The agriculture ministry says it is working with the Food and Agriculture Organization of the United Nations (FAO) to develop an insurance scheme for farmers.
The focus during the pilot stage will be the nutmeg and cocoa sub-sectors.
It comes as the need for crop insurance takes focal point, following human action and natural disaster issues in recent times.
There have been models presented in the past for crop insurance, according to Chief Agriculture Officer Daniel Lewis.
The focus this time around is index insurance; it is a new approach to insurance that pays out benefits on the basis of a predetermined index.
At the Tuesday held media brief, Lewis pointed out that having an insurance scheme in place will better assist farmers to rebound from a natural disaster.
At the moment, they are putting together a database of cocoa and nutmeg farmers.
The project, during the pilot phase, will involve St. Vincent, Jamaica and Grenada.
The Chief Agricultural Officer says a memorandum of understanding will be signed with farmers, to begin discussions on index insurance.
Cocoa and Nutmeg were once two of the more viable crop industries in Grenada.
However, since Hurricane Ivan wreaked havoc in 2004, farmers say it has been difficult for them to get the crops back to their known glory.