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Agriculture is central to the livelihoods of the rural poor and in the attainment of the Millennium Development Goals (MDGs). Agriculture has always been a risky business. In recent years, natural disasters, particularly climate-related ones, have increased both in frequency and magnitude. Scientists the world over have agreed (IPCC AR4, 2007) that human-induced climate change is exacerbating this impact. Agriculture sector is likely to be affected most due to extreme weather events like cyclone, flood or drought. So, the farmers are hit hardest. For Drought plain countries like Iran, structural measures for management of disaster risk and its consequences often were found less effective. So non-structural measures like micro-insurance or crop insurance are being suggested as a risk management strategy. UN Climate Convention and the Kyoto Protocol have included the provision of insurance as a mechanism to address the risks from climate change. The main objective of the study was to develop a realistic framework and concrete roadmap for introducing crop insurance as a risk management strategy for the farmers in Iran. The study is based on both secondary and primary data and information. Survey was the research method, and data was collected by questionnaire and different instruments, such as survey questionnaire, FGDs, interview schedule, inception workshop and roundtable discussions with stakeholders at different levels. The three survey districts were: Golestan Province (as a flashflood area, north of Iran), Khuzestan Province (as a drought area, south of Iran) and Khuzestan Province (as a cyclone and flood-prone area, south of the country). The results revealed that four independent variables explain adoption of Drought insurance. Consult with other farmers is the main independent variable.


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