Three- year Work Programme (2010-2012)
D-Group
Agricultural Insurance Symposium – June 2010
Agricultural Risk Management Framework Developed
Agricultural Insurance Plan of Action Developed.
Praedial Larceny Agenda Evolving
COMPREHENSIVE AGRICULTURAL
RISK MANAGEMENT (CARM)
STRATEGY FOR THE CARIBBEAN
GOAL
Present a systematic and logical roadmap for
the implementation of actions aimed at
addressing agricultural risks at the regional,
national and community level through
effective and efficient programmes of
mitigation, , management, and coordinated
response to natural, technological and manmade hazards, and the effects of climate
change on the sector.
OBJECTIVES
To enhance the institutional framework and establish an effective
mechanism and programme for agricultural risk management (ARM).
To enhance the preparedness, response and mitigation capacity and
mechanism for risk management in the agriculture sector in Member
States as well as at the Regional level
To provide emergency assistance in the management of invasive
species.
To support the development and promotion of national agendas for
addressing praedial larceny in the region, including the legislative
framework and related information and infrastructure.
ELEMENTS OF THE STRATEGY
Agri-business segmentation
Risk assessment
Institutional capacity building
Risk financing.
AGRI-BUSINESS SEGMENTATION
Social vs. Commercial insurance
Traditional farming sector
Commercial farming sector
Emerging farming sector.
WHY SEGMENTATION
TO DETERMINE ISSUES SUCH AS:
Capacity to implement best practices
Degree of risk awareness
Affordability
Risk management culture.
AGRICULTURAL RISK ASSESSMENT
Risk identification
Risk quantification
Risk prioritization
Probabilistic agricultural risk model
RISK, VULNERABILITY AND
CAPACITY ASSESSMENTS
Hazard analysis
Exposure analysis to value assets at risk
Vulnerability analysis
Damage and Loss analyses
Three complimentary activities:
Management and dissemination of knowledge on risk.
Effective early warning systems, including for famine,
drought, hurricanes and floods.
Communication and awareness promotion about hazard
threats
INSTITUTIONAL CAPACITY
BUILDING
COMPONENTS OF CAPACITY
BUILDING
Data management
Regulatory/supervisory framework
Information and Education
Technical expertise
Programme administration and management.
DATA MANAGEMENT
Meteorological data archiving
Weather and climate forecasting and monitoring
systems
Packaging and transfer of data to end users for
decision making.
REGULATORY/SUPERVISORY
Establishing a stable legal framework for disaster risk
management
Strengthen national and regional disaster
management agencies and establishment of stronger
co-ordination mechanisms between relevant line
ministries
Linking community-level experience with nationallevel policy making
Strengthen building codes and land-use
INFORMATION AND EDUCATION
Establishing/strengthening of the information infrastructure for
decision making, knowledge sharing and management of agricultural
risk in the region
Standardization of existing educational and training materials for
agricultural risk management
Establishing strategy and curriculum for building a culture of safety in
the region
Developing agricultural risk management tool kit for farmers in the
region
Developing and implementing communication/public awareness
programmes
TECHNICAL EXPERTISE
Promoting technical and physical risk mitigation
Developing agricultural risk management protocols and resource
facility
Improving national and local capacities for disaster prevention and
mitigation, preparedness and response
Enhancing national and regional capacities for the conduct of disaster
damage assessment and the design of rehabilitation/reconstruction
plans
Providing emergency assistance in the management of invasive species
Supporting the development and promotion of national agendas for
addressing praedial larceny
RISK FINANCING STRATEGY
OBJECTIVES
Identify the players and their potential contribution
(value added) to risk financing
Determine the risk bearing capacity of the
various players
Identify the financial instruments that are most
suitable to transfer the risks.
RISK INSTRUMENTS
Agricultural insurance and reinsurance
Catastrophic bonds (‘Cat bonds”)
Weather derivatives
Future markets
Mutual funds
Personal savings
Natural disaster funds and other public instruments,
such as safety nets for the most vulnerable (micro-credit
and cash transfers)
Public activities in agricultural mitigation and
adaptation.
AGRICULTURAL INSURANCE
REGIME
AGRICULTURAL INSURANCE
SCHEMES UNDERDEVELOPED
Asymmetric information
High administrative costs
Mismatch between farmers preferences and capacity to
pay
Distorted Government incentives and lack of political
will
Reluctance of reinsurers to enter the market
RENEWED INTEREST IN INSURANCE
Increasing frequency and cost of natural disasters
Strong links between shocks and poverty
Need to increase agricultural competitiveness in light
of ongoing trade integration efforts and globalization
Promising advances in sensing technologies,
computing power, telecommunications, and
probabilistic risk modelling.
