Linking Agricultural Index Insurance with Factors That Influence Maize Yield in Rain-Fed Smallholder Farming Systems

Wonga Masiza, Johannes George Chirima, Hamisai Hamandawana, Ahmed Mukalazi Kalumba and Hezekiel Bheki Magagula
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Wonga Masiza: Department of Geography and Environmental Science, University of Fort Hare, Alice 5700, South Africa
Johannes George Chirima: Agricultural Research Council-Institute for Soil, Climate and Water, Pretoria 0001, South Africa
Hamisai Hamandawana: Department of Geography, Bindura University of Science Education, 741 Chimurenga Road, Bindura 7999, Zimbabwe
Ahmed Mukalazi Kalumba: Department of Geography and Environmental Science, University of Fort Hare, Alice 5700, South Africa
Hezekiel Bheki Magagula: Department of Geography and Environmental Science, University of Fort Hare, Alice 5700, South Africa

Sustainability, 2021, vol. 13, issue 9, 1-13

Abstract: Weather extremes pose substantial threats to food security in areas where the main source of livelihood is rain-fed crop production. In most of these areas, agricultural index insurance (AII) is recognized as being capable of securitizing food production by providing safety nets against weather-induced crop losses. Unfortunately, however, AII does not indemnify farmers for non-weather-related crop losses. This study investigates how this gap can be filled by exploring strategies through which AII can be linked with non-weather factors that influence crop production. We do this by using an improvised variable ranking methodology to identify these factors in the O.R. Tambo District Municipality, South Africa. Results show that key agrometeorological variables comprising surface moisture content, growing degree-days, and precipitation influence maize yield even under optimal weather conditions, while seed variety, fertilizer application rate, soil pH, and ownership of machinery play an equally important role. This finding is important because it demonstrates that although AII focuses more on weather elements, there are non-weather variables that may expose farmers to production risk even under optimal weather conditions. As such, linking AII with critical non-weather, yield-determining factors can be a better risk management strategy.

Keywords: agricultural insurance; bundling; crop yield; risk management; variable importance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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