Agriculture is the backbone of our rural economy. Nearly 60 percent of our population depend on agriculture for livelihood, not to mention its critical role in securing our food security. However, the agriculture sector faces unprecedented challenges—many of which have been compounded by climate change, human-wildlife conflict (HWC), shortage of farm labour, and increasing rural-urban migration. Farming is no longer seen as a secure or attractive source of livelihood.

In this wake, the recent announcement by the government to implement the National Crop and Livestock Insurance Scheme is a welcome news. This scheme, set to cost the government Nu 927.83 million over the next four years, offers a much-needed lifeline to farmers who are grappling with the dual threats of climate unpredictability and wildlife depredation. The immediate relief provided by this insurance will be critical in building a more sustainable and resilient agricultural sector in the long run.

In recent years, Bhutan has witnessed a sharp rise in human-wildlife conflicts, especially in rural areas where agricultural land and forest habitats increasingly overlap. Wild animals often destroy crops and prey on livestock, causing significant losses to farmers. But there is little recourse for recovery.

At the same time, climate change is impacting agriculture like never before. Erratic weather patterns, including extreme events such as floods and hailstorms, disrupt farming cycles. The unpredictable shifts in weather make it difficult for farmers to rely on traditional agricultural methods, increasing both the risks and uncertainties involved in crop and livestock production.

The increasing frequency of crop and livestock loss has led many to abandon farming altogether. Large swathes of agricultural land are left fallow. The decline in agricultural activity has massive repercussions on our food security. On the contrary, our food imports have been increasing over the years. This trend not only leads to outflow of hard currency but also increases the country’s trade deficit.

The introduction of the National Crop and Livestock Insurance Scheme is therefore a timely intervention. By offering financial protection against the risks posed by wildlife and climate-related damage, the insurance scheme will provide immediate relief to farmers.

The government’s proposed insurance model is also more affordable than previous iterations, with reduced premiums of 5.8 percent for crop insurance and 15 percent for livestock insurance in the first year. This will make the insurance accessible to a larger number of farmers. With government subsidies covering 50 percent of the insurance premiums, the burden on farmers will be greatly reduced, making the scheme accessible to those who are most in need.

While the insurance scheme will provide critical short-term relief, the government must focus on making agriculture sustainable in the long term. This would mean implementing more effective wildlife management strategies, promoting climate smart farming techniques, and improving irrigation systems, among others.

The government must also invest in infrastructure to support rural livelihoods, including rural credit systems, farm equipment subsidies, and training on sustainable agricultural practices. These measures will make farming more attractive, and revitalise the agriculture sector.