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
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 ALLStage 4: Transition to Scale
Focus Areas:
Agriculture
Implemented In:
Tanzania, Mali, Mozambique and 2 MoreSEE ALL
5
Countries Implemented In
Verified Funding
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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
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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
TITLEBundling Innovative Risk Management Technologies to Improve Nutritional Outcomes of Vulnerable Agricultural Households
TYPEGrant
FOCUS AREAS
Agriculture
Implemented InMozambique and Tanzania
ORGANIZATIONSU.S. Agency for International Development, University of California, DavisU.S. Agency for International Development, University of California, Davis
as part of
Bureau of Food Security, Feed the Future Innovation Lab for Markets, Risk and Resilience, Feed the FutureBureau of Food Security, Feed the Future Innovation Lab for Markets, Risk and Resilience, Feed the FutureDate 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
