Colombia’s National Rice Growers Federation (Fedearroz) recently launched a pilot insurance project for 100 farmers in the Meta Region, which produces a sixth of all the rice in Colombia.
Developed by Adapting Agriculture to Climate Today, for Tomorrow Columbia World Project, the new type of insurance called index insurance provides payouts are based on an index of weather, such as rainfall measured by satellites or at a local weather station. Farmers automatically get compensated if the rainfall during critical stages of a crop’s growth cycle fails to reach a pre-specified threshold without having to file any claims.
This innovation has significantly lowered the transaction costs and risks for insurance companies leading to affordable premiums making coverage accessible to more farmers.
Read the full story at State of the Planet
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