Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification

Farmers in India are increasingly exposed to climate change and natural disasters, causing extreme hardship. Anticipating the possibility of such calamities, farmers underinvest in productivity-enhancing technologies. Policymakers hence seek ways to improve farmers’ resilience, and delivery of risk...

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Autores principales: Ceballos, Francisco, Kramer, Berber, Mishra, Azad, Robles, Miguel, Toor, Mann S.
Formato: Informe técnico
Lenguaje:Inglés
Publicado: International Initiative for Impact Evaluation 2020
Materias:
Acceso en línea:https://hdl.handle.net/10568/143482
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author Ceballos, Francisco
Kramer, Berber
Mishra, Azad
Robles, Miguel
Toor, Mann S.
author_browse Ceballos, Francisco
Kramer, Berber
Mishra, Azad
Robles, Miguel
Toor, Mann S.
author_facet Ceballos, Francisco
Kramer, Berber
Mishra, Azad
Robles, Miguel
Toor, Mann S.
author_sort Ceballos, Francisco
collection Repository of Agricultural Research Outputs (CGSpace)
description Farmers in India are increasingly exposed to climate change and natural disasters, causing extreme hardship. Anticipating the possibility of such calamities, farmers underinvest in productivity-enhancing technologies. Policymakers hence seek ways to improve farmers’ resilience, and delivery of risk management strategies, including crop insurance, has become a major objective on policy agendas. Existing insurance products, however, face several challenges. On one hand, traditional indemnity insurance products suffer high transaction costs and moral hazard (Hazell, et al. 1986). On the other hand, index-based insurance, which could overcome such concerns by relying on indices that are easily measurable and outside the farmer’s control, suffer low demand due to basis risk, lack of trust, and poor product ownership (Cole et al. 2013). The study was conducted in Haryana and Punjab, two states in northwest India. These two states are the second and third largest wheat producing states in India and the largest contributors to the central pool of food grains used to provide welfare entitlements to India’s poor. Farmers in these states also have higher agricultural incomes and larger landholding sizes compared to the rest of India (Government of India 2016). However, in the last decade, yield-growth has stagnated and farmers have struggled with depleted water tables and poor soil fertility (Ministry of Agriculture and Farmer’s Welfare 2015–2016).
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publishDate 2020
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spelling CGSpace1434822025-02-24T06:49:10Z Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification Ceballos, Francisco Kramer, Berber Mishra, Azad Robles, Miguel Toor, Mann S. insurance risk management technology farmers capacity development crop insurance feasibility studies mobile equipment smart materials Farmers in India are increasingly exposed to climate change and natural disasters, causing extreme hardship. Anticipating the possibility of such calamities, farmers underinvest in productivity-enhancing technologies. Policymakers hence seek ways to improve farmers’ resilience, and delivery of risk management strategies, including crop insurance, has become a major objective on policy agendas. Existing insurance products, however, face several challenges. On one hand, traditional indemnity insurance products suffer high transaction costs and moral hazard (Hazell, et al. 1986). On the other hand, index-based insurance, which could overcome such concerns by relying on indices that are easily measurable and outside the farmer’s control, suffer low demand due to basis risk, lack of trust, and poor product ownership (Cole et al. 2013). The study was conducted in Haryana and Punjab, two states in northwest India. These two states are the second and third largest wheat producing states in India and the largest contributors to the central pool of food grains used to provide welfare entitlements to India’s poor. Farmers in these states also have higher agricultural incomes and larger landholding sizes compared to the rest of India (Government of India 2016). However, in the last decade, yield-growth has stagnated and farmers have struggled with depleted water tables and poor soil fertility (Ministry of Agriculture and Farmer’s Welfare 2015–2016). 2020-08-01 2024-05-22T12:14:26Z 2024-05-22T12:14:26Z Report https://hdl.handle.net/10568/143482 en https://doi.org/10.1016/j.agrformet.2018.11.002 https://doi.org/10.1016/j.deveng.2019.100042 https://doi.org/10.2499/p15738coll2.133524 Open Access International Initiative for Impact Evaluation Ceballos, Francisco; Kramer, Berber; Mishra, Azad; Robles, Miguel; and Toor, Mann S. 2020. Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification. https://doi.org/10.23846/TW13FE11
spellingShingle insurance
risk management
technology
farmers
capacity development
crop insurance
feasibility studies
mobile equipment
smart materials
Ceballos, Francisco
Kramer, Berber
Mishra, Azad
Robles, Miguel
Toor, Mann S.
Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification
title Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification
title_full Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification
title_fullStr Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification
title_full_unstemmed Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification
title_short Picture-based crop insurance (PBI): Using farmers’ smartphone pictures to reduce basis risk and costs of loss verification
title_sort picture based crop insurance pbi using farmers smartphone pictures to reduce basis risk and costs of loss verification
topic insurance
risk management
technology
farmers
capacity development
crop insurance
feasibility studies
mobile equipment
smart materials
url https://hdl.handle.net/10568/143482
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