John Myers Jr., Farmers Weekly CoordinatorA new disaster fund is being established to assist with the speedy recovery of the island's banana industry from the effects of natural disasters.
Agriculture and Lands Minister, Roger Clarke, said 12 per cent of a $122 million hurricane rehabilitation programme funded by the European Union for the banana industry will be used to start a catastrophe fund.
Mr. Clarke, who made the announcement on Tuesday at the launch of the programme, said the catastrophe fund, which amounts to about $24 million, would be used to augment the existing insurance fund for industry.
"As the name implies, the proceeds from this fund will be used in the future to assist farmers in the industry who suffer losses as a result of natural disasters," he said the function held at the ministry's office at Hope Gardens in St. Andrew.
"All banana growers receiving inputs under the hurricane rehabilitation programme are expected to contribute 20 per cent of the total cost of the inputs received," Mr. Clarke explained.
Donovan Stanberry, permanent secretary in the Ministry of Agriculture and Lands, noted that the special fund was being created due to the high susceptibility of the banana industry to natural disasters. He said the Banana Industry Board had in place an insurance scheme for farmers, but it was not adequate to cover the cost damage from natural disasters.
The banana industry, which is the second largest export crop, has suffered significantly from the effects of hurricanes in recent years. Hurricane Ivan in 2004 totally destroyed the industry, disrupting export commitments to the EU for several months.
This sparked calls from stakeholders in the industry for increased insurance coverage, as the current insurance scheme pays out only $10,000 to $15,000 per acre of banana damaged.
But with the catastrophe fund being established, Bobby Pottinger, president of the All-Island Banana Growers Association, said "... if it (a catastrophe) happens then we are able to give everybody some assistance."
