Background:

Farming has always been a risky business, but agricultural producers are facing increased uncertainties caused by climate change, rising competition due to globalization, and larger fluctuations in market prices resulting from more frequent and intense trade frictions. These situations chiefly affect people who rely on farming, livestock, forests or fishing for their food and income – around one-third of the world’s population. People with resilient livelihoods are better able to prevent and reduce the impact of disasters on their lives. They can better withstand damage, recover and adapt when disasters cannot be prevented. Agricultural producers employ a variety of strategies to manage financial risks including investments in lower risk enterprises, enterprise diversification, maintaining relatively low debt-to-asset
ratios and adequate financial reserves, and developing off -farm income sources. In all countries, farmers need to dispose of an array of efficient risk management tools and strategies to be able to contribute to food security and other Sustainable Development Goals (SDGs). The national governments are often involved in many aspects of providing agricultural insurance, including subsidizing the premiums to reduce the burdens of smallholders.