Although much research has been done on the integration of small producers within value chains, important gaps exist in the analysis of its impact on the distribution of risk along the chain. Therefore, FAO commissioned a paper to inform research on the mechanisms and policies for risk mitigation that can be used within agricultural and food value chain contexts with a focus on small producers in developing countries.
Based on a review of experiences with agricultural insurances, a discussion paper was prepared. It explores the extent to which insurances can be employed in developing countries as market based risk management tools to promote investment and improvements in agricultural productivity. The paper focuses on the role that public support should play and is in fact playing in the agricultural insurance market.
