scholarly journals Weather index insurance for managing drought risk in smallholder agriculture: lessons and policy implications for sub-Saharan Africa

2015 ◽  
Vol 3 (1) ◽  
Author(s):  
Million A. Tadesse ◽  
Bekele A. Shiferaw ◽  
Olaf Erenstein
Keyword(s):  
Policy Implications ◽  
Sub Saharan Africa ◽  
Index Insurance ◽  
Drought Risk ◽  
Smallholder Agriculture ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Sub Saharan

scholarly journals Impact of Weather Index Insurance on Groundnut Farmers’ Technical Efficient in Senegal: A Propensity Score Matching Approach

2017 ◽  
Vol 10 (5) ◽  
pp. 131
Author(s):  
Baoubadi Atozou ◽  
Kotchikpa Gabriel Lawin ◽  
Diombare Niang
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Technical Efficiency ◽  
Sub Saharan Africa ◽  
Index Insurance ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Sub Saharan ◽  
The Impact ◽  
Matching Techniques

Irregular and low rainfall levels and drought have become important sources of low agricultural yields and agricultural incomes in sub-Saharan Africa. Weather index insurance is a financial product for climate risk management aimed at securing farmers' incomes. This paper aims to evaluate the impact of a weather index insurance project piloted with groundnut farmers in Senegal in 2015-2016 agricultural season on farmer’s technical efficiency (TE). A Stochastic Production Frontier model was used to estimate the TE scores. A matched group of beneficiaries and control farmers was determined using propensity score matching techniques to mitigate biases stemming from observed variables. The results showed that average TE is consistently higher for control farmers than the beneficiary group. Age, gender and education were found to be significantly related to technical efficiency, while membership in farmers’ association, credit, improved seeds and extension contact were not significantly related to technical efficiency. From a policy perspective, we suggest that weather index insurance programs targeting smallholder farmers in developing countries, and particularly in sub-Saharan Africa, be accompanied with education services, provision of new technologies such as high yield seeds and other best farm management practices and credit to help farmers better adapt to weather shocks and secure their production and income. 

scholarly journals The Use of Remotely Sensed Rainfall for Managing Drought Risk: A Case Study of Weather Index Insurance in Zambia

2016 ◽  
Vol 8 (4) ◽  
pp. 342 ◽  
Author(s):  
Emily Black ◽  
Elena Tarnavsky ◽  
Ross Maidment ◽  
Helen Greatrex ◽  
Agrotosh Mookerjee ◽  
...  
Keyword(s):  
Remotely Sensed ◽  
Index Insurance ◽  
Drought Risk ◽  
Weather Index ◽  
Weather Index Insurance

The Viability of Weather-index Insurance in Managing Drought Risk in Rural Australia

2016 ◽  
Vol 12 (2) ◽  
pp. 125-142 ◽  
Author(s):  
Adewuyi Ayodele Adeyinka ◽  
Chandrasekhar Krishnamurti ◽  
Tek Narayan Maraseni ◽  
Sommarat Chantarat
Keyword(s):  
Index Insurance ◽  
Drought Risk ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Rural Australia

scholarly journals Contrasting Influences of Seasonal and Intra-Seasonal Hydroclimatic Variabilities on the Irrigated Rice Paddies of Northern Peninsular Malaysia for Weather Index Insurance Design

2021 ◽  
Vol 13 (9) ◽  
pp. 5207
Author(s):  
Zed Zulkafli ◽  
Farrah Melissa Muharam ◽  
Nurfarhana Raffar ◽  
Amirparsa Jajarmizadeh ◽  
Mukhtar Jibril Abdi ◽  
...  
Keyword(s):  
Pearson Correlation ◽  
Extreme Rainfall ◽  
Peninsular Malaysia ◽  
Coefficient Of Determination ◽  
Index Insurance ◽  
Weather Index ◽  
Basis Risk ◽  
Insurance Contracts ◽  
Weather Index Insurance ◽  
Streamflow Statistics

Good index selection is key to minimising basis risk in weather index insurance design. However, interannual, seasonal, and intra-seasonal hydroclimatic variabilities pose challenges in identifying robust proxies for crop losses. In this study, we systematically investigated 574 hydroclimatic indices for their relationships with yield in Malaysia’s irrigated double planting system, using the Muda rice granary as a case study. The responses of seasonal rice yields to seasonal and monthly averages and to extreme rainfall, temperature, and streamflow statistics from 16 years’ observations were examined by using correlation analysis and linear regression. We found that the minimum temperature during the crop flowering to the maturity phase governed yield in the drier off-season (season 1, March to July, Pearson correlation, r = +0.87; coefficient of determination, R2 = 74%). In contrast, the average streamflow during the crop maturity phase regulated yield in the main planting season (season 2, September to January, r = +0.82, R2 = 67%). During the respective periods, these indices were at their lowest in the seasons. Based on these findings, we recommend temperature- and water-supply-based indices as the foundations for developing insurance contracts for the rice system in northern Peninsular Malaysia.

scholarly journals Farmers’ Demand for Informal Risk Management Strategy and Weather Index Insurance: Evidence from China

2021 ◽  
Author(s):  
Yingmei Tang ◽  
Huifang Cai ◽  
Rongmao Liu
Keyword(s):  
Risk Management ◽  
Field Experiments ◽  
Management Strategies ◽  
Insurance Companies ◽  
Index Insurance ◽  
Insurance Demand ◽  
Weather Index ◽  
Weather Index Insurance ◽  
Risk Management Strategies ◽  
The Government

AbstractIn the absence of formal risk management strategies, agricultural production in China is highly vulnerable to climate change. In this study, field experiments were conducted with 344 households in Heilongjiang (Northeast China) and Jiangsu (East China) Provinces. Probit and logistic models and independent sample T-test were used to explore farmers’ demand for weather index insurance, in contrast to informal risk management strategies, and the main factors that affect demand. The results show that the farmers prefer weather index insurance to informal risk management strategies, and farmers’ characteristics have significant impacts on their adoption of risk management strategies. The variables non-agricultural labor ratio, farmers’ risk perception, education, and agricultural insurance purchase experience significantly affect farmers’ weather index insurance demand. The regression results show that the farmers’ weather index insurance demand and the influencing factors in the two provinces are different. Farmers in Heilongjiang Province have a higher participation rate than those in Jiangsu Province. The government should conduct more weather index insurance pilot programs to help farmers understand the mechanism, and insurance companies should provide more types of weather index insurance to meet farmers’ diversified needs.

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