Suchergebnisse

Australian Aid ; Department for International Development, United Kingdom ; European Union ; Peer Review

AbstractAgricultural (index) insurance for smallholders in developing countries has gained traction in academic and policy circles. The expectation is that the uptake of insurance will protect smallholders from production shocks and incentivize them to modernize production. We develop a simple theoretical model to demonstrate that the welfare effects of insurance are fundamentally ambiguous—even in the absence of transaction costs or basis risk. The second-best nature of the institutional context within which smallholders operate implies that the uptake of insurance may accentuate pre-existing inefficiencies. This idea is worked out in detail for the case of livestock herding on common grazing lands. Our theoretical model predicts that insurance invites overstocking of communal lands, and lowers the profitability of herding when common pastures are degraded.

At the request of the government of Kenya and under its guidance, a team of national and international experts conducted an appraisal of different agricultural insurance options for Kenya.This appraisal, as set out in this document and the accompanying technical analysis, lays out the costs and benefits of developing large-scale agricultural insurance that involves both the public and private spheres.The analysis considers potential structures for large-scale agricultural insurance in Kenya, the fiscal cost to the government of Kenya, and the economic benefits for farmers and pastoralists.In order for it to partner with the private sector to prepare and implement a large scale agricultural insurance program, the government should consider taking the following next steps.The government of Kenya may build on there commendations by the Program Steering Committee to take the lead in formulating a national policy on agriculture insurance, in cooperation with county administrations and private insurance companies. The government of Kenya may develop a road map for establishing the institutions required for large-scale agricultural insurance programs, with the goal of covering at least a fifth of Kenya's agricultural producers. As next steps for establishing livestock insurance, the government of Kenya may decide how to integrate the proposed insurance product with other existing protection mechanisms. As next steps for crop insurance, the government of Kenya may seek consultations with agricultural banks and work with private sector insurers to develop a data audit system acceptable to international reinsurers.

Livestock Insurance is one of the insurance products supported by the government with PT Jasindo as the organizer. Livestock insurance will provide the potential for cattle ranchers who can get risk threats such as cattle deaths due to illness, accidents, losses caused by theft, and deaths due to breeding. This study aims to determine the value of the willingness of farmers to pay the insurance and the factors that affect the willingness of farmers to pay insurance. This research was conducted from February to March 2020 in the Kulon Progo district. Location determination is done by purposive sampling based on data from the farmer following the insurance program. Primary data obtained from 53 farmers with the help of a questionnaire and analyzed by the method of contingency value (CVM) and multiple linear regression. The research shows the average value of willingness to pay insurance is IDR45,660 per head per year above the value of the insurance premium assessment. Factors that significantly influence a Farmer's Willingness to Pay (WTP) for the Insurance program are the variable number of family dependants and income, while the age, duration of raising, and education have no significant effect. Based on the value of the EWTP obtained, which is very low, the expectation of farmers is not to demand too low a price.