WRMS will use the fresh capital to develop and implement the yield guarantee solution to improve the resilience of 100,000 smallholder farmers in India against climate risks.
InsuResilience Solutions Fund (ISF), managed by the Frankfurt School of Finance & Management (FS), and financed by KfW Development Bank, signed a grant agreement with Weather Risk Management Services (WRMS), an agriculture risk management company, and INGEN Technologies, a data provider of weather stations, to co-fund the project development and implementation of the yield guarantee solution. The project aims to improve the resilience of 100,000 smallholder farmers in India against climate risks and incentivize smart agricultural risk management practices, as well as to scale up the yield guarantee solution for crops such as cotton, chili, paddy, wheat and potato.
Weather Risk Management Services (WRMS) offers SecuFarm – the world’s first smart and sustainable farming solution for smallholders to provide them with farm level yield guarantee and an assured income. The solution guarantees farmers a benchmark yield provided they follow the Package of Practice (PoP) shared with them on the SecuFarm app. If the actual yield is still below the benchmark yield due to any extreme weather attack or crop disease, the farmer is compensated by WRMS, in proportion to the shortfall. This innovative concept allows incorporation of the necessary farm level risk reduction measures in the insurance product design offered by insurance companies and incentivizes smart and sustainable farming practices. This in turn allows to offer premium discount or a higher guaranteed yield to farmers who take the necessary farm level risk management measures. Fees for the yield guarantee are paid by the farmers (without subsidies). On this agreement, Anuj Kumbhat, Founder & CEO, WRMS said, “At WRMS, our aim is to build resilience of smallholder farmers by giving those equal opportunities to thrive. With this new association with InsuResilience Solutions Fund, we are now ready to further ramp up our SecuFarm services to the next level and support the smallholders to our maximum extent. With support of ISF, our focus will be on reaching out to over 100,000 smallholder farmers and building digital SecuFarms to create a larger economic, social and environmental impact”.
