Small farmer vulnerability and climate risk: Index insurance as a financial fix

Abstract

By its very nature, agriculture is a risky endeavor. Farmers not only face natural threats from pests, plant disease, and inclement weather, but many must also worry about fluctuating input costs, uncertain prices for their output, and, ultimately, their ability to repay debts and support their families. The growing incidence of extreme weather events and the rising volatility of agricultural commodity prices has greatly exacerbated the vulnerability of farmers since the turn of the century. This is especially the case for poor farmers in the global South who lack the assets and state protections that help to insulate their more fortunate counterparts.

Keywords

• financialization
• climate risk
• agrarian development
• farmer vulnerability