Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India

This paper provides some of the first empirical evidence on farmers’ demand for two drought risk–management products: a recently released DT rice cultivar and a more comprehensive DT-WII risk–management bundle. The paper makes several noteworthy contributions. First, drawing on insights from extreme...

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Detalles Bibliográficos
Autores principales: Ward, Patrick S., Makhija, Simrin, Spielman, David J.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/147493
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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 This paper provides some of the first empirical evidence on farmers’ demand for two drought risk–management products: a recently released DT rice cultivar and a more comprehensive DT-WII risk–management bundle. The paper makes several noteworthy contributions. First, drawing on insights from extreme value theory, it demonstrates how a comprehensive risk–management product could be designed, highlighting the reduction in the cost of drought insurance achieved through the bundling approach. Second, it estimates the price sensitivity of demand and other predictors of uptake for the DT cultivar and the DT-WII product by drawing on survey data from a two-year field experiment in which sales of the DT cultivar and DT-WII product were randomly assigned to villages across three drought-prone districts in Odisha. Finally, it explores the novel finding that uptake of the WII product persisted into year two at prices higher than the actuarially fair cost.
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spelling CGSpace1474932025-11-06T05:48:37Z Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India Ward, Patrick S. Makhija, Simrin Spielman, David J. insurance risk management uncertainty rice agriculture crop insurance drought drought tolerance This paper provides some of the first empirical evidence on farmers’ demand for two drought risk–management products: a recently released DT rice cultivar and a more comprehensive DT-WII risk–management bundle. The paper makes several noteworthy contributions. First, drawing on insights from extreme value theory, it demonstrates how a comprehensive risk–management product could be designed, highlighting the reduction in the cost of drought insurance achieved through the bundling approach. Second, it estimates the price sensitivity of demand and other predictors of uptake for the DT cultivar and the DT-WII product by drawing on survey data from a two-year field experiment in which sales of the DT cultivar and DT-WII product were randomly assigned to villages across three drought-prone districts in Odisha. Finally, it explores the novel finding that uptake of the WII product persisted into year two at prices higher than the actuarially fair cost. 2017 2024-06-21T09:22:57Z 2024-06-21T09:22:57Z Working Paper https://hdl.handle.net/10568/147493 en https://hdl.handle.net/10568/153726 https://hdl.handle.net/10568/147891 https://doi.org/10.2499/p15738coll2.134239 http://purl.umn.edu/211909 https://hdl.handle.net/10568/148052 https://doi.org/10.1111/1477-9552.12403 application/pdf International Food Policy Research Institute Ward, Patrick S.; Makhija, Simrin; and Spielman, David J. 2017. Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India. IFPRI Discussion Paper 1679. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147493
spellingShingle insurance
risk management
uncertainty
rice
agriculture
crop insurance
drought
drought tolerance
Ward, Patrick S.
Makhija, Simrin
Spielman, David J.
Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India
title Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India
title_full Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India
title_fullStr Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India
title_full_unstemmed Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India
title_short Drought-tolerant rice, weather index insurance, and comprehensive risk management for smallholders: Evidence from a multiyear field experiment in India
title_sort drought tolerant rice weather index insurance and comprehensive risk management for smallholders evidence from a multiyear field experiment in india
topic insurance
risk management
uncertainty
rice
agriculture
crop insurance
drought
drought tolerance
url https://hdl.handle.net/10568/147493
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AT makhijasimrin droughttolerantriceweatherindexinsuranceandcomprehensiveriskmanagementforsmallholdersevidencefromamultiyearfieldexperimentinindia
AT spielmandavidj droughttolerantriceweatherindexinsuranceandcomprehensiveriskmanagementforsmallholdersevidencefromamultiyearfieldexperimentinindia