The Government of Saint Lucia has officially launched a Parametric Insurance Scheme to protect banana farmers from the devastating impacts of climate change. The initiative, branded the Regional Economic Agri-Insurance Programme, was unveiled on Friday, July 18th, with an initial government grant of EC $1 million.

The scheme aims to provide banana producers with financial security in the wake of natural disasters and extreme weather events that continue to threaten the agriculture sector.

Prime Minister Philip J. Pierre, who delivered remarks at the launch, reflected on the historical and economic importance of banana farming in Saint Lucia, once referred to as the island’s “green gold.”

He noted that during the height of banana exports to the United Kingdom under a protected trade regime, the industry brought in a steady flow of foreign exchange that contributed significantly to the development of rural communities like Micoud and Dennery, and by extension, the broader economy.

“We sold our bananas in a protected market to Europe for several years… there was a flow of foreign exchange that came into our economy and developed the rural community,” Pierre said, adding that this financial boost also spurred growth in the northern part of the island.

Despite its historical contributions, Pierre lamented that banana farmers have never received adequate recognition for their role in nation-building.

“Banana farmers were never recognised enough; it was green gold that developed this economy, long before tourism.”

The Prime Minister said the insurance programme reflects his government’s confidence in the agricultural sector and is part of a wider thrust to keep banana farming viable, especially for young people: “The most devastating thing is to get up in the morning and find that your entire crop is wiped out… you really don’t have anything.”

PM Pierre also highlighted broader government plans to modernise and secure agriculture through innovation and youth engagement. He referenced a recently launched initiative to promote agricultural innovation among Saint Lucian youth with hydroponics, and emphasised that policies must protect both livelihoods and the people who sustain them.

“You protect what you have, you innovate, but at the same time you protect the people,” he said.

The Prime Minister further announced that the government would cover the initial payment toward a national pension plan for fisherfolk, a move he framed as another demonstration of his administration’s commitment to protecting the country’s most essential workers.

Minister for Agriculture, Alfred Prospere, explained that the programme stemmed from a regional consensus among agriculture ministers to proactively address the vulnerability of the farming sector.

“We saw and understood the vulnerability and the impacts climate change is having on the agricultural sector in the region. I remember clearly the conclusion was that every minister for agriculture would go to their prime minister and ensure that we request one million EC dollars to start with,” he explained.

He noted that despite initial concerns about how to secure such funding, government made the allocation a reality in the 2024 national budget.