| In West Africa, farm income is highly exposed to risks from crop failure in the drier, inland areas, and from fluctuations in (world market) prices in the wetter coastal areas. As individuals and even extended families are poorly equipped to deal with these, provision of social safety nets is required Our paper reviews the situation in Ghana and the way in which the new financial instrument of index-based insurance might contribute to better it, focusing on the estimation of a crop indemnification scheme for farmers in Northern Ghana. It recalls that in a poor rural area like Northern Ghana, provision of social safety almost coincides with food security management, and must, therefore, distinguish three basic subtasks: distributing income entitlements... |
