The Role of Markets for Managing Agricultural Risks in Developing Countries

Hazell, Peter

doi:10.1057/9780230295018_17

Cited by 3 publications

(3 citation statements)

References 15 publications

(14 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This often leads to farmers not having the capacity to reinvest in the next season's production. And, quite significantly, farmers in developing countries have been the most affected by the occurrence of risks and uncertainties (Hazell, 2010). The financial impacts on the lives of the rural poor have been aggravated by systemic lapses, such as the absence of formal insurance, credit and deposit services (Miranda and Farrin, 2012).…”

Section: Related Literaturementioning

confidence: 99%

Adoption of crop insurance in Ghana: an application of the complementary log-log truncated Poisson double-hurdle model

Addey

Jatoe

Kwadzo

2020

AFR

View full text Add to dashboard Cite

PurposeThe aim of this paper is to identify the factors that influence rice farmers' decisions to adopt crop insurance and premium payments (willingness to pay [WTP] amounts). The paper also demonstrates the usefulness of the complementary log-log (cloglog) truncated Poisson double-hurdle model as an alternative hurdle model.Design/methodology/approachThe study first investigated the nature of the dependent variable, which had non-normal residuals and was overdispersed. The probit truncated normal regression double-hurdle model was tried but it failed the normality and homoscedasticity tests; hence, the cloglog truncated Poisson double-hurdle model was employed in the study.FindingsAn estimated 61% of respondents would purchase crop insurance, despite farmers not having prior experience with this product. Amongst others, the factors that influence insurance adoption amongst rice farmers are the share of rice in total income, reliability perception of crop insurance schemes and the probability of failure to achieve target yields. The latter helps the authors to address adverse selection, a central issue to the viability of such an insurance programme. The determinants of farmers' WTP are also identified.Research limitations/implicationsSampling was limited to farmers using irrigation and living in one region of Ghana, which may limit the study’s wider applicability.Originality/valueAs far as the authors are aware, this study is the first to select the appropriate hurdle model based on established properties of the dependent variable on this topic – crop insurance decisions.

show abstract

Section: Related Literaturementioning

confidence: 99%

Adoption of crop insurance in Ghana: an application of the complementary log-log truncated Poisson double-hurdle model

Addey

Jatoe

Kwadzo

2020

AFR

View full text Add to dashboard Cite

show abstract

“…By agricultural risks we mean that “everyday farming decisions of farmers affecting the farming operations cannot be accurately predicted because of several factors, this is the risk” (Kahan, 2008). In recent years, the risk has taken more detrimental forms like destroying whole crops, hurricanes, pests, fire and diseases (Hazell, 2010). New conceptual models are in the development process to expel extreme risks because of the weather in developing countries (McMichael et al , 2003).…”

Section: Introductionmentioning

confidence: 99%

Role of information and communication technology in mitigating risks in Indian agricultural supply chains

Shukla

Kapoor²,

Gupta³

et al. 2022

SCM

View full text Add to dashboard Cite

Purpose Theorising from a resource-based view perspective, the intersection of supply chain management and the use of information technology (IT) has been investigated in this study. This paper aims to investigate supply chain performance (SCP) as an essential outcome of the use of IT and explores the effect of supply chain collaboration (SCC) on SCP. In addition, volume uncertainty (VU) has been explored and tested to establish whether various associated uncertainties can be mitigated when the use of IT is involved. Design/methodology/approach A sample of 121 senior executives from agri-tech firms was collected by travelling and meeting the executives in person in various states of India. Structural equation modelling was used to test the hypothesized relationship of VU to SCP via the use of IT and SCC. Findings The results show that VU significantly impacts SCC via the use of IT and SCP via SCC. The use of IT positively and significantly impacts SCP via SCC. Practical implications Witnessing the potential benefits of the emerging use of IT in the uncertainty reduction as reported in this study, agri-tech firms operating in emerging rural and agricultural economies can enhance SCC to improve SCP. Social implications This study unfolds how risks in agricultural supply chains (ASCs) sourced because the VU can be mitigated through the use of IT and SCC to influence SCP in rural agricultural and developing economies. Originality/value VU at agri-tech firms and farmers is a ground reality that has led to an inability to plan and prepare, resulting in wastages and disruptions in ASCs and farmers’ struggles.

show abstract

“…Risk in agriculture is a major concern to farmers and policy makers in developing economies, where agriculture is the main source of livelihood, and contributes significantly to the overall economic growth of these countries (Hurley, ; Mandal, Rakshit, & Srkar, ). The concern arises from the impact risks have on farmers and economies as a whole (Cervantes‐Godoy & Kimura, ; Hazell, ; Vrolijk et al, ). Agricultural risks may come from weather variability, crop failure, price fluctuations, pests and disease outbreaks, poor health of farmers, institutional and regulatory failures, among others.…”

Section: Introductionmentioning

confidence: 99%

Are poultry farmers willing to insure their farms? Empirical evidence from Ghana

Dziwornu

Assefuah

2019

Manage Decis Econ

View full text Add to dashboard Cite

The inherent risks in poultry business require that farmers insure their farms to relief them when they occur. This paper investigated the willingness of poultry farmers to insure their farms, using probit model. Primary data were collected from 180 farmers in two regions of Ghana. The factors that are more likely to influence poultry farmers' decision to insure their farms are credit access, diversification of income, tying insurance to technology, subsidizing insurance premium, and designing insurance to suit risk. Poultry insurance should be designed to suit risk faced by farmers, subsidized by government, and bundled with credit for uptake.

show abstract

The Role of Markets for Managing Agricultural Risks in Developing Countries

Cited by 3 publications

References 15 publications

Adoption of crop insurance in Ghana: an application of the complementary log-log truncated Poisson double-hurdle model

Adoption of crop insurance in Ghana: an application of the complementary log-log truncated Poisson double-hurdle model

Role of information and communication technology in mitigating risks in Indian agricultural supply chains

Are poultry farmers willing to insure their farms? Empirical evidence from Ghana

Contact Info

Product

Resources

About