INSURANCE FOR CROP RISKS MANAGEMENT ANTIOCH UNIVERSITY NEW ENGLAND

376 Pages·2017·2.71 MB·English

by  Sumani John Bosco

RUNNING HEADER: INSURANCE FOR CROP RISKS MANAGEMENT
ANTIOCH UNIVERSITY
NEW ENGLAND
Department of Environmental Studies

DISSERTATION COMMITTEE PAGE

The undersigned have examined the dissertation entitled:

Exploring Perceptions of the Potential of Agricultural Insurance for Crop Risks Management
Among Smallholder Farmers in Northern Ghana

Presented by John Bosco Baguri Sumani, candidate for the degree of Doctor of Philosophy, and
hereby certify that it is accepted.

Committee Chair: James W. Jordan, Ph.D., Department Environmental Studies, Antioch
University New England, Keene, NH, USA

Committee Member: Jean Kayira, Ph.D., Department of Environmental Studies, Antioch
University New England, Keene, NH, USA

Committee Member: Helen Greatrex, Ph.D., International Research Institute for Climate and
Society, Colombia University, New York, USA

Defense Date: May 10, 2018
Date Submitted to Registrar’s Office:

Signatures are on file with the Registrar’s Office, Antioch University New England, Keene, NH,
USA
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Exploring Perceptions of the Potential of Agricultural Insurance for Crop Risks
Management Among Smallholder Farmers in Northern Ghana

By
John Bosco Baguri Sumani

A dissertation submitted in partial fulfillment of the requirements for the award for the degree of
DOCTOR OF PHILOSOPHY
In
Environmental Studies

At Antioch University New England
2018
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© 2018
John Bosco Baguri Sumani
ALL RIGHTS RESERVED
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Abstract
Smallholder farmers in Northern Ghana are exposed to multiple agricultural risks, which require
various adaptation strategies to address. However, these strategies are only partially effective.
Agricultural insurance has been promoted to assist smallholders in low-income countries to
manage their key agricultural risks. The Ghanaian government and its collaborating partners
introduced three agricultural insurance programs (AIPs) since 2009. In countries other than Ghana,
some post-piloting evaluations of AIPs have revealed mixed outcomes, with some schemes
resulting in unintended socio-ecological and maladaptive consequences. Despite these concerns,
no study has explored the potential of agricultural insurance for smallholders’ crop risks
management in Ghana. Thus, this research was undertaken to address this gap. It also investigates
stakeholders’ perspectives of the potential of AIPs in promoting sustainable farming agricultural
practices and climate change mitigation. I employed a convergent research design to address these
issues using stratified, purposeful, and random sampling. Focus groups, informant interviews, and
questionnaires were utilized to solicit responses. The resultant data and themes were analyzed
using SPSS and Excel. This research revealed that agricultural risks, including those related and
unrelated to weather and climate—have been adversely affecting smallholders, and have been
addressed by farmers through food rationing, out-migration, and technology-based adaptation
strategies. Some reported benefits of AIPs were the motivations to increase crop production, farm
investments, and financial protection. This study provides scholarly, practical, regulatory, and
policy-focused insight into agricultural insurance growth. My findings indicate that further
attention and research are needed to building awareness about AIPs, the design of farmer-sensitive
contracts, and their subsidization by government. I recommend future research focus on addressing
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issues of upstream and downstream agro-risks management and on replicating this study in other
geographical locations where smallholder farmers struggle to survive
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Keywords: Agricultural insurance, agricultural risks, crop risks management strategies, sustainable
farming practice, climate change mitigation, smallholder farmers, Northern Ghana
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Dedication

I dedicate this dissertation project to my dear wife, Alice Dakurah, and lovely children; Bright,
Roland, and twins Jayden and Jaylen, for their support and understanding of my always being
away at the time they needed me most. I also pay tribute to my parents, Sumani Nyebadi of blessed
memory, and Naamah Zindiyele Nyebadi, for all they have done to catapult me this far, irrespective
of the tumultuous times and challenges.
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Acknowledgments

I wish to acknowledge the contribution of my committee members, Drs. James W. Jordan and Jean
Kayira of the Environmental Science (ES) Department of Antioch University New England
(AUNE), and Dr. Helen Greatrex of International Research Institute for Climate and Society,
Columbia University, New York, to this final product. I would like to specially thank them for the
guidance, support, and timeliness with feedback, even when I sometimes gave them only a short
time to review voluminous chapters. I also acknowledge the wonderful blend of talents and
expertise at my disposal, which covered climate variability and change, research methodology,
and agricultural insurance, from both applied and theoretical lenses. I would like to thank them,
especially for the promise to make their talents and expertise available to me even after my
graduation.

I would also like to acknowledge the contribution and support of the Most High, my parents,
managers of the University for Development Studies, friends, especially Yves Gakunde, relatives,
and staff of the ES department and the larger Antioch and Keene community. AUNE is a great
place to be and made such a great impression on me during my master’s degree program that I
returned there to pursue my Ph.D. studies.

