Protecting Small Farms in Mozambique From Drought – By Alex Russell on April 22, 2019
“Salient Risks and Contract Quality: Estimating Demand for Index Insurance in Mozambique and Tanzania”. Agricultural & Applied Economics Association Annual Meeting, Kansas City, MO. 2020.
As index insurance products become more prevalent, attention is quickly turning to the quality of the protection that they offer. Farmers, insurance providers, and researchers alike are aware that low quality insurance products are not insurance products at all. Rather, they transfer income from bad periods to good periods. High quality index insurance products must reliably track farmer experiences, cover appropriate risks, and deliver real value in a timely fashion.
In this project, we dig deeper into both self-reported and revealed willingness to pay for DTM and Index Insurance, with particular attention to a farmer’s recent drought experience and her perceptions of contract quality.
This event brought together AMA Innovation Lab researchers and leaders on agricultural index insurance from industry and governments from Mozambique and other nations to discuss the state of index insurance and its future for development in the region.
Jonathan Malacarne was one of 17 students from the Department of Agricultural and Natural Resource Economics at UC Davis to present at this year’s meeting of the Agricultural & Applied Economics Association (AAEA).
PacDev—The Pacific Conference on Development Economics—is an annual conference for research on the economics of developing countries. This research often focuses on poverty, inequality, small-scale agriculture, globalization and trade.
“SOE Faculty Member Jonathan Malacarne and SOE graduate student Shelby Smith are part of a new research project focused on value-added grains. Led by researchers at Cornell University and funded by a $2 million USDA Award, the multi-institutional project team will focus on developing infrastructure to establish markets for organic grains in the Northeast and Midwest. Jonathan and Shelby will be leading the economic side of the project, which involves supply chain mapping, studying the role of institutional markets in supporting a value-added organic grains economy, and identifying challenges in getting organic grains to consumers at prices they’re willing to pay. They are excited to collaborate with colleagues from UMaine, including Ellen Mallory of UMaine Cooperative Extension, researchers and students from Cornell University, University of Vermont, the University of Wisconsin, the University of Maine, the University of Illinois, Oregon State University and South Dakota State University, as well as agricultural stakeholders. Congratulations Jonathan & Shelby ! We look forward to learning from you and the entire multi-institutional research team.”
This project explores the determinants of uptake and measure the impacts on on-farm investment levels and nutritional outcomes of drought-tolerant (DT) maize varieties — both alone and bundled with a complementary insurance product that kicks in and stabilizes farmer income at those higher drought pressure levels where DT varieties lose their efficacy.
Update: On Thursday, March 14, 2019, Cyclone Idai slammed into the coast of south eastern Africa near the port city of Beira, Mozambique. Early reports suggest that over 1.5 million people in Mozambique, Malawi, and Zimbabwe will be affected. Read what Jonathan and other AMA Researchers have to say about it here.
Jonathan Malacarne was a recipient of the prestigious Provost’s Dissertation-Year Fellowship in the Arts, Humanities and Social Sciences for 2017-18.