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What we do

With research staff from more than 60 countries, and offices across the globe, IFPRI provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition in developing countries.

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researcher spotlight

Samuel Benin

Samuel Benin is the Acting Director for Africa in the Development Strategies and Governance Unit. He conducts research on national strategies and public investment for accelerating food systems transformation in Africa and provides analytical support to the African Union’s CAADP Biennial Review.

Where we work

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Where we work

IFPRI currently has more than 600 employees working in over 80 countries with a wide range of local, national, and international partners.

IFPRI Regional Programs

IFPRI Country Programs

Research by country and region

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TOPIC

Risk and Insurance

Farming can be a risky endeavor. While farmers in developed countries have access to a range of financial instruments—including credit and insurance—to manage agricultural risks, many farmers in developing countries, and especially women and other marginalized groups, cannot fall back on these safety nets. For them, risk is one of the main barriers to expanding investments in agriculture.

IFPRI’s research aims to improve the availability, affordability, and quality of financial instruments designed to reduce the risk of agricultural investments, such as agricultural insurance, risk-contingent credit, or mobile banking systems that improve the functioning of informal insurance. This includes improving product design through use of digital technologies, bundling with risk-reducing agricultural technologies and practices and agro-advisories, and conducting rigorous impact evaluations of the cost-effectiveness of these innovations in enhancing resilience. A major focus of this research is on assessing how to make these financial instruments more gender responsive.

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This research, implemented together with partners, has led to the emergence of innovative products tailored to the local needs of both farmers and bankers and insurers, such as picture-based crop insurance and remote-sensing enabled risk-contingent credit.IFPRI’s research on risk and insurance is closely aligned with the Sustainable Development Goals (SDGs), including SDG 1, SDG 2, and SDG 10, and the CGIAR Impact Areas on Poverty Reduction, Livelihoods, and Jobs and Gender Equality, Youth, and Social Inclusion.

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topics

Publications

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Journal Article

Using climate financing wisely to address multiple crises

2024Läderach, Peter; Desai, Bina; Pacillo, Grazia; Roy, Shalini; Kosec, Katrina; Ruckstuhl, Sandra; Loboguerrero, Ana Maria
Details

Using climate financing wisely to address multiple crises

A convergence of several risk drivers creates the compound crises we see across the globe today. At the same time, the global humanitarian community and national institutions in affected countries are increasingly resource constrained. In this context, existing financing mechanisms should be evaluated for their potential to create synergies between social protection, peace, and inclusion objectives on the one hand and climate resilience outcomes on the other. The existing international architecture of climate change mitigation and adaptation policy and financing holds, in principle, the potential to address not only its main purpose of climate action, but also to contribute to development outcomes and address multiple risk drivers. Examples of this exist, but for these mutual benefits to emerge, and for climate finance to contribute more significantly to crises prevention, the agendas must become more aligned. Aligning several factors may enable coherence: i) Timeframes, from short-term response to multi-year programming; ii) Planning and targeting, moving towards conflict-sensitive area-based approaches and universal access to services; iii) Institutional arrangements and partnerships, coordinated national planning and jointly implemented local action.

Year published

2024

Authors

Läderach, Peter; Desai, Bina; Pacillo, Grazia; Roy, Shalini; Kosec, Katrina; Ruckstuhl, Sandra; Loboguerrero, Ana Maria

Citation

Läderach, P.; Desai, B.; Pacillo, G.; Roy, S.; Kosec, K.; Ruckstuhl, S.; Loboguerrero, A.M. (2024) Using climate financing wisely to address multiple crises. PLOS Climate 3(2): e0000355. ISSN: 2767-3200

Keywords

Climate Change; Finance; Climate Services; National Planning; Risk Assessment; Stakeholders; Frameworks; Institutional Learning; Coordination

