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1 – 10 of 221Marcelo José Carrer, Rodrigo Lanna Franco da Silveira, Marcela de Mello Brandão Vinholis and Hildo Meirelles De Souza Filho
The purpose of this study is to investigate the determinants of agricultural insurance adoption by farmers of the state of São Paulo, Brazil.
Abstract
Purpose
The purpose of this study is to investigate the determinants of agricultural insurance adoption by farmers of the state of São Paulo, Brazil.
Design/methodology/approach
Primary data from the 2015/2016 crop season was collected from a sample of 175 farmers. Logit econometric models were applied to identify the variables that affect the probability of agricultural insurance adoption.
Findings
The empirical results show that the education level, access to technical assistance, use of management tools and farm size positively affect the probability of adopting agricultural insurance. In addition, farmers who produce soybean and/or corn are more likely to use insurance. On the other hand, the higher the farmers’ propensity to take risk the lower the likelihood of using insurance.
Research limitations/implications
The empirical analysis is based on cross-sectional data of a sample of 175 farmers of the state of São Paulo. The use of panel data with a larger sample of farmers, considering a period of years, could provide additional information.
Originality/value
To the best of the knowledge, this is the first empirical analysis about determinants of agricultural insurance adoption by Brazilian farmers, considering behavioral factors. The findings provide useful insights for policymakers in formulating risk management programs in the Brazilian agricultural markets. A better understanding about the determinants of insurance adoption is also relevant for private companies that sell insurance to farmers. Therefore, the paper may contribute with the diffusion of rural insurance as risk management tool in Brazilian agriculture.
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Miranda P.M. Meuwissen, Yann de Mey and Marcel van Asseldonk
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Chandan Kumar Jha, Vijaya Gupta, Utpal Chattopadhyay and Binilkumar Amarayil Sreeraman
This study aims to evaluate the link between climate/weather change and farmer migration in Bihar, India. The influence of cognitive conditions and climate-related stress on…
Abstract
Purpose
This study aims to evaluate the link between climate/weather change and farmer migration in Bihar, India. The influence of cognitive conditions and climate-related stress on farmer migration decisions and the socioeconomic characteristics of migrating and non-migrating farm households are analysed. The focus is the role of migration in access to climate and agricultural extension services and the contribution of migration to enhanced farmer coping capacity.
Design/methodology/approach
A primary survey was conducted of farm households in seven districts of Bihar, India. Farmer perceptions of climate change were analysed using the mental map technique. The role of socioeconomic characteristics in farm household migration was evaluated using binary logistic regression, and the influence of migration on access to climate and agricultural extension services and the adaptive capacity of migrating households was investigated using descriptive statistics.
Findings
Climate-induced livelihood risk factors are one of the major drivers of farmer’s migration. The farmers’ perception on climate change influences migration along with the socioeconomic characteristics. There is a significant difference between migrating and non-migrating farm households in the utilization of instructions, knowledge and technology based climate and agriculture extension services. Benefits from receipt of remittance, knowledge and social networks from the host region enhances migrating households’ adaptive capacity.
Originality/value
This study provides micro-evidence of the contribution of migration to farmer adaptive capacity and access to climate and agricultural extension services, which will benefit analyses of climate-induced migration in other developing countries with higher agricultural dependence. In addition, valuable insights are delivered on policy requirements to reduce farmer vulnerability to climate change.
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Chandan Kumar Jha and Vijaya Gupta
The farmers used several information sources to gather information about the climatic variability and modern agricultural practices to cope with climate change. The choice of…
Abstract
Purpose
The farmers used several information sources to gather information about the climatic variability and modern agricultural practices to cope with climate change. The choice of adaptation strategies and the successful implication of adaptation strategies depend on accurate, timely information on the climate variability and precise technical details of adaptation strategies. By keeping the importance of climate information and agricultural extension information in the center, this study aims to conduct a micro-level evaluation of farmers’ choice of climate information, agriculture extension services and agricultural credit sources. This study’s primary objective is to understand how the different sources of climate information and agricultural extension influence farm household adaptation decisions.
Design/methodology/approach
This study has been conducted in three subs agro-climatic zone of the Middle Gangetic Plain region, which falls in India’s Bihar state. This paper has randomly selected seven districts from these three subs agro-climatic zone to collect the data. The analysis of this study is based on survey data collected from 700 farm households. This study has used descriptive statistics and a logistic regression model to assess the sources of climate information, agricultural extension and credit sources and how these sources influence farm households’ adaptation decisions.
Findings
The result of this study shows farmers are using different traditional (sharing experience, newspaper and radio), information and communication technology (mobile and TV) and institutional arrangements (agricultural officer and meteorological department) in the study area. The study’s finding identifies different farm households’ different sources and how these options farming farmers’ adaptation decisions. The study further revealed that institutional factors such as extension services and access to information on climate change increase the probability of adopting knowledge-intensive adaptation strategies such as soil conservation, water conservation, crop insurance and planting horticulture and vegetables.
Research limitations/implications
The study has conducted a micro-level assessment of adaptation behavior at the local level to understand the factor influencing the adaptation decision. This study’s finding is useful in designing the appropriate policy framework for the farm household’s capacity building to enhance their technical skills and awareness toward the institutional arrangements.
Originality/value
This paper’s finding pointed out institutional arrangements’ requirement to improve adaptive capacity to make long-term strategic decisions to cope with climate change.
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Lena Kuhn and Ihtiyor Bobojonov
Lack of access to credit is commonly held responsible for slow agricultural and rural development in low- and middle-income countries. This paper aims to investigate the…
Abstract
Purpose
Lack of access to credit is commonly held responsible for slow agricultural and rural development in low- and middle-income countries. This paper aims to investigate the contribution of demand- and supply-side factors, particularly the role of risk rationing, on credit application and uptake in the case example of Kyrgyzstan.
Design/methodology/approach
Toward this aim, the study explores the determinants of credit behavior of 1,738 Kyrgyz sample farm households from 2013 to 2016 waves of the nationally representative “Life in Kyrgyzstan” (LIK) dataset along a hierarchical regression model, differentiating between factors influencing individual demand for credit and factors influencing supply for credit.
Findings
The results of our analysis indicate the relative importance of demand-side factors for credit applications, reflecting farmers' perceived risk of credit default and loss of collateral. Meanwhile, supply-side factors, such as real credit constraints and collateral requests, have a stronger influence on credit uptake rates and overall loan sums. These findings highlight the role of risk rationing for agricultural investment, suggesting a stronger focus of development policy on improving risk-sharing mechanisms for farmers, e.g. by developing the agricultural insurance sector.
Originality/value
The paper contributes novel evidence on the role of risk rationing in shaping the demand for formal credits for increasing agricultural and rural investment in low-income transition economies. Previous research has mostly focused on the role of credit supply, thus underrating the potential contribution of individual risk attitude, risk experience and risk sharing.
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