Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India
In rainfed production systems throughout India, agricultural activities are dependent upon the summer monsoon, and any aberration in monsoon rainfall patterns can have severe consequences for rice production. There is considerable policy interest in designing programs to lower small‐scale farmers’ e...
| Autores principales: | , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2020
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/142364 |
| _version_ | 1855538068881145856 |
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| author | Ward, Patrick S. Makhija, Simrin Spielman, David J. |
| author_browse | Makhija, Simrin Spielman, David J. Ward, Patrick S. |
| author_facet | Ward, Patrick S. Makhija, Simrin Spielman, David J. |
| author_sort | Ward, Patrick S. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | In rainfed production systems throughout India, agricultural activities are dependent upon the summer monsoon, and any aberration in monsoon rainfall patterns can have severe consequences for rice production. There is considerable policy interest in designing programs to lower small‐scale farmers’ exposure to these types of risk given the regularity with which adverse monsoon events occur. This paper introduces a field experiment conducted with two risk management options in the state of Odisha: a drought‐tolerant rice cultivar; and a weather index insurance product designed to complement the performance of the cultivar. Uptake rates for the cultivar itself and for the joint product are compared across two years alongside an analysis of factors that predict uptake. Results indicate high levels of demand for both the products, albeit with a significant degree of price sensitivity. But this sensitivity is agnostic to the nature of price reductions, suggesting that public investments that lower the costs of risk management may be sufficient to encourage broad uptake, without necessarily relying upon distortionary subsidies as is so often done. Sustained demand between years one and two is primarily explained where individuals were indemnified in year one and had a large number of peers also purchasing the product. |
| format | Journal Article |
| id | CGSpace142364 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1423642025-02-24T06:48:12Z Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India Ward, Patrick S. Makhija, Simrin Spielman, David J. insurance risk management monsoon climate rice capacity development smallholders drought drought tolerance climate change In rainfed production systems throughout India, agricultural activities are dependent upon the summer monsoon, and any aberration in monsoon rainfall patterns can have severe consequences for rice production. There is considerable policy interest in designing programs to lower small‐scale farmers’ exposure to these types of risk given the regularity with which adverse monsoon events occur. This paper introduces a field experiment conducted with two risk management options in the state of Odisha: a drought‐tolerant rice cultivar; and a weather index insurance product designed to complement the performance of the cultivar. Uptake rates for the cultivar itself and for the joint product are compared across two years alongside an analysis of factors that predict uptake. Results indicate high levels of demand for both the products, albeit with a significant degree of price sensitivity. But this sensitivity is agnostic to the nature of price reductions, suggesting that public investments that lower the costs of risk management may be sufficient to encourage broad uptake, without necessarily relying upon distortionary subsidies as is so often done. Sustained demand between years one and two is primarily explained where individuals were indemnified in year one and had a large number of peers also purchasing the product. 2020-01-01 2024-05-22T12:10:22Z 2024-05-22T12:10:22Z Journal Article https://hdl.handle.net/10568/142364 en https://hdl.handle.net/10568/147493 Open Access Wiley Ward, Patrick S.; Makhija, Simrin; and Spielman, David J. 2020. Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India. Australian Journal of Agricultural and Resource Economics 64(2): 421-454. https://doi.org/10.1111/1467-8489.12342 |
| spellingShingle | insurance risk management monsoon climate rice capacity development smallholders drought drought tolerance climate change Ward, Patrick S. Makhija, Simrin Spielman, David J. Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India |
| title | Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India |
| title_full | Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India |
| title_fullStr | Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India |
| title_full_unstemmed | Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India |
| title_short | Drought‐tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multi‐year field experiment in India |
| title_sort | drought tolerant rice weather index insurance and comprehensive risk management for smallholders evidence from a multi year field experiment in india |
| topic | insurance risk management monsoon climate rice capacity development smallholders drought drought tolerance climate change |
| url | https://hdl.handle.net/10568/142364 |
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