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Keywords = index-seed insurance

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12 pages, 217 KiB  
Article
Crop Insurance, a Frugal Innovation in Tanzania, Helps Small Maize Farmers and Contributes to an Emerging Land Market
by Meine Pieter van Dijk
Land 2022, 11(7), 954; https://doi.org/10.3390/land11070954 - 21 Jun 2022
Cited by 3 | Viewed by 2654
Abstract
A land market is emerging in Tanzania, triggered by initiatives to reform land legislation and modernize agriculture through frugal innovations, combining hybrid seeds and weather-based index insurance with the use of mobile telephones. The analysis shows that agricultural modernization can be a driver [...] Read more.
A land market is emerging in Tanzania, triggered by initiatives to reform land legislation and modernize agriculture through frugal innovations, combining hybrid seeds and weather-based index insurance with the use of mobile telephones. The analysis shows that agricultural modernization can be a driver for an emerging land market. Demand for land increases and because of the liberalization of land rights, land can be bought or leased, something the more successful farmers do. To assess the effects of crop insurance for maize farmers, a frugal innovation, a survey has been carried out in three regions. Two hundred farmers were interviewed using cluster sampling with the villages as sampling units and then selecting households per village. The rural transformation process, driven by innovation, started with the development of an ecosystem and land registration while allowing more private (commercial and non-commercial) initiatives. The triggers are frugal innovations. Crop insurance, combining existing hybrid seeds, with satellite images and mobile telephones, brings about a transformation process and pumps money into the land system. People noticing that hybrid maize works, if you have hybrid seeds, the complementary inputs, and an insurance policy, jump on the band wagon, which leads to more demand for land and contributes to an emerging land market. Full article
(This article belongs to the Special Issue Land: 10th Anniversary)
19 pages, 605 KiB  
Article
The Effect of Social Networks on Smallholder Farmers’ Decision to Join Farmer-Base Seed Producer Cooperatives (FBSc): The Case of Hararghe, Oromia, Ethiopia
by Mulu Debela Ofolsha, Fekadu Beyene Kenee, Dawit Alemu Bimirew, Tesfaye Lemma Tefera and Aseffa Seyoum Wedajo
Sustainability 2022, 14(10), 5838; https://doi.org/10.3390/su14105838 - 11 May 2022
Cited by 9 | Viewed by 3461
Abstract
The paper presents the results of analysis conducted to empirically establish the role of social network in smallholder farmers’ decision to join seed producer cooperative, in Hararghe, Oromia, Ethiopia. We used a ‘random matching within sample’ technique to generate data on social links [...] Read more.
The paper presents the results of analysis conducted to empirically establish the role of social network in smallholder farmers’ decision to join seed producer cooperative, in Hararghe, Oromia, Ethiopia. We used a ‘random matching within sample’ technique to generate data on social links and resources shared like information among their links. Average treatment effects were used to limit ‘non-awareness’ or ‘selection bias’ on participation rate. An econometric strategy was employed to isolate endogenous effect from correlated and contextual social network effects and analyzed by Probit model. Rainfall data was obtained from NMA for 1986–2018 years and analyzed by coefficient of variation (CV) and standardized anomalies index (Z). The result CV and Z shows intra- and inter seasonal variability of rainfall and, the severity and frequency of drought have increase which works against a single optimum seed source. Rate of membership to FBSc was 75% for exposed sub-sample against 70% for the full sample. This shows the existence of exposure bias. The size of social network, linkage with relatives and extension agents influence farmers’ decision to join FBSc and thus, the presence of endogenous effects of social networks. Thus, participation decision is more likely to be affected by characters and structure of social network. Access to off-farm income and perception on profit influences farmer participation decision where weather-indexed seed insurance can service as an effective strategy to ensure sustained membership. Therefore, any intervention in promotion of FBSc should consider the characters’ and structure of social network and emphasis on indexed-based seed insurance and climate information services as strategy to promote seed producers cooperatives. Full article
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13 pages, 778 KiB  
Article
Linking Agricultural Index Insurance with Factors That Influence Maize Yield in Rain-Fed Smallholder Farming Systems
by Wonga Masiza, Johannes George Chirima, Hamisai Hamandawana, Ahmed Mukalazi Kalumba and Hezekiel Bheki Magagula
Sustainability 2021, 13(9), 5176; https://doi.org/10.3390/su13095176 - 6 May 2021
Cited by 11 | Viewed by 3566
Abstract
Weather extremes pose substantial threats to food security in areas where the main source of livelihood is rain-fed crop production. In most of these areas, agricultural index insurance (AII) is recognized as being capable of securitizing food production by providing safety nets against [...] Read more.
Weather extremes pose substantial threats to food security in areas where the main source of livelihood is rain-fed crop production. In most of these areas, agricultural index insurance (AII) is recognized as being capable of securitizing food production by providing safety nets against weather-induced crop losses. Unfortunately, however, AII does not indemnify farmers for non-weather-related crop losses. This study investigates how this gap can be filled by exploring strategies through which AII can be linked with non-weather factors that influence crop production. We do this by using an improvised variable ranking methodology to identify these factors in the O.R. Tambo District Municipality, South Africa. Results show that key agrometeorological variables comprising surface moisture content, growing degree-days, and precipitation influence maize yield even under optimal weather conditions, while seed variety, fertilizer application rate, soil pH, and ownership of machinery play an equally important role. This finding is important because it demonstrates that although AII focuses more on weather elements, there are non-weather variables that may expose farmers to production risk even under optimal weather conditions. As such, linking AII with critical non-weather, yield-determining factors can be a better risk management strategy. Full article
(This article belongs to the Section Sustainable Agriculture)
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