Impacts of an innovative credit + insurance bundle for marginalized farmers: Evidence from a cluster randomized trial in Odisha, India

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dc.creatorKramer, Berber
dc.creatorPattnaik, Subhransu
dc.creatorWard, Patrick S.
dc.creatorXu, Yingchen
dc.date2024-10-31
dc.date2024-11-26T18:41:52Z
dc.date2024-11-26T18:41:52Z
dc.date.accessioned2026-06-27T15:05:27Z
dc.descriptionSmallholder farmers often lack documented land rights to serve as collateral for formal loans, with livelihoods inextricably linked to weather conditions. Resulting credit and risk constraints prevent them from investing in their farms. We implemented a randomized evaluation of KhetScore, an innovative credit scoring approach that uses remote sensing to unlock credit and insurance for smallholders including landless farmers in Odisha, a state in eastern India. In our treatment group, where we offered KhetScore loans and insurance, farmers - and especially women - were more likely to be insured and borrow from formal sources without substituting formal for informal loans. Despite increased borrowing, treated households faced less difficulty in repaying loans, suggesting that insured KhetScore loans transferred risk and eased the burden of repayment. Moreover, the treatment enhanced agricultural profitability by increasing revenues during the monsoon season and reducing costs in the dry season. Positive and significant effects are found among both farmers with unconstrained baseline credit access, and quantity rationed farmers, suggesting that KhetScore helps address supply-side credit constraints. Finally, the treatment significantly enhanced women’s empowerment and mental health. In conclusion, remote sensing-enabled financial products can substantially improve landless farmers’ access to agricultural credit, risk management, resilience, and well-being.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/162767
dc.identifier.urihttp://hdl.handle.net/123456789/94230
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.rightsOpen Access
dc.sourceKramer, Berber; Pattnaik, Subhransu; Ward, Patrick S.; and Xu, Yingchen. 2024. Impacts of an innovative credit + insurance bundle for marginalized farmers: Evidence from a cluster randomized trial in Odisha, India. IFPRI Discussion Paper 2288. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/162767
dc.subjectsmallholders
dc.subjectland rights
dc.subjectloans
dc.subjectlivelihoods
dc.subjectweather
dc.subjectcredit
dc.subjectremote sensing
dc.subjectaccess to finance
dc.subjectgender
dc.subjectimpact assessment
dc.subjectinsurance
dc.titleImpacts of an innovative credit + insurance bundle for marginalized farmers: Evidence from a cluster randomized trial in Odisha, India
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)