Promoting Adoption of Improved Production Technologies among Smallholders in Ghana via Coupled Credit and Index Insurance Contracts
Last registered on August 14, 2018

Pre-Trial

Trial Information
General Information
Title
Promoting Adoption of Improved Production Technologies among Smallholders in Ghana via Coupled Credit and Index Insurance Contracts
RCT ID
AEARCTR-0003231
Initial registration date
August 13, 2018
Last updated
August 14, 2018 10:00 PM EDT
Location(s)
Region
Primary Investigator
Affiliation
The Ohio State University
Other Primary Investigator(s)
PI Affiliation
Millennium Challenge Corporation
PI Affiliation
The Ohio State University
Additional Trial Information
Status
Completed
Start date
2015-02-16
End date
2017-04-30
Secondary IDs
Abstract
The Ohio State University and the African Center for Economic Transformation, in collaboration with the University of Ghana, propose to undertake a three-year program of research, outreach, and education designed to promote the adoption of improved production practices among Ghanaian smallholders. OSU/ACET is committed to rigorously testing through randomized control trails and other relevant methods the hypotheses that coupling index insurance with production loans that require any indemnity payment to be first applied to outstanding loans will reduce the impact of widespread agricultural loan defaults on lenders during adverse systemic natural events, thereby allowing lenders to expand access to credit among smallholders and reduce the interest rates they charge on agricultural production loans. OSU/ACET will use as its laboratory the index insurance initiatives being introduced by the Ghana Agricultural Insurance Programme (GAIP), an organization of 19 Ghanaian insurance companies whose primary mission is to assist members in creating, designing, rating and implementing crop insurance products in Ghana. OSU/ACET will build capacity in Ghana through extensive outreach aimed at agricultural insurers, agricultural lenders, value chain participants, farmer groups, and agricultural policymakers and through educational initiatives involving the University of Ghana’s PhD program in Applied Agricultural Economics and Policy.
External Link(s)
Registration Citation
Citation
Miranda, Mario, Francis Mulangu and Abdoul G. Sam. 2018. "Promoting Adoption of Improved Production Technologies among Smallholders in Ghana via Coupled Credit and Index Insurance Contracts." AEA RCT Registry. August 14. https://www.socialscienceregistry.org/trials/3231/history/33067
Sponsors & Partners

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Experimental Details
Interventions
Intervention(s)
The intervention of our experiment is drought-based index insurance in northern Ghana. We worked with our local partner, Ghanaian Agricultural Insurance Pool, to design two identical types of drought index-insurance that are attached to agricultural loans obtained by farmers; we call these insured loans. The first type is called micro-insured loan where the credit is insured for 100% of its value and the payouts go to the farmers. The second type is called meso-insured loan where the credit is insured 100% of its value and the payouts go to the agricultural banks i.e., the lending institution.
Intervention Start Date
2015-04-16
Intervention End Date
2016-04-30
Primary Outcomes
Primary Outcomes (end points)
Credit access: demand and supply of agricultural loans, demand for index insurance depending on product design, agricultural technology adoption
Primary Outcomes (explanation)
N/A
Secondary Outcomes
Secondary Outcomes (end points)
Agricultural production in terms of yields and land use (acres planted)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
The identification strategy of this study is the randomization of farmer groups with two treatment arms and one control arm. Farmer groups in our control category are offered a basic loan with no requirement of insurance. Farmer groups in Treatment 1 category are required to take out an insured loan, with the insurance indemnity flowing to the farmer if triggered. Similarly, farmer groups in Treatment 2 are required to take out an insured loan with the insurance indemnity transferred to the lender and not the farmer for the purpose of forgiving part or all of the loan. For both treatments, the insurance premium is covered in full by the project. The timeline of the intervention is as follows:
Feb-March 2015: Baseline survey
April 2015: 1st Intervention -- loan officers met with farmer groups, described their loan type, and invited them to apply.
Feb-Mar 2016: Follow-up survey
April 2016: 2nd Intervention -- loan officers met with farmer groups, described their loan type, and invited them to apply.
Feb-Mar 2016: Endline survey
Experimental Design Details
Randomization Method
Stratified randomization using Excel and Stata
Randomization Unit
Farmer groups
Was the treatment clustered?
Yes
Experiment Characteristics
Sample size: planned number of clusters
258 farmer groups
Sample size: planned number of observations
774 farmers
Sample size (or number of clusters) by treatment arms
86 Control farmer groups, 86 Treatment 1 farmer groups, and 86 Treatment 2 farmer groups
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
The Ohio State University
IRB Approval Date
2014-12-08
IRB Approval Number
2014B0442
Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
Yes
Intervention Completion Date
April 30, 2016, 12:00 AM +00:00
Is data collection complete?
Yes
Data Collection Completion Date
April 30, 2017, 12:00 AM +00:00
Final Sample Size: Number of Clusters (Unit of Randomization)
258 farmer groups
Was attrition correlated with treatment status?
No
Final Sample Size: Total Number of Observations
779 farmers in baseline and follow-up each, and 774 in endline
Final Sample Size (or Number of Clusters) by Treatment Arms
86 control farmer groups, 87 Treatment 1 farmer groups, and 85 Treatment 2 farmer groups
Data Publication
Data Publication
Is public data available?
No

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Program Files
Program Files
No
Reports and Papers
Preliminary Reports
Abstract
We completed the baseline, followup, and endline surveys. The analysis in on its way, however, our preliminary results show that coupling drought index insurance with loans increases the likelihood of loan approval by the banks, i.e., reduces supply side barriers to credit constraints. We also completed a capacity building meeting between our local partners, banks, and insurance company to help design a commercially viable index insurance product for northern Ghana.
Completion Date
August 06, 2015 12:00 AM +00:00
Url
https://www.dropbox.com/s/4smta1a6iy0w2p8/OSUACET%20BASIS%20Project%20Annual%20Report%202015%20-%20Annual%20Activity%20Report.docx?dl=0
Abstract
Completion Date
October 22, 2016 12:00 AM +00:00
Url
https://www.dropbox.com/s/289mko02595aj8v/OSUACET%20BASIS%20Project%20Annual%20Report%202016%20-%20Annual%20Activity%20Report.docx?dl=0
Relevant Papers
Abstract
This is a blogpost written for our funding partner, USAID BASIS, by one of the GAs, Khushb Mishra, based on preliminary analysis of our data.
Citation