E-Workshop Recap: Agricultural risk management with FAO and ILO

FAO Photo 2

Photo courtesy of FAO

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Last week, we had a in-depth conversation with Patricia Richter and Pranav Prashad of ILO and Emilio Hernandez of FAO about the risks and challenges facing small holder and subsitence farmers. The conversation delved into key tools and strategies for better delivering crucial, risk-reducing tools to those working in agriculture. Access the presentation.

We wanted to share some final thoughts from the presenters and also post here, as promised, links to the materials shown or referenced in the session.

FAO presenter Emilio Hernandez shared these materials for greater depth, saying:

We have a data base of training material FAO and its partners have developed for many years. It is a knowledge hub specifically for rural and agricultural finance.

In the database

Final insights from ILO impact studies in Ghana and China:

Insurance has a productive impact too, in addition to being a protective tool. In agriculture, studies in Ghana and China (my slide 2), have shown higher investments and outputs. In Ghana insured farmers increased investment in fertilizers (and better seeds) by 24% and increased cultivated area by over 15%. Similarly in China, insurance led to 27% higher investments in cross bred pigs among policy holders.

On the protective side, insured pastoralists (livestock insurance) in Kenya showed lower reliance on burdensome coping strategies such as “desperate” sales of livestock in case drought (down 29%). Similar results have been seen in case for indebtedness and keeping children in school / preventing them from working in fields when their health risks are covered through insurance.

For more on this, see http://www.impactinsurance.org/publications/rp35.

Resources from ILO include:

Additional ILO Rural Capacity Building tools:

Title of product Description Type
Empowering rural communities through financial inclusion Policy brief on financial inclusion for rural communities. Policy advise
Protecting the Poor: A Microinsurance compendium. Vol. II Contains chapters on climate change, next-generation index insurance for smallholder farmers, livestock insurance. Knowledge product
Making insurance work for microfinance institutions: a technical guide to developing microinsurancePathways towards greater impact: Better microinsurance models, products and processes for MFIs Guide for MFI managers on the design and operation of basic insurance products. Introduces fundamental insurance concepts, outlines the prerequisites needed for an MFI and describes the key features of five types of insurance products.Based on the experiences of innovative microfinance institutions (MFIs), it is clear that they can provide risk-management services that are valuable for clients and MFIs alike. The paper provides a comprehensive review of the challenges and successes of MFIs and offers ten key recommendations. Knowledge product
Financial Education: Trainers’ Manuals A series of training materials designed to teach vulnerable groups – including women and men in poverty, families with working children, youth and migrant workers – financial knowledge and management skills. Training Tool
Making Microfinance Work: Rural Microfinance A chapter and stand-alone course (in development) in the MFI management training programme “Making Microfinance Work: Managing Product Diversification” Training Tool
Village Banking and the Ledger Guide Practical tool for strengthening village banks as a means of giving poor women and men in rural and often remote areas access to financial services (savings and credit), social empowerment and a higher quality of life. Training Tool
Rural Academy: Decent Work in the Rural Economy 2-week training event with a 3-day elective on rural finance. Training Course