Saving for a rainy day

02 Dec 2015 by Yusuke Taishi, Regional Specialist for Climate Change Adaptation, UNDP - Global Environment Finance Unit, Bureau for Policy and Programme Support

people sitting around tableOne of the first farmers who received a WIBI payout for low rainfall in Tacunan, Tugbok District. Photo: UNDP Philippines
“Save for a rainy day” is probably the single most important piece of wisdom a farmer can follow. Farming is a risky undertaking everywhere, one that is at the mercy of capricious weather. But farmers in the Philippines (and many other developing countries) now face additional difficulties as climate change makes weather more unpredictable than ever. Traditional approaches to predicting the arrival of the rains are becoming less and less effective, with rain sometimes falling too sparsely and other times too hard. Crop insurance is a common safeguard. In the United States, 90 percent of total harvested cropland is insured. But in the Philippines, crop insurance products cover less than 10 percent of total rice and corn production. Moreover, insurance in the Philippines is “indemnity-based”, which means that the damage needs to be verified by an insurance agent and payouts typically take up to six months. … Read more

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