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....

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...

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...

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,...

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...

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,...

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...

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...

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”...

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...

Typhoons, pests and other natural calamities cause the country, particularly the agricultural sector, significant damages. For instance, Typhoons Yolanda (Haiyan) and Ompong (Mangkhut) have caused PHP 35 billion and PHP 27 billion worth of agricultural damages, respectively, based on estimates...

The challenges faced by agricultural systems call for an advance in risk management (RM) assessments. This research identifies and discusses potential improvements to RM across 11 European Union (EU) farming systems (FS). The paper proposes a comprehensive, participatory approach that accounts...

US crop insurance is subsidized to encourage producers to participate and reduce their risk exposure. However, what has been the impact of these subsidies on insurance demand and crop acres planted? Using a simultaneous system of two equations, we quantify both insurance participation and...

India is home to over one-third of all undernourished children worldwide, and it ranks 94th out of 107 nations in the Global Hunger Index 2020. Instability in production and market risks make agriculture a risky business and directly affect farmers' income levels, thereby impacting food...

Over the last years, the agricultural sector has faced increasing risks related not only to production activities, but also to climate adversity and a higher frequency of extreme events. These factors, combined with increased price volatility in the markets, have caused greater exposure to risk...

In developing countries, crop insurance is a major factor of sustainability for farming business. Due to the lack of infrastructure and of claims experts in these regions, parametric crop insurance is the favorite way of providing insurance. Parametric insurance has the advantage of reducing the...

Abstract: In India agriculture is highly susceptible such risks as drought, floods, erratic rainfall, and other natural calamities etc… Therefore it is necessary to protect the farmers from the above said natural calamities and provide financial help for the next season. Since inception of the...

Agricultural insurance has attracted considerable interest in recent years. Innovations in agricultural index insurance have raised expectations that the private sector can overcome shortcomings associated with more traditional indemnity-based products like multi-peril crop insurance, and...

The fluctuations in incomes inherent in rural communities can be attenuated by reciprocal insurance. We develop a model of such insurance based on self-interested behaviour and voluntary participation. One individual assists another only if the costs of so doing are outweighed by the benefits...

Index insurance offers an innovative risk management solution for uninsured agricultural weather risk. We investigate the theoretical relationship between prospect theory risk preferences and characteristics of index insurance. We pair these theoretical findings with data from a lab-in-the-field...

Although crop insurance was not designed to impact water resources, it may have unintended consequences for water use, because agriculture and water resources are tightly linked. In particular, crop production relies on water as an input, and irrigation for crop production is the largest user of...