ROLE OF INSURANCE IN AGRICULTURAL LENDING
DOI:
https://doi.org/10.47604/ijfa.1602Keywords:
Insurance, Agricultural Sector, Risk, BorrowersAbstract
Purpose: This paper examines the role of insurance in providing loans for agricultural sector. There are many agricultural hazards that cannot be insured on a financially sound basis; nonetheless, there is room for enhanced insurance coverage of farm assets, of the life and health of individuals living in rural areas, and of certain specific dangers that affect crop and livestock production.
Methodology: A desktop literature review was used for this purpose. Relevant seminal references and journal articles for the study were identified using Google Scholar. The inclusion criteria entailed papers that were not over 5 years old.
Findings: The insurance framework in agricultural lending that has been presented calls for the participation of policymakers and implementers in addition to marketing channels and micro users. Agricultural insurance penetration based on the research of both the demand and supply side and it might be used as a tool for lowering the level of physical risk.
Unique Contribution to Theory, Policy and Practice: It is necessary to have experts, researchers, and extension agents step up their guidance and supervision efforts. Because it was difficult to discover a source of long-term funding or sponsorships, international and regional technical assistance, expertise, and financial support were urgently required.
Downloads
References
Ascui, F., & Cojoianu, T. (2019). Natural capital credit risk assessment in agricultural lending: an approach based on the natural capital protocol. Natural Capital Finance Alliance: Oxford, UK.
Boehlje, M. D. (2019). The emerging agricultural lending system. In Financing Agriculture into the Twenty-First Century (pp. 93-114). CRC Press.
Fang, L., Hu, R., Mao, H., & Chen, S. (2021). How crop insurance influences agricultural green total factor productivity: Evidence from Chinese farmers. Journal of Cleaner Production, 321, 128977
Hazell, P., & Varangis, P. (2020). Best practices for subsidizing agricultural insurance. Global Food Security, 25, 100326.
Kim, K. N., & Katchova, A. L. (2022). Agricultural bank acquisitions and postacquisition performance: An examination of the role of shared knowledge. Agribusiness.
List, G., Laszlo, S., & Coomes, O. T. (2020). Mitigating risk for floodplain agriculture in Amazonia: a role for index-based flood insurance. Climate and Development, 12(7), 649-663.
Lopulisa, C., Ramlan, A., & Suryani, I. (2018, May). The emerging roles of agricultural insurance and farmers cooperatives on sustainable rice productions in Indonesia. In IOP Conference Series: Earth and Environmental Science (Vol. 157, No. 1, p. 012070). IOP Publishing.
McIntosh, C., & Mansini, C. S. (2018). The use of financial technology in the agriculture sector.
Miranda Colon, X. (2022). Understanding Farmer Financing Preferences by Segmenting the Agricultural Lending Market (Doctoral dissertation, Purdue University Graduate School).
Ndegwa, M. K., Shee, A., Turvey, C. G., & You, L. (2020). Uptake of insurance-embedded credit in presence of credit rationing: evidence from a randomized controlled trial in Kenya. Agricultural Finance Review.
Onyiriuba, L., Okoro, E. O., & Ibe, G. I. (2020). Strategic government policies on agricultural financing in African emerging markets. Agricultural Finance Review, 80(4), 563-588.
Rozhkova, A. (2021, March). Features and problems of lending to agricultural enterprises. In IOP Conference Series: Earth and Environmental Science (Vol. 677, No. 2, p. 022045). IOP Publishing.
SAKHNO, A. A., POLISHCHUK, N. V., SALKOVA, I. Y., KUCHER, L. Y., & KUDYRKO, O. M. (2020). Mortgage lending system of agricultural enterprises of Ukraine. Revista Espacios, 41(15).
Shaikh, F. A., & Patil, S. L. (2019). Development of agricultural banks in India. International Journal of Management, IT and Engineering, 9(3), 203-212.
Shkodra, J., & Shkodra, L. (2018). Impact of agricultural finance in rural areas-case study Kosovo. Bulgarian Journal of Agricultural Science, 24(5), 737-741.
Svetlana, P., Irena, J., & Žaklina, S. (2018). The importance of bank credits for agricultural financing in Serbia. Економика пољопривреде, 65(1), 65-80.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Dr. Ben Kajwang PhD
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