DESIRABLE CHARACTERISTICS:
Cost effective (accessible to the producers)
Easy to administer and operate
Not subject to moral hazard: takes into account incentives and
strategic responses from producers
Cover a wide range of risks
Benefit payments are fast, effective and transparent
Financially sustainable (access to international financial
markets).
AGRICULTURAL INSURANCE
PROGRAMME SUSTAINABILITY
COUNTRY
PERIOD
ANALYZED
COST vs.
PREMIUM RATIO
(A+I/P)
BRAZIL
1975/1981
4.57
COSTA RICA
1970/1989
2.80
JAPAN
1985/1989
4.56
MEXICO
1980/1989
3.65
PHILIPPINES
1981/1989
5.57
1999
3.68
1990/2009
0.83
USA
SPAIN
PLAN OF ACTION FOR INSURANCE
Assessing the general demand for agricultural
insurance by identifying objectives – social vs.
commercial and target audience.
Identifying those agricultural crops and producer
composition, infrastructure and perils for which cost
effective insurance is attainable
Conducting risk assessments, vulnerability
assessments and risk prioritization
PLAN OF ACTION FOR INSURANCE
Assessing the available products and supply of
insurance/reinsurance to support initiatives
Assessing the feasibility of up scaling existing
initiatives such as WINCROP to cover multi-perils and
crops
Assessing the role of Government in the provision of
administrative oversight, information systems, legal
and regulatory framework, etc.
PLAN OF ACTION FOR INSURANCE
Determining effective channels of distribution
Designing and implementing a regional catastrophic
risk facility for the sector (CCRIF or not)
Developing pilot schemes
Developing information and education programmes
PRAEDIAL LARCENY AGENDA
PRAEDIAL LARCENY CONSULTANCY
THE BEAST
What we no longer see are desperate individuals trying to
satisfy themselves with a single act.
What we are now seeing are expert ‘farmers and butchers’
who drive in vehicles and are well equipped to facilitate
their nefarious activities.
Those engaging in Praedial Larceny are now highly
sophisticated and that their actions are causing despair for
the victims.
Those victims of Praedial Larceny are men and women who
have invested their savings, who have mortgaged their
properties
REGIONAL COST OF PRAEDIAL
LARCENY
Loss of crops and livestock
In Jamaica - the annual loss to Praedial Larceny is estimated
at J $ 5.0 billion (US $ 60 million).
Caribbean – annual loss is estimated at US $385 million
Reduced levels of farmers profitability
Loss of investments – disincentive for investments
Threat to human health and safety
Loss of good genetic material
ROLE OF PUBLIC – PRIVATE SECTOR
Agriculture must take a holistic approach to address
Praedial Larceny
Must involve all stakeholders – government, judiciary
and producers along the entire value chain
STRATEGY MUST INVOLVE:
Public Awareness and Public Education
Re –education of the police and Judiciary
Strengthening of Existing Laws and Legislation
The establishment of traceability system
Appointment of Chief Praedial Larceny Officer
RE-EDUCATION OF POLICE AND
JUDICIARY
Resident magistrates and police must not treat thieves too
leniently
Praedial Larceny must be seen as a crime. The real issue is crime
Assets earned through Praedial Larceny must be included in the
Proceeds of Crime Act and treated the same way that assets from
drugs and other organized crimes are treated.
Convicted praedial thieves must be bound to compensate their
victims
Promotion of call in services
STRENGTHENING OF EXISTING
LAWS AND LEGISLATION
Stiffer penalties to include:
Increasing fines and sentences.
Instituting a three strike system
Reviewing laws and penalties for individuals who accept
stolen goods
Implementing a mechanism for compensating farmers
from fines collected.
ESTABLISHMENT OF TRACEABILITY
SYSTEM
Record keeping by farmers
Registration of producers and vendors.
Introduction of receipt books within the context of a Sale
of Produce Act
Re-introduction or introduction of slaughter Register
Certification of Abattoirs
Mapping of Hot Spots
APPOINTMENT OF CHIEF PRAEDIAL
LARCENY OFFICER
Establishes a Focal Point
Gives impetus to the implementation of an aggressive
programme
THANK YOU