While bundling drought-tolerant maize with index insurance generated significant drought resilience for small-scale farmers, seed and insurance companies need continued support to scale the product, particularly where farmers have little experience with either improved seeds or insurance.
AMA Innovation Lab researchers say losses from cyclone Idai in March, 2019 will have a lasting impact throughout Mozambique after the immediate relief effort has ended, particularly for those who rely on agriculture.
Small-scale farmers in developing economies worldwide may soon have better financial tools to manage the risk of drought with a new AMA Innovation Lab project using ultra-high resolution satellite data.
A study in Mozambique found that the main reason farmers did not use vouchers for inputs was a lack of cash for co-payments to purchase the seed-fertilizer package. This suggests a more generous initial subsidy could bring spur greater learning across a broader range of farmers.