Updated Aug 14, 2020

Bolstering Agricultural Risk Management by Coupling Index Insurance With Stress Tolerant Seed Varieties

https://basis.ucdavis.edu/project/bundling-innovative-risk-management-technologies-improve-nutritional-outcomes-africa

Tara Chiu

Send Message

The use of stress tolerant maize seeds with the financial innovation of agricultural index insurance boosts the income stability and food security of Sub-Saharan maize farmers, bringing those farmers closer to securing comprehensive drought protection

Seed varieties have been developed that better withstand climatic stresses like droughts and floods. The financial technology of index insurance also exists transferring risk out of small-scale farming systems by issuing compensatory payments when climatic events occur and agricultural production collapses. This approach submitting here combines the two risk mitigating methodologies to create a...
SEE ALL
Seed varieties have been developed that better withstand climatic stresses like droughts and floods. The financial technology of index insurance also exists transferring risk out of small-scale farming systems by issuing compensatory payments when climatic events occur and agricultural production collapses. This approach submitting here combines the two risk mitigating methodologies to create a complementarity between them that expands the coverage of farmer risk far more broadly than each innovation alone.
SEE LESS

Stage 4: Transition to Scale

Focus Areas:

Agriculture

AgricultureSEE LESS

Implemented In:

Tanzania, Mali, Mozambique and 2 MoreSEE ALL

Tanzania, Mali, Mozambique, Bangladesh and Burkina FasoSEE LESS

5
Countries Implemented In
Verified Funding
?

Problem

Severe drought will cause even seeds labeled "drought tolerant" to fail, costing farmers not only their main source of food for the year but also the money spent on improved seeds

}

Solution

By bundling stress tolerant/drought tolerant seeds with financial innovations such as index insurance expands farmer resilience to include even the worst possible outcomes.

Target Beneficiaries

The first target for beneficiaries are Sub-Saharan maize farmers, but this could expand significantly to include all farmers struggling with drought risk.

Competitive Advantage

While the work to date on both stress tolerant seeds and index insurance is encouraging, the complementary nature of the two technologies together have not been explored. With new drought tolerant (DT) maize varieties ready to go to market, and with our growing knowledge of how to design effective insurance products for small-scale agriculture, now is an opportune moment to combine and amplify the impacts of these once separate solutions.

Milestone

Date Unknown
Funds RaisedVERIFIED
$2,250,000
Date Unknown
New Country Implemented In
Burkina Faso
Date Unknown
New Country Implemented In
Bangladesh
Date Unknown
New Country Implemented In
Mozambique
Date Unknown
New Country Implemented In
Mali
Date Unknown
New Country Implemented In
Tanzania