Agricultural Index Insurance Pairs Economics, Natural Sciences For Climate Resilience in East Africa

By Alex Russell

For poor and subsistence farmers in developing countries, a severe drought, flood or other catastrophe can cost them everything. In response to these kinds of climate-related risks, farmers often choose to minimize their exposure to loss. They might avoid higher-cost improved seeds that promise bigger harvests or riskier but profitable cash crops. Both of these strategies can keep them poor.

Maize farmers in Tanzania. Agricultural index insurance could help small farmers like these invest in higher-value crops and increase their income.