In all parts of the world, farmers face myriad risks. Not only do farmers face the same risks that we all face — disability, health crisis, etc. — but the additional risks of being dependent on external factors like the weather for their livelihoods. In Bangladesh those risks are magnified...

In many developing countries, microfinance institutions (MFIs) are well established throughout rural areas, with high functioning savings groups already in existence. These groups of about 15-30 members usually meet monthly and give small savings contributions that are required at each meeting....

Increasing access to credit can spur the adoption of more productive technologies, but may require reducing risk for both smallholder farmer and lender. In a randomized controlled trial (RCT), we investigated how drought index insurance coupled with agricultural loans impacts the agricultural...

Ecuador and several other Andean countries have prioritized the establishment and strengthening of agricultural insurance markets for smallholder farmers at risk of poverty. At the request of the Ecuadorian government, we recently explored whether index insurance would more effectively protect...

Risk management and resilience are becoming a focus for how to support and empower agricultural households who are vulnerable to weather-related shocks. Index insurance has shown tremendous promise where conventional agricultural insurance is not possible or cost-effective, but this promise can...

An agricultural index insurance contract’s quality is hidden. On its surface, farmers considering a policy or national governments seeking to subsidize coverage have no way to know whether a product has the potential to provide real value. 

In an experimental game in Tanzania, we tested how a small individual collateral requirement would affect the decision to borrow and individual effort under a group loan. A 20-percent collateral increased individual effort and repayment while reducing the number of farmers who take loans. The...

Livestock—the principal store of wealth and source of livelihood for pastoralists living in the arid and semi-arid lands (ASAL) of the Horn of Africa— face tremendous risk from the frequent and catastrophic droughts that plague the region.

Catastrophic weather shocks, such as severe drought or flood, are an important cause of poverty among rural households in developing economies. As the risk of these shocks is forecasted to increase, national social protection budgets will struggle to keep up with the number of households in need...

Households in developing rural economies face a multitude of risks. When financial alternatives are limited, in the face of disaster, households typically turn to two coping strategies: reduction of assets to smooth consumption, or reduction of consumption to protect assets. Both of these...