Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh

Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently...

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Autores principales: Ward, Patrick S., Spielman, David J., Ortega, David L., Kumar, Neha, Minocha, Sumedha
Formato: Conference Paper
Lenguaje:Inglés
Publicado: 2015
Materias:
Acceso en línea:https://hdl.handle.net/10568/151319
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author Ward, Patrick S.
Spielman, David J.
Ortega, David L.
Kumar, Neha
Minocha, Sumedha
author_browse Kumar, Neha
Minocha, Sumedha
Ortega, David L.
Spielman, David J.
Ward, Patrick S.
author_facet Ward, Patrick S.
Spielman, David J.
Ortega, David L.
Kumar, Neha
Minocha, Sumedha
author_sort Ward, Patrick S.
collection Repository of Agricultural Research Outputs (CGSpace)
description Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently released drought-tolerant rice variety. We illustrate how these tools can independently address drought risk and demonstrate the additional benefits gained by combining them into a complementary risk management product. Findings indicate that farmers are generally unwilling to adopt the drought-tolerant variety independent of insurance, largely due to a yield penalty under non-drought conditions. When bundled with insurance, however, farmers’ valuation of the variety increases. Farmers value insurance on its own, but even more so when bundled with the drought-tolerant variety. The results provide evidence that farmers value the complementarities inherent in a well-calibrated bundle of risk management tools. Ward, Patrick S.; Spielman, David J.; Ortega, David L.; Kumar, Neha; Minocha, Sumedha
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spelling CGSpace1513192025-02-24T06:47:25Z Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh Ward, Patrick S. Spielman, David J. Ortega, David L. Kumar, Neha Minocha, Sumedha insurance seeds rice drought tolerance experimental design risk Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently released drought-tolerant rice variety. We illustrate how these tools can independently address drought risk and demonstrate the additional benefits gained by combining them into a complementary risk management product. Findings indicate that farmers are generally unwilling to adopt the drought-tolerant variety independent of insurance, largely due to a yield penalty under non-drought conditions. When bundled with insurance, however, farmers’ valuation of the variety increases. Farmers value insurance on its own, but even more so when bundled with the drought-tolerant variety. The results provide evidence that farmers value the complementarities inherent in a well-calibrated bundle of risk management tools. Ward, Patrick S.; Spielman, David J.; Ortega, David L.; Kumar, Neha; Minocha, Sumedha 2015-07-28 2024-08-01T02:56:39Z 2024-08-01T02:56:39Z Conference Paper https://hdl.handle.net/10568/151319 en http://purl.umn.edu/211909 https://doi.org/10.1086/700632 https://hdl.handle.net/10568/151317 Open Access Ward, Patrick S.; Spielman, David J.; Ortega, David L.; Kumar, Neha; and Minocha, Sumedha. 2015. Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh. Presented at Agricultural and Applied Economics Association 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California. https://purl.umn.edu/204882
spellingShingle insurance
seeds
rice
drought tolerance
experimental design
risk
Ward, Patrick S.
Spielman, David J.
Ortega, David L.
Kumar, Neha
Minocha, Sumedha
Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh
title Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh
title_full Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh
title_fullStr Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh
title_full_unstemmed Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh
title_short Demand for Complementary Financial and Technological Tools for Managing Drought Risk: Evidence from Rice Farmers in Bangladesh
title_sort demand for complementary financial and technological tools for managing drought risk evidence from rice farmers in bangladesh
topic insurance
seeds
rice
drought tolerance
experimental design
risk
url https://hdl.handle.net/10568/151319
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