Weather index insurance, agricultural productivity, and multiscale resilience. A comparative analysis of farmers with varying exposure to weather shocks in Kenya
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View abstract on PubMed
Summary
This summary is machine-generated.Weather Index Insurance (WII) shows benefits for smallholder farmers under moderate weather shocks but not severe ones due to basis risk. Aggregate risk pooling at the village level and input intensification are key for climate resilience.
Area Of Science
- Agricultural Economics
- Climate Resilience
- Development Studies
Background
- Smallholder agricultural productivity is vital for global food security but vulnerable to weather shocks.
- Conventional risk management tools like insurance are often inaccessible or ineffective for smallholders.
- Weather Index Insurance (WII) offers a potential solution by using meteorological data for payouts.
Purpose Of The Study
- To analyze the association between WII and agricultural productivity across different shock intensities and social scales.
- To investigate the role of agricultural inputs in the WII-yield relationship.
- To understand how WII impacts smallholder decision-making in real-world settings.
Main Methods
- Analysis of observational data from 400 smallholder maize farmers in Kenya.
- Application of a linear regression model with village-level fixed effects.
- Classification of shock severity based on farmer-reported yield loss (>40% for severe shocks).
Main Results
- WII showed a positive yield association under moderate shocks, but not severe shocks, indicating basis risk.
- The WII-yield relationship was influenced by input use, with modern inputs strengthening the association.
- A positive WII association persisted at the village level under severe shocks, suggesting aggregate risk pooling benefits.
Conclusions
- Climate resilience in smallholder systems depends on the interplay of financial risk management, modern agricultural technologies, and socio-institutional support.
- Bundled interventions combining meso-level insurance, input access, and institutional strengthening are recommended.
- Improved seeds and chemical fertilizers are crucial inputs for enhancing yields and resilience.
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