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Assessment of Innovative Approaches for Flood Risk Management and Financing in Agriculture

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Publication date
05/05/2009
Number of Pages
11
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Asia and the Pacific
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Weather & Climate related
Type of Risk Managment Option:
Risk assessment
Commodity:
Crops
Author
Alexander Lotsch, William Dick, Ornsaran Pomme Manuamorn
Organization
The World Bank

This report details the need for increased awareness and action of donors and governments regarding agricultural risk management mechanisms for flooding, particularly insurance, awareness, and planning. Floods in agricultural zones expose agricultural producers, agricultural supply chains, rural financial institutions (such as agricultural banks), and governments to financial risks due to the loss of crops, delinquency on seasonal production loans, damage to infrastructure and loss of public revenues. In many developing countries, floods are dealt with in a reactive, rather than proactive, manner and little is done to be financially prepared for a catastrophic outcome of floods. The report concludes with detailing how, going forward, government and donors can play an important role in facilitating the development of risk spreading mechanisms in general and agricultural flood insurance in particular.