My special thanks go to the Government of Ghana, represented by the Ghana Education Trust
Fund (GETFUND) for sponsoring my Ph.D. studies. Without this sponsorship, I probably would
have been nowhere to be called and recognized as a Ph.D. holder. I am proudly a Ghanaian.
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Table of Contents
Abstract .......................................................................................................................................... iv
Dedication ..................................................................................................................................... vii
Acknowledgments........................................................................................................................ viii
List of Figures .............................................................................................................................. xiv
List of Tables ................................................................................................................................ xv
List of Appendices ....................................................................................................................... xvi
List of Abbreviations .................................................................................................................. xvii
Chapter 1: General Introduction ..................................................................................................... 1
1.1 Introduction ...................................................................................................................... 1
1.2 The Agricultural Sector: Its Importance and Risks .......................................................... 1
1.3 The Motivation for This Research ................................................................................... 6
1.4 Significance of the Study ................................................................................................. 8
1.5 Delineation of the Study ................................................................................................. 11
1.6 Assumptions ................................................................................................................... 12
1.7 Dissertation Chapter Organization: ................................................................................ 13
1.8 Chapter Summary ........................................................................................................... 13
Chapter 2: Conceptual Framework and Literature Review .......................................................... 16
2.1 Introduction .................................................................................................................... 16
2.2 Conceptual Framework .................................................................................................. 16
2.3 Sources of Agricultural Risks and the Associated Theoretical Background of the
Conceptual Framework ............................................................................................................. 19
2.4 Literature Review ........................................................................................................... 24
2.5 Smallholder Farmers’ Key Agricultural Risks in Low-income Countries ..................... 26
2.6 Weather and Climate-induced Agricultural Risks. ........................................................ 28
2.7 Non-weather and Climate-induced Agricultural Risks. ................................................. 31
2.8 Evolution of Agricultural Risks Management Strategies in Low-income Countries..... 32
2.9 Index-based Agricultural Insurance in Low-income Countries………………………..35
2.10 The Role of Index-based Agricultural Insurance in Crop Risks Management in Low-
income Countries....................................................................................................................... 37
2.11 The Role of Agricultural Insurance in Promoting Sustainable Farming Practices and
Climate Change Mitigation ....................................................................................................... 41
2.12 Summary and Conclusions ............................................................................................. 46
Chapter 3: Research Methodology and Design ............................................................................ 50
3.1 Introduction .................................................................................................................... 50
3.2 The Study Methodology and Paradigm .......................................................................... 51
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3.3 Study Design .................................................................................................................. 52
3.3.1 Study Site and Scope .............................................................................................. 52
3.3.2 Selection of Study participants ............................................................................... 54
3.3.3 Study Approach, Design, and Justification ............................................................. 55
3.3.4 Sampling Strategies ................................................................................................ 56
3.4 Pre-Testing of Sampling Strategies and Data Collection Methods ................................ 59
3.5 Qualitative Data Collection Methods and Variables ...................................................... 62
3.5.1 Focus Group Discussions ........................................................................................ 62
3.5.2 Key informant interviews ....................................................................................... 66
3.6 Quantitative Research Methods and Variables .............................................................. 68
3.6.1 Self-administered questionnaires. ........................................................................... 68
3.7 Data Analysis ................................................................................................................. 71
3.8 Validity and Reliability Considerations ......................................................................... 77
3.9 Strategies to Address Ethical Concerns ......................................................................... 81
3.10 Limitations of the Study ................................................................................................. 85
Chapter 4: Results on Perspectives of Smallholder Farmers' Key Agricultural Risks in Northern
Ghana ............................................................................................................................................ 88
4.1 Introduction .................................................................................................................... 88
4.2 Duori-Guo Community .................................................................................................. 88
4.2.1 Weather/Climate-induced Agricultural Risks ......................................................... 89
4.2.2 Non-weather-induced Agricultural Risk ................................................................. 89
4.3 Kazigo Community ........................................................................................................ 93
4.3.1 Weather/Climate-related Agricultural Challenges .................................................. 94
4.3.2 Non-weather/Climate-based Agricultural Risks ..................................................... 95
4.4 Nyankpala Community .................................................................................................. 95
4.4.1 Weather/Climate-related Agricultural Risks ........................................................... 97
4.4.2 Non-weather-related Agricultural Risks ................................................................. 97
4.5 Identification of Key Agricultural Risks by Key Informants ......................................... 99
4.5.1 Weather/climate-related Key Agricultural Risks .................................................... 99
4.5.2 Non-weather-related Agricultural Risks ............................................................... 101
4.6 Identification of Smallholder Farmers’ Key Agricultural Risks and the Associated
Impacts on Smallholder Farmers in Northern Ghana from Questionnaire Survey ................. 111
4.6.1 The Occurrence of General Weather and Climate Variability/Change over the
Years as Smallholder Farmers' Key Agricultural Risks ...................................................... 112
4.6.2 Manifestations of the Varying/Changing Weather/Climate ................................. 112
4.6.3 Ranking of Key Agricultural Risks Affecting Smallholder Farmers in Northern
Ghana 114
4.6.4 Impacts of Key Agricultural Risks on Smallholder Farmers ................................ 116
Chapter 5: Results on Smallholder Farmers’ Agricultural Risks Management Strategies ......... 117
5.1 Introduction .................................................................................................................. 117
5.1.1 Livelihood-related Agricultural Risks Management Strategies ............................ 118