Crop Price Insurance for Farmers in Ghana

• What is the impact of access to crop microinsurance?
• What mix of financial services gives the greatest impact?

Partner organizations

Mumuadu Rural Bank Limited (MRB) is a Community Development Financial Institution. The Government of Ghana introduced the rural banking concept in the early 1970s to offer financial intermediation to rural areas where financial services to the poor was non-existent. MRB was established in 1982 to provide services to the Mumuadu rural community. MRB currently operates six branches throughout the Eastern Region of Ghana.

Product

Bundled with a loan product, this crop microinsurance product covers half the loan amount and all of its interest when crop prices fall below a certain level. This product was piloted for at no cost to 84 farmers.

Evaluation design

Experimental

Data Sources:

• Household surveys: Bank employees will administer a baseline survey to obtain information on level of education, farm-related plans and expenses, credit history, risk perception & aversion, ambiguity aversion, level of trust in banks, and financial management skills. A follow-up survey will be conducted after 3 crop cycles, to determine the impact of credit on households and farm outputs, the effect the product had on farmers' decision to take a loan, and the impact financial trainings had on outcomes and decision-making.
• Administrative data: take-up of loans and repayment rates will be tracked over time using the bank's data

Sample size: 84 farmers

Project website(s)