In Tanzania, an experimental game found that a hybrid microloan with a 20% individual collateral increased individual effort and repayment for group loans while reducing the number of farmers who choose to borrow.
The AMA Innovation Lab is leading a pilot in Tanzania that bundles drought-tolerant maize with index insurance for seed replacement. Adoption rates and the effective triggering and distribution of in-kind payouts suggest this bundled approach could be successfully scaled more broadly.
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.
In a randomized controlled trial to study the impact of farmers’ knowledge about soil quality, we find that national-level fertilizer recommendations may be both unfit and excessively costly for many farmers.
Our results suggest that enforcement mechanisms can actually damage cooperative behavior as players shift from cooperative harvest strategies to more self-interested ones that lead to the collapse of the shared resource.
With new drought tolerant (DT) maize varieties ready to go to market, and with our growing knowledge of how to design effective insurance products for small-scale agriculture, now is an opportune moment to close this critical knowledge gap.