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The challenge of making climate adaptation profitable for farmers – Evidence from Sri Lanka’s rice sector












Bandara, S., Ignaciuk, S., Hewage, A., Kwon, J., Munaweera, T., Scognamillo, A. & Sitko, N. 2021. The challenge of making climate adaptation profitable for farmers: evidence from Sri Lanka’s rice sector. FAO Agricultural Development Economics Working Paper 21-01. Rome, FAO.




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    Adapting to high temperatures: evidence on the impacts of sustainable agricultural practices in Uganda 2021
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    Rising temperatures due to climate change pose a significant threat to agricultural systems and the livelihoods of farmers across the globe. Identifying farm management strategies that reduce sensitivity to high temperatures is, therefore, critical for moderating the adverse effects of climate change. In this paper, we use spatially granular climate data merged with four waves of household survey data in Uganda to examine empirically the relationships between high temperatures, agricultural production outcomes, and the adoption (including its duration) of three sustainable agricultural practices (organic fertilizer adoption, banana-coffee intercropping and cereal-legume intercropping). We do this using a fixed-effect model, with instrumental variables to address potential endogeneity issues. Our findings indicate that, while exposure to high temperature does reduce farmers’ crop income, the adoption of these practices can offset the negative impact of high temperatures on such income. Indeed, we show that the benefits of adopting these practices on the total value of crop production increases monotonically astemperatures increase from their long-term averages. Moreover, the number of years a farmer adopts a practice is associated with higher total value of crop production, and this relationship holds across the full distribution of observed high temperature deviations. Taken together, the results suggest that organic fertilizer adoption, banana-coffee intercropping and cereal-legume intercropping are effective options to adapt to rising temperatures in Uganda, and these benefits increase with the duration of adoption. Adaptation policies and programmes must therefore be designed in ways that help farmers overcome initial barriers to adoption of these practices, as well as to support farmers to sustain adoption over time. This may require longer term funding horizons for adaptation programmes, and innovative support mechanisms to incentivize sustained adoption.
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    Climate variability, adaptation strategies and food security in Malawi 2014
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    This paper assesses farmers’ incentives and conditioning factors that hinder or promote adaptation strategies and evaluates its impact on crop productivity by utilizing household level data collected in 2011 from nationally representative sample households in Malawi. We distinguish between (i) exposure to climatic disruptions, (ii) bio-physical sensitivity to such disruptions, (iii) household adaptive capacity in terms of farmers’ ability to prepare and adjust to the resulting stress, and, fina lly, (iv) system-level adaptive capacity that serve as enabling factors for household-level adaptation. We employ a multivariate probit (MVP) and instrumental variable technique to model farming practice selection decisions and their yield impact estimates. We find that exposure to delayed onset of rainfall and greater climate variability as represented by the coefficient of variation of rainfall and temperature is positively associated with the choice of risk-reducing agricultural practices suc h as tree planting, legume intercropping, and soil and water conservation (SWC); however, it reduces the use of inputs (such as inorganic fertilizer) whose risk reduction benefits are uncertain. Biophysical sensitivity of plots increases the likelihood of choice of tree planting and SWC. In terms of household adaptive capacity, we find that wealthier households are more likely to adopt both modern and sustainable land management (SLM) inputs; and are more likely to adopt SLM inputs on plots unde r more secure tenure. In terms of system-level adaptive capacity, results show the key role of rural institutions, social capital and supply-side constraints in governing selection decisions for all practices considered, but particularly for tree planting and both organic and inorganic fertilizer. Finally for productivity, we find that on average use of both modern and SLM practices have positive and statistically significant impact on productivity of maize. For SLM practices that also respond t o exposure and sensitivity, these results provide direct evidence of their potential to aide households in adapting to further climate change. Results presented have implications for understanding and overcoming barriers to selection for each practice, distinguishing structural aspects such as exposure and sensitivity from potential interventions at the household or systemic levels linked to adaptive capacity.
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    Climate Change, Food Security and Insurance Systems for Family Farming
    Brazil case: Climate, income and price insurance programs.
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    Family Farming Insurance Disasters resulting from weather changes cause the greatest economic impacts on the region (70% of emergencies are weather-related). Annual costs of approximately 2.2% of the GDP (base year 2010) are estimated to face disasters, in lack of climate change adaptation actions. The global climate risk index estimated based on information from 1995 to 2014, indicates that 4 out of the 10 countries with the highest risk index are in Latin America and the Caribbean: Honduras, H aiti, Nicaragua and Guatemala. In the region, one third of the population lives in high risk zones due to exposure to geological and hydro-meteorological threats. Climate change is also increasing the dispersal area of plant and animal plagues and diseases, in addition to increasing the probability of outbreaks and intensified effects. Through the enactment of Law 5,969 of 1973, Brazil established the Agricultural and Livestock Activity Guarantee Program (PROAGRO) to protect farmers from rural loan obligations. In 2004, it created “PROAGRO Mais”, for producers associated to the National Program for the Strengthening of Family Farming (PRONAF). Currently, PROAGRO protects medium-sized farmers (PRONAMP), and PROAGRO Mais protects PRONAF beneficiaries. PROAGRO Mais guarantees, in cost operations, up to 80% of the expected gross income, covering financing and up to R$ 20 thousand of the estimated net income; and for investment operations, coverage limit is 95% of the expected gross inco me, deducting the coverage by cost operations. In cost operations, PRONAF beneficiary participation is mandatory, while in investment operations, it is optional. Harvest Guarantee In Latin America and the Caribbean, family farming is very important for the food security and nutrition of all population. Approximately 81% of agricultural endeavours correspond to family farmers and, depending on the country, they provide 27% to 67% of the food. Family farming generates 57% to 77% of agricultural j obs in the region, so its is a very important job-generation sector. To continue boosting food security and sustainable development, family farming has three important challenges: 1) to produce more assorted and nutritional foods, 2) to continue creating safer and more stable jobs, and 3) to favour the appropriate use of resources used in production. Harvest Guarantee is a program that supports family farmers below the poverty line, with emphasis on the Brazilian Semiarid Zone, where losses due to drought are frequent. It was established by Law 10,420, of April 10, 2002. Price Guarantee for Family Farming This is a Federal Government program that offers the family farmer with PRONAF loan, a protection against price reductions. Currently, 51 products have a guarantee price. Rural population in the region lives in an extremely precarious situation because the poorest population plus the population in economic vulnerability situation correspond to 80% of the total rural population. Many family farmers in this percentage have their livelihoods depending greatly on environmental factors and natural resources.

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