New Agricultural Insurance Data Have Been Reported by Investigators at Wageningen University (Why Agricultural Insurance May Slow Down Agricultural Development): Agriculture – Agricultural Insurance

2022 NOV 17 (NewsRx) -- By a News Reporter-Staff News Editor at Agriculture Daily -- Current study results on Agriculture - Agricultural Insurance have been published. According to news originating from Wageningen, Netherlands, by NewsRx correspondents, research stated, “How does agricultural insurance affect the modernization of farming in low income countries? We focus on institutional contexts without formal contract enforcement, where smallholders cannot access modern inputs via markets. Instead, farmers can engage in relational contracting with traders to sell their crop and gain access to inputs (as an advance in-kind payment).”

Our news journalists obtained a quote from the research from Wageningen University, “Although conventional theory assumes that insurance ‘crowds in’ modern inputs by attenuating investment risk, we demonstrate that insurance reduces the number of farmers receiving modern inputs from traders. Insurance also reduces the quantity of inputs that traders provide to farmers who remain in a relationship.”

According to the news editors, the research concluded: “Insurance may impede the uptake of modern inputs when institutions are imperfect.”

This research has been peer-reviewed.

For more information on this research see: Why Agricultural Insurance May Slow Down Agricultural Development. American Journal of Agricultural Economics, 2022. American Journal of Agricultural Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Oxford University Press - http://www.oup.com/; American Journal of Agricultural Economics - ajae.oxfordjournals.org)

The news correspondents report that additional information may be obtained from Erwin Bulte, Wageningen University, Dev Econ Grp, Wageningen, Netherlands.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/ajae.12353. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)