This paper provides novel evidence on how risk exposure shapes the demand for index-based weather insurance. The focus is on Mongolia, where index insurance is offered as a commercially marketed product to pastoralists threatened by extreme weather events that cause high livestock mortality....

Economic risks for farmers have increased during recent years due to various factors such as more extreme climate conditions and the volatility of agricultural markets. We analysed the preferences of Finnish farmers and non-farming citizens concerning catastrophic risk management policies in...

We provide novel evidence of how an innovative market-based solution using remote-sensing technology can mitigate conflict. Droughts are a major driver of conflict in Africa, particularly between nomadic pastoralists and sedentary farmers, and climate change is predicted to intensify this...

Weather index insurance may help smallholder farmers in the developing world cope with environmental risks and shock-induced poverty traps. Despite this, adoption rates remain low. Basis risk—or the disconnect between observed outcomes and the index itself—is cited as a core contributor,...

The impacts of extreme weather events on crop production are largely heterogeneous along the timing dimension of the shocks, and the varieties being affected. We investigate the yield-temperature relationships for three categories of earliness of durum wheat: early-maturing, middle-maturing, and...

We provide novel evidence of how an innovative market-based solution using remote-sensing technology can mitigate conflict. Droughts are a major driver of conflict in Africa, particularly between nomadic pastoralists and sedentary farmers, and climate change is predicted to intensify this...

Effective agricultural insurance and risk management program rely on accurate crop yield forecasting. In this paper, we propose a novel deep factor model for crop yield forecasting and crop insurance ratemaking. This framework first utilizes a deep autoencoder to extract a latent factor, called...

Background: The intradisciplinary knowledge in our research framework for this implementation is: Parametric Insurance, Aquaculture Indemnification, Life Circle Assessment (LCA) and Economically Motivated Adulteration (EMA) avoidance.Objective: The newly introduced “Quantum Marketing”...

Smallholder farmers in developing countries generally lack access to affordable agricultural insurance, in part because of high loss verification costs and asymmetric information in indemnity insurance and basis risk in index-based insurance. Advances in remote sensing and other digital...

The federal multi-peril crop insurance program is a significant risk management tool for America’s agricultural producers. The crop insurance program has been historically lauded by both Democrat and Republican congressional leaders and it has received strong support in recent farm bills. In...

We explore the uptake dynamics of a rainfall index insurance in Kenya in relation to a measure of perceived basis risk. We find notable levels of perceived negative basis risk, with around 7% of farmers receiving no pay-out following ‘drought-like’ conditions in the germination period. Next,...

This paper examines whether agricultural insurance can boost investment by small scale farmers in West Africa. We conduct a randomized evaluation to analyze the impacts of index insurance for cotton farmers in Burkina Faso. We find no impact of insurance on cotton, but, consistent with...

This paper reviews and synthesizes IFPRI’s research program on agricultural insurance since 2009, a period that encompasses all the activities for which financial support from PIM was obtained during 2012-2020. The paper reviews activities that were undertaken, synthesizes and evaluates the...

The weather index-based insurances may help farmers to cope with climate risks overcoming the most common issues of traditional insurances. However, the weather index-based insurances present the limit of the basis risk: a significant yield loss may occur although the weather index does not...

This article aims to evaluate the effect of insurance on production, technical efficiency, and input use of Italian specialised-quality grape growers. A panel instrumental variable stochastic frontier approach is applied over the years 2008-2017 using data from the Farm Accountancy Data Network....

Risk management in agriculture is crucial and policymakers are implementing policy reforms to foster farmers’ adoption of ex-ante risk management tools such as crop insurance: their effectiveness is the core of policy evaluations exercises. The Italian subsidised crop insurance market has been...

The presence of myriad forms of risks has given noteworthy motivation to the development of a number of agricultural risk management tools and strategies. Crop insurance is recommended as a useful instrument for the farmers to manage the diverse croprelated risk while covering the pertinent...

Agriculture remains the dominant sector in the rural areas where over 70% of Nigerian resides and it’s still the backbone of our economy. The observed poor performance of farmers in agricultural productivity is due to the nature of risks and uncertainties in agriculture. Agricultural insurance...

The objective of the study was to identify the main factors influencing farmers' willingness to take up agricultural insurance and participate in a mutual fund for non-insurable risks in the Czech Republic. Responses from 214 representative farms were processed using descriptive statistics,...

Agriculture plays a significant role in Rwanda’s economic growth but is still highly rain-fed with risks and losses caused by adverse natural and climate shocks. Agricultural insurance schemes are widely recognized as potential risk management strategies. This study aims to examine the...

Basis risk––an imperfect correlation between an aggregate index and idiosyncratic damage––is a major impediment to index insurance take-up in developing countries. However, empirical evidence is scarce because of the difficulty in its direct measurement. This study uses household panel...

The purpose of this paper is to examine weather risk management by application of weather derivatives in agriculture and evaluate the hedging efficiency. Agriculture is a sector highly sensitive to meteorological elements that affect the yield of many crops. The underlying weather indices...