A randomized controlled trial (RCT) in Burkina Faso showed that farmers who purchased insurance made significantly more investments for higher future income despite implementation challenges, adding evidence for the high potential of agricultural index insurance for development.
An RCT in Burkina Faso has found that nuclear households invested more labor than extended-family households in a labor-intensive but more productive technique for applying fertilizer to sorghum crops. These results could have implications for targeting agricultural innovations.
The typical challenges of basis risk and low uptake have plagued index insurance products for years, but AMA Innovation Lab researchers are crafting solutions by designing innovations around the structure of the insurance contracts.
The results from the first sales period in Mali indicated that those farmers who purchased the insurance were more likely to expand their cotton cultivation, increase use of productive inputs and increase the use of seeds.