Demand for Complementary Financial and Technological Tools for Managing Drought Risk

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dc.creatorWard, Patrick S.
dc.creatorSpielman, David J.
dc.creatorOrtega, David L.
dc.date2017-04-01T19:22:21Z
dc.date.accessioned2026-07-09T09:50:36Z
dc.descriptionFinancial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone areas. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently released drought-tolerant rice variety. We illustrate how these tools can independently address drought risk and demonstrate the additional benefits gained by combining them into a complementary risk management product. Findings indicate that farmers are generally unwilling to adopt the drought-tolerant variety independent of insurance, largely due to a yield penalty under non-drought conditions. When bundled with insurance, however, farmers’ valuation of the variety increases. Farmers value insurance on its own, but even more so when bundled with the drought-tolerant variety. The results provide evidence that farmers value the complementarities inherent in a well-calibrated bundle of risk management tools.
dc.identifierdoi:10.22004/ag.econ.211909
dc.identifierhttps://ageconsearch.umn.edu/record/211909/files/Ward-Demand%20for%20Complementary%20Financial%20and%20Technological%20Tools%20for%20Managing%20Drought%20Risk-404.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/211909
dc.identifier.urihttp://hdl.handle.net/123456789/612883
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/211909
dc.titleDemand for Complementary Financial and Technological Tools for Managing Drought Risk
dc.typeText

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