An Analysis of the Potential Costs and Benefits of Yield and Minimum Whole Farm Net Income Insurance to Rural Agricultural Households in Ethiopia

30 Pages Posted: 9 Oct 2017

See all articles by Karalyn Eaves

Karalyn Eaves

Texas Tech University, College of Agricultural Sciences and Natural Resources, Department of Agricultural and Applied Economics, Students

Darren Hudson

Texas Tech University

Chenggang Wang

Texas Tech University - Department of Agricultural and Applied Economics

Conrad Lyford

Texas Tech University

Date Written: October 9, 2017

Abstract

Food insecurity, poverty, and risk affect people’s well-being around the world on a daily basis. This research looks specifically at agricultural producing households in rural Northwestern Ethiopia and how yield insurance and minimum income insurance would impact household welfare. The impacts of yield insurance and minimum income insurance is examined to determine the impact of alternative risk mitigation options on household welfare and program cost. Additionally, the viability of the insurance programs for the Ethiopian government is considered. It was found that an approach that focused on income protection rather that crop insurance was more cost effective in providing desired household wealth. This research has the potential to assist governments in developing countries in providing public sector insurance programs for subsistence agricultural households.

Keywords: Yield Insurance, Minimum Income Insurance, Ethiopia, Household Production, Simulation

JEL Classification: D13, D22, F63, 013, 055, Q12

Suggested Citation

Eaves, Karalyn and Hudson, Darren and Wang, Chenggang and Lyford, Conrad, An Analysis of the Potential Costs and Benefits of Yield and Minimum Whole Farm Net Income Insurance to Rural Agricultural Households in Ethiopia (October 9, 2017). Available at SSRN: https://ssrn.com/abstract=3049972 or http://dx.doi.org/10.2139/ssrn.3049972

Karalyn Eaves

Texas Tech University, College of Agricultural Sciences and Natural Resources, Department of Agricultural and Applied Economics, Students ( email )

Box 42132
Lubbock, TX 79409-2132
United States

Darren Hudson (Contact Author)

Texas Tech University ( email )

Box 42132
Lubbock, TX 79409-2132
United States

Chenggang Wang

Texas Tech University - Department of Agricultural and Applied Economics ( email )

Box 42132
Lubbock, TX 79409-2132
United States

Conrad Lyford

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

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