Drought climate adaptation program: producing enhanced agricultural crop insurance systems: summary report

Queensland farmers are subject to highly variable climatic conditions, including drought and floods, which can undermine production. Insurance could play an important role in helping Queensland farmers manage their climate risk. However, currently, the use of insurance to manage climate-related production risk is poorly understood and utilised by farmers. This project aims to address this gap by providing information on climate risks and the role of insurance for managing these. This project conducted focused reviews on climate risk in agriculture and on how insurance products could be used to address these risks. The project also carried out on-ground surveys from cotton and sugar industry and conducted modelling to assess risks and the role of insurance for cotton and sugar cane farmers in Queensland. Prototype climate assessment risk and reporting tools were also developed. The reviews carried out in this project identified that Queensland’s agricultural sector is highly exposed to production volatility as a result of weather risks. It is our view that the Queensland agricultural sector has an excellent opportunity to provide its farmers with protection against uninsured seasonal risks to crop production. Key climate and farming systems risks were identified by interviewing a total of 55 farmers (23 cotton growers and 32 sugar cane growers) across Queensland. Key climate risks to the cotton industry include hail, drought/dry years (lack of rainfall during planting and season), quality downgrade (discolouration), excessive heat, floods and wet weather (during the season and especially during harvest). Similarly, for the sugar industry, key climate risks include drought, flood, excessive rainfall during harvest, cyclone, pests and disease. Key messages from farmer surveys are that current insurance products available to Queensland farmers (specifically, cotton and sugar cane farmers) may not address critical risks to the production and/or profitability of these systems and that farmers would prefer to have comprehensive insurance products available that cover them against profitability losses across multiple risk factors. Based on survey findings three prototype insurance products were developed for the cotton industry Insurance products developed were Drought Cover: insufficient rainfall during the planting season – August to November; Drought Cover: insufficient rainfall during growing season – November to February; and Wet Harvest Cover: excessive rainfall during harvest season – March to June. Two prototype insurance products were developed for the sugar industry. They include; Cyclone Cover: crop damage during cyclone season – November to April; and Wet Harvest Cover: excessive rainfall during harvest season – June to December Rainfall-indexed based worked examples were also developed for sugar and cotton industry growers

Diverse drivers of unsustainable groundwater extraction behaviour operate in an unregulated water scarce region

Depletion of groundwater resources is of increasing concern in many parts of the world; however, farmers'perceptions of resource status and the role these have in influencing decisions about groundwater use are rarely considered and even more rarely analysed. This paper investigates the links between farmers' perceptions of resource condition and drivers of groundwater decline and patterns of groundwater use in the semi-arid highland region of Balochistan, Pakistan. Key factors associated with groundwater over-exploitation in this region, identified by farmers, include: high returns from irrigated fruit and vegetable cultivation; drought; mass installation of tubewells; inefficient irrigation practices; government policies and subsidies that promote groundwater development; and lack of effective groundwater governance. Critically, while a majority of farmers in this study believe that groundwater is a limited resource, there is little evidence to indicate that this then leads to sustainable groundwater use decision making within these communities. Without effective intervention, groundwater resources in this region will potentially suffer the consequences of human behaviour associated with the use of common pool resources identified in Hardin's (1968) seminal ‘Tragedy of the Commons’ paper. This study exemplifies the importance to the future of rural communities in water scarce regions of effective governance, regulations and economic incentives for sustainable water management