The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa

Under high climatic, disease and market uncertainty, smallholder farmers make heuristic decisions on whether to manage risk and invest in profitable alternatives or, as a risk-averse mechanism, continue with the traditional low-risk low-return practices. The goal of this paper is to investigate the...

Full description

Bibliographic Details
Main Authors: Mponela, Powell, Kizito, Fred
Format: Manuscript-unpublished
Language:Inglés
Published: 2022
Subjects:
Online Access:https://hdl.handle.net/10568/134608
_version_ 1855522064846290944
author Mponela, Powell
Kizito, Fred
author_browse Kizito, Fred
Mponela, Powell
author_facet Mponela, Powell
Kizito, Fred
author_sort Mponela, Powell
collection Repository of Agricultural Research Outputs (CGSpace)
description Under high climatic, disease and market uncertainty, smallholder farmers make heuristic decisions on whether to manage risk and invest in profitable alternatives or, as a risk-averse mechanism, continue with the traditional low-risk low-return practices. The goal of this paper is to investigate the role of information, social capital, and resource endowments on farmers' decision to invest in insurance bundled with fertilizer and modern improved seeds and its impacts on food security indicators including surplus produce, marketing share, and produce storage. Results show that insurance induces a 113% increase in the proportion of maize sold and an increased probability to keep food reserves for the lean period by 42%. Impacts of insurance on marketing and storage are contingent on cropping system, agro-advisory and resource endowments with differentiated effects. These findings reveal that bundling crop insurance with high-cost productivity improving inorganic fertilizers and modern improved varieties bred for drought tolerance is a viable option for farmers to make risky productivity-enhancing investments and improve livelihoods that contribute economic development and food security.
format Manuscript-unpublished
id CGSpace134608
institution CGIAR Consortium
language Inglés
publishDate 2022
publishDateRange 2022
publishDateSort 2022
record_format dspace
spelling CGSpace1346082025-11-05T11:26:14Z The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa Mponela, Powell Kizito, Fred food security advisory services crop insurance bundling risk Under high climatic, disease and market uncertainty, smallholder farmers make heuristic decisions on whether to manage risk and invest in profitable alternatives or, as a risk-averse mechanism, continue with the traditional low-risk low-return practices. The goal of this paper is to investigate the role of information, social capital, and resource endowments on farmers' decision to invest in insurance bundled with fertilizer and modern improved seeds and its impacts on food security indicators including surplus produce, marketing share, and produce storage. Results show that insurance induces a 113% increase in the proportion of maize sold and an increased probability to keep food reserves for the lean period by 42%. Impacts of insurance on marketing and storage are contingent on cropping system, agro-advisory and resource endowments with differentiated effects. These findings reveal that bundling crop insurance with high-cost productivity improving inorganic fertilizers and modern improved varieties bred for drought tolerance is a viable option for farmers to make risky productivity-enhancing investments and improve livelihoods that contribute economic development and food security. 2022-12-02 2023-11-22T07:42:05Z 2023-11-22T07:42:05Z Manuscript-unpublished https://hdl.handle.net/10568/134608 en Limited Access application/pdf Mponela, P.; Kizito, F. (2022) The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa. Alliance for Bioversity and CIAT, C/O IITA, Accra, Ghana . 21 p.
spellingShingle food security
advisory services
crop insurance
bundling
risk
Mponela, Powell
Kizito, Fred
The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa
title The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa
title_full The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa
title_fullStr The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa
title_full_unstemmed The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa
title_short The indirect impact of crop insurance on household food security in the Guinea savannah region of West Africa
title_sort indirect impact of crop insurance on household food security in the guinea savannah region of west africa
topic food security
advisory services
crop insurance
bundling
risk
url https://hdl.handle.net/10568/134608
work_keys_str_mv AT mponelapowell theindirectimpactofcropinsuranceonhouseholdfoodsecurityintheguineasavannahregionofwestafrica
AT kizitofred theindirectimpactofcropinsuranceonhouseholdfoodsecurityintheguineasavannahregionofwestafrica
AT mponelapowell indirectimpactofcropinsuranceonhouseholdfoodsecurityintheguineasavannahregionofwestafrica
AT kizitofred indirectimpactofcropinsuranceonhouseholdfoodsecurityintheguineasavannahregionofwestafrica