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Impact of Weather Insurance on Small Scale Farmers: A Natural Experiment

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  • Ibanez, Marcela
  • Dietrich, Stephan

Abstract

This paper explores the impacts of traditional agricultural insurance that offers protection against climatic shocks on small-scale tobacco farmers in Colombia after a period of substantial crop failures. Our identi cation strategy bene ts from a natural experimental setup of the form in which the insurance was launched. We fnd that tobacco producers with access to the insurance program were less likely to acquire informal loans, were less likely to use loans to repay debts, and had access to loans with lower interest rates and longer maturation periods. Moreover, access to this program was positively associated with increased savings and accumulation of liquid assets.

Suggested Citation

  • Ibanez, Marcela & Dietrich, Stephan, 2015. "Impact of Weather Insurance on Small Scale Farmers: A Natural Experiment," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112887, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:112887
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    Cited by:

    1. Stephan Dietrich, 2017. "Coping with Shocks: Impact of Insurance Payouts on Small-Scale Farmers," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 42(2), pages 348-369, April.

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    More about this item

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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