Why crop insurance and weather forecasting are related (D and C)

Development and Cooperation published an article on smallholder farmers in Africa face many risks – some of which are related to climate change. Specific weather forecasts and crop insurance can help reduce losses and improve food security. Combining both is particularly useful. Droughts, storms, and floods pose a threat to farmers around the world. But accurate weather forecasts can reduce the damage they cause. When farmers are forewarned, they can take appropriate action. Crop insurance can help reduce financial risks. So-called weather index insurances are an important instrument. The payout depends on previously determined weather data. “Farmers usually have to deal with a variety of risks,” says Claudia Ringler, deputy director in the Environment and Production Technology Division. These include pests, increases in the price of inputs, health problems or deaths in the family. However, insurance only covers clearly defined weather events. According to Ringler, index insurance must be linked to risk management on other levels.