Reports on Risk Management from ICAR-National Institute of Agricultural Economics and Policy Research Provide New Insights (Effectiveness of Farmers’ Risk Management Strategies In Smallholder Agriculture: Evidence From India): Risk Management

2022 JAN 10 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Risk Management. According to news originating from New Delhi, India, by NewsRx correspondents, research stated, “Smallholder farmers in developing countries are more vulnerable to climate risks, and most of them, because of a lack of access to institutional risk management measures such as crop insurance, rely on traditional measures to offset the adverse effects of such risks on agricultural production. Employing a multinomial endogenous switching regression technique to the farm-level data, this study first identifies the determinants of farmers’ own risk management measures and then evaluates their impacts on farm income and downside risk exposure.”

Financial support for this research came from Indian Council of Agricultural Research under the National Professorial Chair scheme.

Our news journalists obtained a quote from the research from the ICAR-National Institute of Agricultural Economics and Policy Research, “There are three key highlights of this analysis. One, farmers, based on their past exposures to climate risks, endowments of resources, and access to credit and information, often use more than one measure or strategy to mitigate, transfer, and cope with the climate risks. Two, all the risk management strategies are found to be effective in improving farm income and reducing risk exposure, but it is their joint implementation that yields larger payoffs. Three, the joint adoption of different adaptation strategies is positively associated with farm size, but with liquidity and information constraints relaxed, the probability of their joint adoption is expected to increase further.”

According to the news editors, the research concluded: “These findings impinge on the concept of climate-smart agriculture and suggest the need to identify and integrate traditional farm management practices with science-based innovations to provide an effective solution to climate risks.”

This research has been peer-reviewed.

For more information on this research see: Effectiveness of Farmers’ Risk Management Strategies In Smallholder Agriculture: Evidence From India. Climatic Change, 2021;169. Climatic Change can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Climatic Change - http://www.springerlink.com/content/0165-0009/)

The news correspondents report that additional information may be obtained from Pratap S. Birthal, ICAR-National Institute of Agricultural Economics and Policy Research, New Delhi 110012, India. Additional authors for this research include Jaweriah Hazrana and Digvijay S. Negi.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s10584-021-03271-1. 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.

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