Agriculture remains a source of livelihood for almost half of humanity. It is also a source of growth for national economies, and can be a provider of investment opportunities for the private sector. However, millions of poor people face prospects of tragic crop failure or livestock mortality when, as a result of climate change, rainfall patterns shift or extreme events such as drought and floods become more frequent. Agricultural insurance is key in assisting farmers, herders, and governments lessen the negative financial impact of these adverse natural events.
Based on a unique survey of agricultural insurance programs in 65 advanced and emerging countries, we have pulled together collective knowledge and experiences to help policymakers promote sound agricultural insurance programs. The key objectives of the survey were to document international experience with public and private agricultural insurance in developed and developing economies and to examine the ways in which governments support agricultural insurance. The findings of the survey were used to make some recommendations for developing countries that plan to develop agricultural insurance.