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(QNO) - The Hiep Thuan Agricultural Cooperative is the first facility in Vietnam to prepare insurance for its areas of plantation forest in the stormy season.
Solutions to risks
The Hiep Thuan Agricultural Cooperative is located in Thuan An hamlet (Hiep Thuan commune, Hiep Duc district, Quang Nam province). The cooperative has 15 members and cooperates with 200 households in Hiep Thuan and Hiep Hoa (Hiep Duc) to build a value chain of acacia with an area of 1,200 hectares of plantation forests.
Quang Nam is always under the bad impacts of natural disasters, especially storms, which affect the local forest plantations. According to statistics, over one-to-two-year-old 400 hectares of forest were ruined in the 2020 rainy and stormy season.
Accordingly, some solutions are suggested in order to help local households with forest plantations.
Thanks to the support from the project on sustainable forest management and biodiversity conservation under the US Agency of International Development (USAID), a fund for plantation forests was founded in 2022.
Then, the project bought typhoon insurance from Bao Minh Insurance Corporation for the plantation forest areas.
The Hiep Thuan Agricultural Cooperative, with financial support from USAID, has bought one-year typhoon insurance from Hillridge Technology for nearly 155 hectares of plantation forest from January 15, 2024, to January 14, 2025.
Keeping farmers from planting large timber forests
According to the assigned contract, Hillridge Technology will provide technological solutions, and Bao Minh will be responsible for insurance packages.
Currently, the cooperative has 1,200 hectares of plantation forests that meet the criteria for sustainable forest management. More than 12.8% of the area has typhoon insurance. The cooperative will connect the members of the cooperative and affiliated households to buy this insurance.
Agriculture is a field of risky investment because it depends heavily on the weather. However, the rate of farmers participating in production insurance is only about 5% in Vietnam.
In the current unusual weather conditions, if farmers buy insurance, they will quickly restore production and stabilise their lives in case of unfortunate damage caused by natural disasters.