Markets and trade

Customizing risk mitigation strategies and financial schemes

A farmer examines his bananas destroyed by a flood.©FAO/C. Shirley

A critical factor to enable smallholder farmers’ integration in modern value chain is their access to appropriate financial services and insurance mechanisms. As a starting point, FAO has conducted in depth appraisals of finance needs and household risk vulnerability, from weather to price variability and diseases.

Appraisals will help design financial and risk management schemes for the selected chains based on different household typologies, such as plot size, linkages with markets and risks faced. This information is essential for targeting interventions and for defining the role of policies in setting up financial schemes such as Index Based Insurance products or Warehouse Receipt Systems.

Activities in this area have been developed in the following regions:
Pacific and Caribbean regions

Risk management