The%20Impact%20of%20Receiving%20Price%20and%20Climate%20Information%20in%20the%20Agricultural%20Sector

Working Papers

The Impact of Receiving Price and Climate Information in the Agricultural Sector


CODE: IDB-WP-220
AUTHOR(s): Camacho, Adriana , Conover, Emily
PUBLISHED: May 2011
LANGUAGE: English
RELATED TOPICS: Poverty Reduction and Labor
DOWNLOAD FILE IN: English

Abstract:

Previous studies indicate that Colombian farmers make production decisions based on informal sources of information, such as family and neighbors or tradition. In this paper we randomize recipients of price and weather information using text messages (SMS technology). We find that relative to those farmers who did not receive SMS information, the farmers who did were more likely to provide market price information, had a narrower dispersion in the expected price of their crops, and had a significant reduction in crop loss. Farmers also report that text messages provide useful information, especially in regards to sale prices. We do not find, however, a significant difference between the treated and untreated farmers in the actual sale price, nor changes in farmers’ revenues or household expenditures.

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