Language

English

Access/Licence

Open AccessCC-BY-4.0

Links

https://doi.org/10.1371/journal.pclm.0000355 Source record

Project

Climate Resilience

Record type

Journal Article

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Conference Paper

Basis Risk, Social Comparison, Perceptions of Fairness and Demand for Insurance: A Field Experiment in Ethiopia

2024Kramer, Berber; Porter, Maria; Wassie Bizuayehu, Solomon
Details

Basis Risk, Social Comparison, Perceptions of Fairness and Demand for Insurance: A Field Experiment in Ethiopia

Index insurance is considered an important strategy to reduce agricultural risk and increase smallholder farmers’ investments. However, insured farmers may develop mistrust of insurance if they experience crop losses and do not receive a payout, for instance because index insurance covers only a subset of covariate risks. At the same time, insurance for idiosyncratic risks would introduce differences in payouts within social networks, which might be considered unfair, introduce jealousy, and further depress demand for insurance. We conduct lab-in-the-field experiments with farmers in Ethiopia to examine the effects of a novel insurance approach that ensures insurance payouts for farmers with crop losses due to idiosyncratic events. We also examine the effects of informing farmers about their neighbors’ experiences alongside their own. We find that such social comparison increases perceived fairness of weather index insurance. In addition, providing complete insurance coverage for crop losses increases farmers’ perceived fairness of outcomes and willingness to pay, without introducing jealousy over neighbors receiving different payouts. Finally, we find that the increase in willingness to pay for complete insurance is concentrated among men and risk averse respondents.

Year published

2024

Authors

Kramer, Berber; Porter, Maria; Wassie Bizuayehu, Solomon

Citation

Kramer, Berber; Porter, Maria; and Wassie Bizuayehu, Solomon. 2023. Basis risk, social comparison, perceptions of fairness and demand for insurance: A field experiment in Ethiopia. Paper presented at the 2024 AEA/ASSA Annual Meeting, January 5-7, 2024, San Antonia, TX. http://dx.doi.org/10.22004/ag.econ.339075

Country/Region

Ethiopia

Keywords

Africa; Sub-saharan Africa; Eastern Africa; Risk; Insurance; Demand; Risk Management; Crop Insurance

Language

English

Access/Licence

Open Access

Links

https://doi.org/10.22004/ag.econ.339075 Source record

Project

Diversification in East and Southern Africa

Record type

Conference Paper

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Brief

Evaluation of a livestock financing project in Bangladesh: Navigating operational, environmental, and behavioral challenges

2023Ambler, Kate; Bakhtiar, M. Mehrab; Brauw, Alan de; Uddin, Mohammad Riad
Details

Evaluation of a livestock financing project in Bangladesh: Navigating operational, environmental, and behavioral challenges

Smallholder farmers in low- and middle-income countries have limited access to finance, due to the pau city of banks and other financial institutions in rural areas. As a result, banks and other formal financial institutions tend not to know much about farming as a business, and therefore they hesitate to extend credit to farmers. Such reluctance is often attributed to the elevated costs and risks linked with small, geographically dispersed farms, as well as the farmers’ lack of collateral. Microfinance has emerged as a crucial intervention in bridging this gap. However, the fixed and rigid repayment structures of microfinance institutions (MFIs) often clash with the seasonal nature of agricultural production. This mismatch creates financial strain for farmers, who must manage cash flows that are inherently unpredictable due to factors like weather variability and market fluctuations. These challenges underscore the need for more flexible and tailored financial solutions.

Year published

2023

Authors

Ambler, Kate; Bakhtiar, M. Mehrab; Brauw, Alan de; Uddin, Mohammad Riad

Citation

Ambler, Kate; Bakhtiar, M. Mehrab; de Brauw, Alan; and Uddin, Mohammad Riad. 2023. Evaluation of a livestock financing project in Bangladesh: Navigating operational, environmental, and behavioral challenges. Rethinking Food Markets Initiative Note December 2023. Washington, DC: International Food Policy Research Institute (IFPRI).

