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Agricultural Insurance in Latin America: Where Are We?

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Publication date
20/07/2005
Number of Pages
19
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Latin America & the Caribbean
Focus Topic:
Market / Trade
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Author
Mark Wenner, Diego Arias
Organization
University of Wisconsin-Madison BASIS, World Council of Credit Unions, Inc.

Risk is an unavoidable, but manageable, element in the business of agricultural production and marketing. Agricultural production can vary widely from year to year due to unforeseen weather, disease/pest infestations, and/or market conditions causing wide swings in yields and commodity prices. This paper reviews the weaknesses of traditional crop insurance programs and highlights new developments, especially as they regard Latin America, that hold promise of making agricultural insurance more accessible, more efficient, and more sustainable.