Improving performance of index insurance using crop models and phenological monitoring

Extreme weather events cause considerable damage to livelihoods of smallholder farmers globally. Whilst index insurance can help farmers cope with the financial consequences of extreme weather, a major challenge for index insurance is basis risk, where insurance payouts correlate poorly with actual...

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Main Authors: Afshar, Mehdi H, Foster, Timothy, Higginbottom, Thomas P, Parkes, Ben, Hufkens, Koen, Mansabdar, Sanjay, Ceballos, Francisco, Kramer, Berber
Format: Artículo preliminar
Language:Inglés
Published: CGIAR Research Program on Climate Change, Agriculture and Food Security 2020
Subjects:
Online Access:https://hdl.handle.net/10568/110712
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author Afshar, Mehdi H
Foster, Timothy
Higginbottom, Thomas P
Parkes, Ben
Hufkens, Koen
Mansabdar, Sanjay
Ceballos, Francisco
Kramer, Berber
author_browse Afshar, Mehdi H
Ceballos, Francisco
Foster, Timothy
Higginbottom, Thomas P
Hufkens, Koen
Kramer, Berber
Mansabdar, Sanjay
Parkes, Ben
author_facet Afshar, Mehdi H
Foster, Timothy
Higginbottom, Thomas P
Parkes, Ben
Hufkens, Koen
Mansabdar, Sanjay
Ceballos, Francisco
Kramer, Berber
author_sort Afshar, Mehdi H
collection Repository of Agricultural Research Outputs (CGSpace)
description Extreme weather events cause considerable damage to livelihoods of smallholder farmers globally. Whilst index insurance can help farmers cope with the financial consequences of extreme weather, a major challenge for index insurance is basis risk, where insurance payouts correlate poorly with actual crop losses. We analyze to what extent the use of crop simulation models and crop phenology monitoring can reduce basis risk in index insurance. Using a biophysical process-based crop model (APSIM) applied for rice producers in Odisha, India, we simulate a synthetic yield dataset to train non-parametric statistical models to predict rice yields as a function of meteorological and phenological conditions. We find that the performance of statistical yield models depends on whether meteorological or phenological conditions are used as predictors, and whether one aggregates these predictors by season or crop growth stage. Validating the preferred statistical model with observed yield data, we find that the model explains around 54% of the variance in rice yields at the village cluster (Gram Panchayat) level, outperforming vegetation index-based models that were trained directly on the observed yield data. Our methods and findings can guide efforts to design smart phenology-based index insurance and target yield monitoring resources in smallholder farming environments.
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spelling CGSpace1107122025-11-06T07:41:11Z Improving performance of index insurance using crop models and phenological monitoring Afshar, Mehdi H Foster, Timothy Higginbottom, Thomas P Parkes, Ben Hufkens, Koen Mansabdar, Sanjay Ceballos, Francisco Kramer, Berber capacity development crop yield crop production agriculture food security crop modelling climate change Extreme weather events cause considerable damage to livelihoods of smallholder farmers globally. Whilst index insurance can help farmers cope with the financial consequences of extreme weather, a major challenge for index insurance is basis risk, where insurance payouts correlate poorly with actual crop losses. We analyze to what extent the use of crop simulation models and crop phenology monitoring can reduce basis risk in index insurance. Using a biophysical process-based crop model (APSIM) applied for rice producers in Odisha, India, we simulate a synthetic yield dataset to train non-parametric statistical models to predict rice yields as a function of meteorological and phenological conditions. We find that the performance of statistical yield models depends on whether meteorological or phenological conditions are used as predictors, and whether one aggregates these predictors by season or crop growth stage. Validating the preferred statistical model with observed yield data, we find that the model explains around 54% of the variance in rice yields at the village cluster (Gram Panchayat) level, outperforming vegetation index-based models that were trained directly on the observed yield data. Our methods and findings can guide efforts to design smart phenology-based index insurance and target yield monitoring resources in smallholder farming environments. 2020-12-31 2021-01-05T15:24:22Z 2021-01-05T15:24:22Z Working Paper https://hdl.handle.net/10568/110712 en https://doi.org/10.3390/rs13050924 https://doi.org/10.2499/p15738coll2.134941 Open Access application/pdf CGIAR Research Program on Climate Change, Agriculture and Food Security Afshar MH, Foster T, Higginbottom TP, Parkes B, Hufkens K, Mansabdar S, Ceballos F, Kramer B. 2020. Improving performance of index insurance using crop models and phenological monitoring. CCAFS Working Paper no. 337. Wageningen, the Netherlands: CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS).
spellingShingle capacity development
crop yield
crop production
agriculture
food security
crop modelling
climate change
Afshar, Mehdi H
Foster, Timothy
Higginbottom, Thomas P
Parkes, Ben
Hufkens, Koen
Mansabdar, Sanjay
Ceballos, Francisco
Kramer, Berber
Improving performance of index insurance using crop models and phenological monitoring
title Improving performance of index insurance using crop models and phenological monitoring
title_full Improving performance of index insurance using crop models and phenological monitoring
title_fullStr Improving performance of index insurance using crop models and phenological monitoring
title_full_unstemmed Improving performance of index insurance using crop models and phenological monitoring
title_short Improving performance of index insurance using crop models and phenological monitoring
title_sort improving performance of index insurance using crop models and phenological monitoring
topic capacity development
crop yield
crop production
agriculture
food security
crop modelling
climate change
url https://hdl.handle.net/10568/110712
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