Country/Region

Bangladesh

Keywords

Asia; Southern Asia; Smallholders; Finance; Rural Areas; Farming; Mircofinance; Risk

Language

English

Access/Licence

Open Access

Links

https://doi.org/10.2499/p15738coll2.137043 Source record

Project

Rethinking Food Markets

Record type

Brief

Blogs

Harnessing telecommunications network data for rainfall monitoring in developing countries
IFPRI Blog
 | 
February 24, 2020

Harnessing telecommunications network data for rainfall monitoring in developing countries

By Noam David, Oliver Gao, and Yanyan Liu

Filling a key information gap can make it easier to provide insurance to smallholders.

Can weather index insurance help farmers adapt to climate change?
IFPRI Blog
 | 
December 13, 2019

Can weather index insurance help farmers adapt to climate change?

By Berber Kramer

Technology and data on farming conditions can help reduce exposure to risk. Fourth in a series.

Policy seminar: Building resilience through financial inclusion
IFPRI Blog
 | 
June 05, 2019

Policy seminar: Building resilience through financial inclusion

By Katarlah Taylor

Insurance and other forms of financial support can help poor families build resilience to economic and climate shocks—but we need to know more.

Events

Innovations in agricultural insurance: Lessons learnt about managing smallholder farmer risks
IFPRI Program/Country Event

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October 26, 2021, 11:00 – 12:00 pm

Innovations in agricultural insurance: Lessons learnt about managing smallholder farmer risks

Virtual Event: OCT 26, 2021 – 11:00 AM to 12:00 PM EDT. This webinar will present an evaluation of how action oriented research on tools for improving smallholder farmers have spawned further interest by different sector actors. 

Challenges and Opportunities for Latin American Agriculture
IFPRI at External Event

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October 10 to 11, 2019

Challenges and Opportunities for Latin American Agriculture

IFPRI is participating in an international seminar on Challenges and Opportunities for Agriculture in Latin America, which will be held on October 10th and 11th, 2019 in Rio de Janeiro, Brazil. This international seminar will discuss the difficulties and prospects for agriculture in Latin America, a region that currently accounts for a quarter of total exports […]

The 5th Global Science Conference on Climate-Smart Agriculture 2019
IFPRI at External Event

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October 8 to 10, 2019

The 5th Global Science Conference on Climate-Smart Agriculture 2019

IFPRI is participating in the 5th Global Science Conference on Climate-Smart Agriculture (CSA), which will be held from October 8-10, 2019. Since the term climate-smart agriculture (CSA) was coined in 2010, the biannual global science conferences on CSA have emerged as the key global forum for scientific exchange to underpin CSA implementation.  The conference will […]

News

February 02, 2023 | In the News

A digital push for agri but with less funds (Live Mint) 

A new digital infrastructure for farmers and an accelerator fund to encourage startups were among the major announcements in India’s latest budget, writes Live Mint in a story. The digital public infrastructure for agriculture will be built as an open-source public good that will enable farmer-centric solutions. The proposed digital agri-stack will aid farmers with […]

November 20, 2022 | In the News

Policy paper on agricultural insurance on works (Kenya News Agency) 

Kenya News Agency reports on the recent workshop on innovation in Agricultural Risk Management in Kenya, quoting Peter Owoko, the Director of Agriculture Policy Research and Regulations at the Ministry of Agriculture, who underscored the need for innovations in product development and distribution. In the last three years, several Kenyan and international organizations have been […]

June 01, 2022 | In the News

Budget watchdog, all federal — Episode 22: The Farm Bill with special guest Dr. Joe Glauber (Taxpayer’s for Commonsense) 

Taxpayer’s for Commonsense produced a podcast with senior research fellow Joseph Glauber. Glauber talked about various parts of the Farm Bill, social protection, and crop insurance. Some of his comments included, “The farm bills have been around for a long, long time. We go back to the early 1930s with all the New Deal legislation […]

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David Spielman

David Spielman

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Francisco Ceballos

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Berber Kramer

Berber Kramer

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