P K Joshi. Farmers Preferences for Climate Smart Agriculture and Willingness to Pay

Transcription

1 Farmers Preferences for Climate Smart Agriculture and Willingness to Pay P K Joshi International Food Policy Research Institute South Asia Regional Office, New Delhi, India

2 Outline 1. Climate smart agriculture 2. Indicators for farmers choices 3. Farmers preferences and willingness to pay 4. Agricultural insurance and solar pumps 5. Way forward

3 Concept of climate smart agriculture (Source: Aggarwal 2010) Policy smart Knowledge smart Weather smart Nitrogen smart Climate Smart Carbon smart Water smart Energy smart Climate smart interventions (FAO) Adapting/mitigating climate change Ensure reducing the risk arising due to climate change Augmenting farm income. Triple wins (World Bank) Higher yields, more carbon sequestration, and greater resilience to heat and drought Feasible interventions Resource endowments Capacity indicators

4 Four broad components Technologies Institutions Insurance Value-added information International Food Policy Research Institute

5 Indicators for farmers choices for prioritization Indicator Efficiency Equity Gender Sustainability of natural resources Environmental services Proxy indicator Crop yield Benefit-cost ratio Unit cost of production Employment generation Additional calorie produced Female participation Nitrogen use efficiency Water use efficiency Energy use efficiency Green house gas emission Carbon sequestration

6 Selected interventions Nitrogen smart Site specific nutrient management; manuring; leaf colour chart Water smart Water conservation; SRI; alternate dry & wet; precision water application; laser land levelling; stress tolerant varieties Energy smart Direct seeded rice; Carbon smart Green manuring; organic farming Weather smart Insurance; weather forecasting Knowledge smart Intensive agriculture; advisory services Policy smart Prices; markets, procurement, trade

7 Location of the study

8 Composite indices of various interventions: rice

9 Farmers preferences to climate smart agriculture Eastern IGP Western IGP

10 High preference intervention: wheat Rank Eastern IGP Ran k Westen IGP 1 Laser land leveling 1 Laser Land leveling 2 Zero tillage 2 Zero tillage 3 Weather advisory 3 Irrigation scheduling 4 Irrigation scheduling 4 INM 5 Nutrient management 5 Weather advisory 6 Crop insurance 6 Crop insurance

11 Coping strategies before and during drought Drought before sowing Income diversification Crop diversification Intercropping Advance crop planning Groundwater management Drought during or after sowing Reduced food expenditure Credit for consumption Low key social function Mutual aids Migration Agricultural insurance, drought tolerant varieties and savings were the main choices to manage drought.

12 Community insurance: Farmers satisfaction activities High satisfaction activities Social mobilization & group formation Members engagement in assessment processes Engagement of members for product design Medium satisfaction activities Premium amount Grievance redressed Yield assessment process Low satisfaction activities Claim payment and amount of benefit receive

13 Solar as drought coping strategy Wheat crop Benefits: 2013 drought year 100% transplanting by 31 August; non-solar areas only 27% Irrigation cost for nursery preparation & maintenance Solar farmers 186 Rs/ha Non-solar farmers 451 Rs/ha 57% solar farmers took summer crops compared to 28% non-solar Revive 5558 public TWs Cost: Rs 667 million Benefits: Rs 2330 million B/C ratio: 3.50 Pay-back period: 3-4 years Effective strategy drought proofing IFPRI/Badiane International Food Policy Research Institute

14 Way forward Incentivize technology adoption through financing or insurance instruments Minimize risks and uncertainty through promoting insurance and solar system Strengthen institutional capacity for technology dissemination Promote custom-hire service for farm machinery Link climate smart interventions with government programs

15 Climate smart agriculture for food and nutrition security Thank you