- Technology Guarantee Program: "How to improve the productivity of maize in Mexico"
The Mexican institution Fideicomisos Instituidos en Relación con la Agricultura (FIRA) will provide adequate risk management and improved productivity of maize producers through a Technological Guarantee Program (Programa de Garantías Tecnológicas, PGT). This innovative program combines three major components: investment financing, technical assistance for technological change and a basic income guarantee. In order to extract relevant policy lessons an impact evaluation of the program will be conducted by the MIT Poverty Action Lab team.
Participating institutions: Fidecomisos Instituidos en Relación a la Agricultura (FIRA) and MIT Poverty Action LAB.
Exposure to adverse weather is a factor that discourages long-term agricultural investment, creating conditions of vulnerability that threatens sustainable livelihoods, while limiting the development of other productive activities in rural areas. Using an insurance index, ENESA will establish a system of protection against drought in pastures in two regions of Chile. The index insurance is part of the priority guidelines of the Ministry of Agriculture of Chile and the results of the experience gained from this pilot program will facilitate decision-making on the general application of the model in the country and applying the acquired knowledge in using satellite images to other agricultural sectors for improving environmental management.
Participating institutions: Entidad Estatal de Seguros Agrarios (ENESA), Comité del Seguro Agrícola de Chile (COMSA), Agrupación Española de Entidades Aseguradoras, S.A. (AGROSEGURO), Laboratorio de teledetección de la Universidad de Valladolid and Instituto de Investigaciones Agropecuarias de Chile.
- Agricultural Price Volatility and Rural Bank Portfolios in Colombia
Public rural banks can address credit markets failures that affect a segment that other entities within the financial sector consider too risky. These banks are specialized by nature so they have less room for diversification of their loan portfolio and face all the inherent risks of the agriculture sector, especially those related to price volatility and weather events. Researchers at the University of Rosario will identify and quantify the effect of price volatility and weather events in the credit risk and the capital of the Agricultural Bank of Colombia.
The Centro de Investigaciones Económicas y Empresariales (CIEE) at Universidad Privada Boliviana in collaboration with Instituto Nacional del Seguro Agrícola (INSA) will design a pilot parametric weather index agricultural insurance, less expensive than insurance based on income in order to analyze the viability and financial self-sustainability of this initiative. The research will complement the efforts made from the Bolivian government to build protection mechanisms for farmers in the country and contribute to food security by helping to identify and measure the constraints and opportunities for private participation in agricultural insurance. This project is also supported by the MAP through the ESW program.
Participating institutions:Centro de Investigaciones Económicas y Empresariales (CIEE) de la Universidad Privada Boliviana (UPB).