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Field
Trial Status
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Before
in_development
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After
completed
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Field
Last Published
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Before
August 24, 2014 08:54 PM
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After
April 15, 2018 05:07 PM
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Field
Intervention (Public)
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Before
The main aspect of the treatment to be randomized is whether the insurance offered by the partner contract farming company is paid for up front or on credit.. The insurance on credit is identical to the standard insurance, except the cost (plus interest at the standard rate for other inputs) is agreed to be borne as a deduction from the farmer's revenue after harvest. We will study the impact of offering the insurance through deduction and compare this effect to the effect of a large reduction (about 30%) in premium when paying upfront.
The insurance offered has a double trigger design. Payment occurs only if both farmer's individual yield is low and the local average yield is low. The triggers are based upon an econometric model using historical data.
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After
The main aspect of the treatment to be randomized is whether the insurance offered by the partner contract farming company is paid for up front or on credit.. The insurance on credit is identical to the standard insurance, except the cost (plus interest at the standard rate for other inputs) is agreed to be borne as a deduction from the farmer's revenue after harvest. We will study the impact of offering the insurance through deduction and compare this effect to the effect of a large reduction (about 30%) in premium when paying upfront.
The insurance offered has a double trigger design. Payment occurs only if both farmer's individual yield is low and the local average yield is low. The triggers are based upon an econometric model using historical data.
[POST-TRIAL AMENDMENT, 4/17/2018:] In addition to the main experiment, we also run two smaller experiments, with 120 farmers each. In the first, we cross cut the insurance on credit treatment with a cash drop. In the second, farmers chose between a cash payment and free enrollment in the insurance. One half of farmers received their choice immediately, whereas the other half of farmers received their choice in one month's time.
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Field
Experimental Design (Public)
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Before
We study take-up of agricultural insurance in a sample of approximately 600 sugarcane contract farmers.
Plots are randomized in three treatment groups
1. Insurance with actuarially fair premium paid upfront
2. Insurance with premium equal to 70% of the actuarially fair value paid upfront
3. Insurance with actuarially fair premium (+interest) paid through deduction at the end of the cycle
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After
We study take-up of agricultural insurance in a sample of approximately 600 sugarcane contract farmers.
Plots are randomized in three treatment groups
1. Insurance with actuarially fair premium paid upfront
2. Insurance with premium equal to 70% of the actuarially fair value paid upfront
3. Insurance with actuarially fair premium (+interest) paid through deduction at the end of the cycle
[POST-TRIAL AMENDMENT, 4/17/2018:] In addition to the main experiment, we also ran two smaller experiments, with 120 farmers each. In the first small experiment (``cash drop experiment’’), we cross cut the insurance on credit treatment with a cash drop, worth approximately the value of the insurance premium. Each cross-cut treatment group comprised about 30 farmers. In the second small experiment, 120 farmers chose between a cash payment, equal to the insurance payment, and free enrollment in the insurance. One half of farmers were told they would receive their choice immediately, whereas the other half of farmers were told they would receive their choice in one month's time. Both small experiments had the same randomization method as the main experiment (described in the Experimental Design Details below).
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