Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria
The majority of farmers in sub-Saharan Africa (SSA) lack the means to mitigate the impact of risks associated with rainfall and commodity prices due to financial constraints and the imperfect insurance markets in these countries. Because most SSA farmers are risk averse, they may be willing to inves...
| Main Authors: | , |
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| Format: | Brief |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2012
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/153926 |
| _version_ | 1855514840590712832 |
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| author | Takeshima, Hiroyuki Yamauchi, Futoshi |
| author_browse | Takeshima, Hiroyuki Yamauchi, Futoshi |
| author_facet | Takeshima, Hiroyuki Yamauchi, Futoshi |
| author_sort | Takeshima, Hiroyuki |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The majority of farmers in sub-Saharan Africa (SSA) lack the means to mitigate the impact of risks associated with rainfall and commodity prices due to financial constraints and the imperfect insurance markets in these countries. Because most SSA farmers are risk averse, they may be willing to invest in productive assets that can mitigate the impacts of such risks if their financial constraints are relaxed through external financial assistance. We analyze panel data on investment behavior of Nigerian farmers who received financial assistance for acquiring productive assets. The empirical results show that farmers facing higher rainfall risks are more likely to invest in irrigation pumps that can mitigate the impact of poor rainfall. Similarly, farmers facing the higher price fluctuations for unmilled cassava (gari) are more likely to invest in milling machines that enable them to sell milled cassava, an alternative cassava product with a more stable price. Public support for farmers’ acquisition of productive assets like irrigation pumps and milling machines will not only enhance their productivity but also help shield them from rainfall and commodity price risks. |
| format | Brief |
| id | CGSpace153926 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2012 |
| publishDateRange | 2012 |
| publishDateSort | 2012 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1539262025-11-06T04:21:04Z Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria Takeshima, Hiroyuki Yamauchi, Futoshi irrigation rainfall crop insurance pumps price risk risk management milling machine cassava The majority of farmers in sub-Saharan Africa (SSA) lack the means to mitigate the impact of risks associated with rainfall and commodity prices due to financial constraints and the imperfect insurance markets in these countries. Because most SSA farmers are risk averse, they may be willing to invest in productive assets that can mitigate the impacts of such risks if their financial constraints are relaxed through external financial assistance. We analyze panel data on investment behavior of Nigerian farmers who received financial assistance for acquiring productive assets. The empirical results show that farmers facing higher rainfall risks are more likely to invest in irrigation pumps that can mitigate the impact of poor rainfall. Similarly, farmers facing the higher price fluctuations for unmilled cassava (gari) are more likely to invest in milling machines that enable them to sell milled cassava, an alternative cassava product with a more stable price. Public support for farmers’ acquisition of productive assets like irrigation pumps and milling machines will not only enhance their productivity but also help shield them from rainfall and commodity price risks. 2012 2024-10-01T13:58:25Z 2024-10-01T13:58:25Z Brief https://hdl.handle.net/10568/153926 en Open Access application/pdf International Food Policy Research Institute Takeshima, Hiroyuki; and Yamauchi, Futoshi. 2012. Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria. NSSP Policy Note 33. Abuja, Nigeria and Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/153926 |
| spellingShingle | irrigation rainfall crop insurance pumps price risk risk management milling machine cassava Takeshima, Hiroyuki Yamauchi, Futoshi Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria |
| title | Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria |
| title_full | Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria |
| title_fullStr | Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria |
| title_full_unstemmed | Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria |
| title_short | Irrigation pumps and milling machines as insurance against rainfall and price risks in Nigeria |
| title_sort | irrigation pumps and milling machines as insurance against rainfall and price risks in nigeria |
| topic | irrigation rainfall crop insurance pumps price risk risk management milling machine cassava |
| url | https://hdl.handle.net/10568/153926 |
| work_keys_str_mv | AT takeshimahiroyuki irrigationpumpsandmillingmachinesasinsuranceagainstrainfallandpricerisksinnigeria AT yamauchifutoshi irrigationpumpsandmillingmachinesasinsuranceagainstrainfallandpricerisksinnigeria |