Crop Insurance as a Risk Management Strategy in Bangladesh

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Premimu ( Tk. /month) Premimu ( Tk. /month) Premimu ( Tk. /month) 600.00 500.00 400.00 300.00 200.00 100.00 Lalmonirhat 0.00 0 100000 200000 300000 400000 500000 600000 700000 800000 250 200 150 100 50 350 300 250 200 150 100 50 0 Income, Taka ( Per year) Pirojpur 0 0 10000 20000 30000 40000 50000 Income (Tk/ Per year) Sunamgonj 0 20000 40000 60000 80000 100000 120000 140000 Income ( Tk./Per year) Figure 6.18: Relationship between premium and income level 94
6.3 Farmer’s Views on Climatic Effects, Risk Mitigation and Crop Insurance: Focus Group Discussion (FGD) The research carried out discussions (FGDs) with the farmers groups in all the three study sites. Farmers described their own observations on the effects of climate change on agriculture (especially on cropping practices) in the recent years as opposed to their historical experiences. Because of the distinct nature of each field sites e.g. drought prone (Lalmonirhat), salinity prone (Pirojpur), and flood prone (Tahirpur) the nature and dimension of climatic effects as expressed by the farmers are different and so is the causes of risk. However, the common perception in all of them is that climate is changing and that change has already posed a significant risk to the agriculture as well as to their livelihoods. Therefore, all the groups feel the necessity to address such risk. The views and opinions of the groups from each study area on climatic risks and crop insurance scheme as coverage to such risk are summarized here: 6.3.1 FGD in Lalmonirhat: Farmers in this area believe that the climate is changing and temperature is rising day by day. These farmers, regardless of category (high, medium, and low), therefore, feel that crop production in the area is gradually reducing due to changed climatic conditions e.g. drought is causing disaster more frequently in the recent years than it used to do in the earlier decades. Due to such unfavorable climate and resultant soil conditions the production volume of many crops like Wheat and Mango has declined significantly. They are also observing that such changed climate are affecting the crop seasonality and cropping practices (pattern) e.g. Wheat producers are switching to Maize etc. Meanwhile, against such backdrops set by the climate-induced natural disaster, these farmers are not well aware of agricultural risk coverage. Moreover they are also not reliant on government bodies or local government agencies like agricultural department due to their insignificant cooperation after natural disasters. “Agricultural officer does not visit us and government does not take required initiative after disaster” as mentioned by a discussant. They, therefore, like the idea of adopting Crop Insurance scheme as a disaster risk mitigation measure upon clear understanding on the premium rate per acre, duration, and other related procedures. Notwithstanding adoption of such scheme, however, the farmers are suspicious of getting compensation after disaster (especially drought) from insurance company as an NGO earlier started such scheme in the area and lastly disappeared with the money without any notice. As a result now they suspect the very existence or authenticity of such companies and therefore they propose that if the policy is arranged by local bank they will have more confident to go with such scheme than with the NGOs. As far as the affordability of such CI policy concerns, extreme poor and marginal farmers would even fail to pay a premium of Tk. 50 per month while the middle and higher category farmers intend to buy it. The major concern of the majority of the farmers is that they badly need financial help after disaster. Many of them think that fertilizer is the much needed item for them as the fertilizer crisis is very common in the area. Since the price of the fertilizer is a great problem to them during their bad times the insurance money will help them in buying fertilizer to restart their cropping and recovering from disaster. 95
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Crop Insurance as a Risk Management
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Crop Insurance as a Risk Management
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Foreword The impacts of global warm
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ILO International Labor Organizatio
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3.6 Crop Insurance: some Terminolog
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Table 3.6 Advantages and challenges
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Figure 6.17 Organizational preferen
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Therefore, the main objective of th
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can be classified under different r
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National Reinsurance Scheme: The pu
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1.1 Statement of the Problem Chapte
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improving day by day and many of th
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Individual or area approach: To det
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Availability of Trained Personnel:
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FGD was mainly conducted among the
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outputs were critically analyzed an
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Comments specifically related to me
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Figure 3.1: Factors causing variati
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than ten times, while the global po
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Figure 3.8: Change in Palmer Drough
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yielding but drought resistant vari
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implement from the perspective of p
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Table 3.4: Present status of disast
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3.5 Limitation of Crop Insurance: P
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amount is measured by the extent of
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Contract (SUC). The premium rate fo
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Box 3.1: Examples of Parametric or
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Therefore, index products are a bit
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3.10 Crop Insurance Experience at D
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3.11.2 Canadian Experience Crop ins
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farmer was 150 percent of the crop
Page 68 and 69: segments of the population often en
Page 71 and 72: Chapter 4: Crop Insurance - Banglad
Page 73 and 74: development of insurance business i
Page 75 and 76: unanticipated catastrophic natural
Page 77 and 78: 1 st stage ……………………
Page 79 and 80: Taka 80,000.00 60,000.00 40,000.00
Page 81 and 82: and requirements of the insurance h
Page 83 and 84: Defining risk-reduction measures by
Page 85 and 86: Chapter 5: Climate Change and Agric
Page 87 and 88: 21 1990 CYCLONE 39 127 171099 24289
Page 89 and 90: ppmv of CO2 combined with a 4 0 C i
Page 91 and 92: Crop Damage fully ( acre) 4000000 3
Page 93 and 94: Table 5.5: Partial listing of cyclo
Page 95 and 96: Figure 5.7: Monthly mean temperatur
Page 97 and 98: magnitude or an intense or high mag
Page 99 and 100: Historical monthly values Mean Stan
Page 101 and 102: 6.1 Field Survey Chapter 6: Crop In
Page 103 and 104: Son of BoroBari now day labor (Curt
Page 105 and 106: Figure 6.4: Drought prone regions o
Page 107 and 108: Figure 6.7: Response to disaster al
Page 109 and 110: Figure 6.10: Agro-ecological sub-re
Page 111 and 112: season. Sunamgonj, as Haor region,
Page 113 and 114: % of farmer % of farmer % of farmer
Page 115 and 116: % of farmer % of farmer % of farmer
Page 117: % of farmer % of farmer % of farmer
Page 121 and 122: disastrous affect as such mode of l
Page 123 and 124: disbursement and Insurance Company
Page 125 and 126: Chapter 7: Summary Findings & Demon
Page 127 and 128: an incident occurred and farmers we
Page 129 and 130: Moral hazards: Theoretically moral
Page 131 and 132: duration of disaster is important h
Page 133 and 134: increased to 8.51% in 2003. Such a
Page 135 and 136: - Referring to crop growth models u
Page 137 and 138: data, for example, can establish an
Page 139 and 140: particular gauge station can be com
Page 141 and 142: Figure 7.6 Defined danger level by
Page 143 and 144: Methodology to develop an index in
Page 145 and 146: Structuring the Product Once the in
Page 147 and 148: did not cross the Weather Index val
Page 149 and 150: methodology, and applicability can
Page 151 and 152: References Anderson, J. (2001). Ris
Page 153 and 154: Linnerooth-Bayer, J., Mechler, R. a
Page 156: This document is produced by Climat
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Crop Insurance as a Risk Management Strategy in Bangladesh

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