REMARKS BY THE ASSISTANT SECRETARY GENERAL AT THE 2015 SYMPOSIUM FOR FACILITATING THE DEVELOPMENT OF AGRICULTURAL INSURANCE IN THE AMERICAS

February 13, 2015 - Washington, DC

It is a pleasure to be back with you again. I remember well speaking here in 2012.

In reality I could repeat my message save a few modifications here and there. Why? The answer is simple; the issues of 2012 agriculture and risk management remain the issues of today and for the foreseeable future.

In 2012 we spoke of climate change and its pervasive affects on agriculture. We spoke of the risks to agriculture and the need to develop practical strategies so farmers can continue providing food to the family, community and beyond. We talked of the need for insurance to help protect farmers in times of loss and help them recover as quickly as possible.

If anything, these issues are even more important today.

In 2012 the OAS issued the Declaration of Cochabamba entitled, “Food Security with Sovereignty in the Americas”.

IICA played an important role in shaping that document and we thank you for it. I quote from its concluding statement, “…agricultural innovation is a catalyst for growth and positive change, and that its advancement is vital to increase and intensify production and productivity, improve incomes, reduce poverty and inequality, decrease the environmental impacts of the agri-food sector, respond to natural disasters, increase access to new technologies, adapt to climate change and, consequently, achieve food security and a better quality of life for all our peoples”.

Insurance as one important example of the innovation contemplated in this document.

We are particularly mindful of the need for more investment and practical solutions for the millions of small farmers, including women, in the Americas. They represent a large part of the solution to address food insecurity. Their success is our success. Their improved livelihoods increase our likelihood for survival in the face of several billion more mouths to feed in the coming decades. We note with concern that the vast majority of the population growth will come from less developed countries. The very countries where agriculture is needed most.

In this situation we are pleased to note the inclusion of micro-insurance in today’s agenda. We hope to see that promising risk management tool firmly established in more countries.

We note with concern that some of the most vulnerable countries in the Americas, many in Central America are not pursuing agricultural insurance. In fact, some I am told have actually moved to a largely inactive stage. This is moving in the wrong direction and will actually increase food insecurity.

We are also concerned with the high percentage of food imports in many countries. The country and its citizens are increasingly vulnerable to food price volatility when upwards of 90% of the food consumed in a country is imported. The Caribbean’s food import bill is over $4 billion a year and rising. This price tag is preventing countries from investing in needed infrastructure, education, health care and other essential public goods.

This trend is simply not sustainable. We simply must invest more in climate smart agriculture and invest in practical risk management practices for all farmers, particularly small farmers and their families. Developing private-public partnerships are essential in this regard. We also must encourage governments and the private sector to promote and facilitate agricultural entrepreneurship, especially among the youth and in the rural areas.

On behalf of the Organization of American States I want to thank each of you, both from the public and private sectors for your interest, capacity and commitment to find ways to advance the establishment and expansion of agricultural insurance in the Americas. Special mention should be made of IICA, and especially David Hatich, who have effectively promoted insurance as a critical risk management tool in the Americas. This event is but one example.

In reviewing the agenda for today it is clear that you are not only focusing on information sharing, which is vitally important, but also on seeking practical concrete steps to work more collaboratively together. I look forward to the outcome of this meeting. I thank you for your attention.

Thank you.