IDEAS home Printed from https://ideas.repec.org/a/ags/ijameu/329803.html
   My bibliography  Save this article

Analysing the Links Between Index-Based Crop Insurance Adoption and Agricultural Investments in Burundi

Author

Listed:
  • Ndagijimana, Marcien
  • Kessler, Aad
  • van Asseldonk, Marcel
  • Ndimubandi, Jean

Abstract

This paper analyses the links between index-based crop insurance (IBI) adoption and agricultural investments based on a cross-sectional sample of 40 crop insurance adopters and 40 non-adopters from two communes located in Gitega province in Burundi. Analysed agricultural investments variables included use of fertilizers, applying crop diversification, and use of land and crop management practices in the most recent year and in the year before IBI implementation started. The results from multivariate analysis indicate that adopters use 36% more chemical fertilizers and invest 18% more in chemical fertilizers than non-adopters (pp0.01). Adopters apply more land management practices also, in which they invest 15% more than non-adopters (pp0.01). Furthermore, adopters change crop management practices over time by 38% and their knowledge in crop management practices increased by 23% (pp0.01). Differences between adopters and non-adopters are however not statistically significant for crop diversification strategies and for the use of organic fertilizers. Hence, in order to be more effective and beneficial to farmers, other actions are also needed to encourage farmers to invest in their farm. Particularly promising in Burundi in this respect is to empower and train farmers by means of the Integrated Farm Planning approach, as well as to enhance farm inputs availability and to promote smart agri-entrepreneurial programs. In order to enhance agricultural development, the Burundi government should have a more prominent role in fostering farmers’ agricultural investments and in supporting IBI adoption.

Suggested Citation

  • Ndagijimana, Marcien & Kessler, Aad & van Asseldonk, Marcel & Ndimubandi, Jean, 2020. "Analysing the Links Between Index-Based Crop Insurance Adoption and Agricultural Investments in Burundi," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 9, October.
    • Handle: RePEc:ags:ijameu:329803
    DOI: 10.22004/ag.econ.329803
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/329803/files/doi_10.5836_ijam_2020-09-61.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.329803?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael R. CARTER & Alain de JANVRY & Elisabeth SADOULET & Alexandros SARRIS, 2014. "Index-based weather insurance for developing countries: A review of evidence and a set of propositions for up-scaling," Working Papers P111, FERDI.
    2. Eleanor Fisher & Jon Hellin & Helen Greatrex & Nathaniel Jensen, 2019. "Index insurance and climate risk management: Addressing social equity," Development Policy Review, Overseas Development Institute, vol. 37(5), pages 581-602, September.
    3. Jensen, Nathaniel D. & Mude, Andrew G. & Barrett, Christopher B., 2018. "How basis risk and spatiotemporal adverse selection influence demand for index insurance: Evidence from northern Kenya," Food Policy, Elsevier, vol. 74(C), pages 172-198.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rigo, Roberta & Santos, Paulo & Frontuto, Vito, 2022. "Landscape heterogeneity, basis risk and the feasibility of index insurance: An analysis of rice in upland regions of Southeast Asia," Food Policy, Elsevier, vol. 108(C).
    2. Mitchell Roznik & C. Brock Porth & Lysa Porth & Milton Boyd & Katerina Roznik, 2019. "Improving agricultural microinsurance by applying universal kriging and generalised additive models for interpolation of mean daily temperature," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(3), pages 446-480, July.
    3. Immanuel Lampe & Daniel Würtenberger, 2019. "Loss Aversion And The Demand For Index Insurance," Working Papers on Finance 1907, University of St. Gallen, School of Finance.
    4. Afriyie-Kraft, Lydia & Zabel, Astrid & Damnyag, Lawrence, 2020. "Index-based weather insurance for perennial crops: A case study on insurance supply and demand for cocoa farmers in Ghana," World Development Perspectives, Elsevier, vol. 20(C).
    5. Lampe, Immanuel & Würtenberger, Daniel, 2020. "Loss aversion and the demand for index insurance," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 678-693.
    6. Platteau, Jean-Philippe & De Bock, Ombeline & Gelade, Wouter, 2017. "The Demand for Microinsurance: A Literature Review," World Development, Elsevier, vol. 94(C), pages 139-156.
    7. King, Michael & Singh, Anuj Pratap, 2020. "Understanding farmers’ valuation of agricultural insurance: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    8. Duchoslav, Jan & van Asseldonk, Marcel, 2018. "Adoption and impact of credit-linked crop index insurance: a case study in Mali," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 120(2), August.
    9. Ceballos, Francisco, 2016. "Estimating spatial basis risk in rainfall index insurance: Methodology and application to excess rainfall insurance in Uruguay," IFPRI discussion papers 1595, International Food Policy Research Institute (IFPRI).
    10. Vigani, Mauro & Khafagy, Amr & Berry, Robert, 2024. "Public spending for agricultural risk management: Land use, regional welfare and intra-subsidy substitution," Food Policy, Elsevier, vol. 123(C).
    11. Quentin Stoeffler & Michael Carter & Catherine Guirkinger & Wouter Gelade, 2022. "The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso," The World Bank Economic Review, World Bank, vol. 36(1), pages 114-140.
    12. Enrico Biffis & Erik Chavez & Alexis Louaas & Pierre Picard, 2022. "Parametric insurance and technology adoption in developing countries," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 47(1), pages 7-44, March.
    13. Takahashi, Kazushi & Noritomo, Yuma & Ikegami, Munenobu & Jensen, Nathaniel D., 2020. "Understanding pastoralists’ dynamic insurance uptake decisions: Evidence from four-year panel data in Ethiopia," Food Policy, Elsevier, vol. 95(C).
    14. Phemelo Tamasiga & Helen Onyeaka & Adenike Akinsemolu & Malebogo Bakwena, 2023. "The Inter-Relationship between Climate Change, Inequality, Poverty and Food Security in Africa: A Bibliometric Review and Content Analysis Approach," Sustainability, MDPI, vol. 15(7), pages 1-35, March.
    15. Aheeyar, Mohamed & de Silva, Sanjiv & Senaratna Sellamuttu, Sonali & Arulingam, Indika, 2019. "Unpacking barriers to socially inclusive weather index insurance: towards a framework for inclusion," Papers published in Journals (Open Access), International Water Management Institute, pages 11(11):1-19.
    16. Kramer, Berber & Porter, Maria & Wassie Bizuayehu, Solomon, 2023. "Basis Risk, Social Comparison, Perceptions of Fairness and Demand for Insurance: A Field Experiment in Ethiopia," 2024 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2024, San Antonio, Texas 339075, Agricultural and Applied Economics Association.
    17. Van Campenhout, Bjorn, 2016. "Risk and Sustainable Crop Intensification," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246917, African Association of Agricultural Economists (AAAE).
    18. Carter, Michael R. & Cheng, Lan & Sarris, Alexandros, 2016. "Where and how index insurance can boost the adoption of improved agricultural technologies," Journal of Development Economics, Elsevier, vol. 118(C), pages 59-71.
    19. Shin, Soye & Magnan, Nicholas & Mullally, Conner & Janzen, Sarah, 2022. "Demand for Weather Index Insurance among Smallholder Farmers under Prospect Theory," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 82-104.
    20. Michael King & Anuj Pratab Singh, 2018. "Understanding farmers' valuation of agricultural insurance: Evidence from Vietnam," WIDER Working Paper Series wp-2018-93, World Institute for Development Economic Research (UNU-WIDER).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ijameu:329803. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.