KORE - Plateforme de partage des connaissances sur la résilience

Community Contingency Funds, an agricultural risk insurance for vulnerable households

Building resilience in disaster prone areas in Central America’s Dry Corridor

The most vulnerable part of Central America is the “Corredo Seco” (Dry Corridor), an area running across of El Salvador, Guatemala, Honduras and Nicaragua, which is characterized by very variable and extreme weather conditions: regular abnormal dry spells and droughts, and an increasingly irregular rainfall pattern causing landslides and flash floods. In three out of five harvest cycles, small farming families suffer significant losses and often their harvest is not enough to sustain household livelihoods and food security. This situation has the worst impact in Guatemala and Honduras, representing more than 50 percent of the subsistence farmers of the region. Through the financial support of the Belgian Government and with the collaboration of local and national Governments, FAO has strengthened the risk management capacities of subsistence farmers in Honduras and Guatemala. This enabled them to save, invest and protect their livelihoods through an innovative approach called the Community Contingency Funds (CCFs), which build farmers association resilience on three key dimensions: technical, financial and social.

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