Examining Underinvestment in Agriculture: Returns to Capital and Insurance Among Farmers

• What are the main constraints for farmers in making potentially profitable investments?
• How is rainfall insurance understood and received among farmers in Northern Ghana?
• Does a lack of capital prevent farmers from making potentially profitable investments?
• Are concerns about rainfall preventing farmers from making potentially profitable investments?

Partner organizations

Presbyterian Agricultural Service
Government of Ghana, Ministry of Food and Agriculture

Product

The TAKAYUA scheme is a rainfall insurance product with payouts triggered by drought (number of consecutive dry days) or excess rain (number of consecutive wet days) during the farming season.

To provide for a larger takeup during the pilot, no premium was charged during in 2009. A total of 249 policies were issued. In 2010, a premium of USD $0.65 will be charged.

Evaluation design

Experimental

Data Sources

• Administrative data
• Surveys: household surveys
• Observation

Sample size

502 in 2009, expanding to approximately 1000 in 2010

Project website(s)