Annex 2. Agricultural Production Systems in Guyana

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Annex 2. Agricultural Production Systems in Guyana Table of Contents A Public Disclosure Authorized Guyana Agricultural Insurance Component Pre-feasibility Study Report Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Financed by: All ACP Agricultural Commodities Programme ACP GROUP OF STATES EUROPEAN COMMISSION B Guyana Agricultural Insurance Component Pre-Feasibility Study Report Guyana Agricultural Insurance Component Pre-feasibility Study Report May 2010 Financed by: All ACP Agricultural Commodities Programme ACP GROUP OF STATES EUROPEAN COMMISSION Table of Contents iii Table of Contents Acknowledgements ................................................................................................................................................... v Abbreviations ...........................................................................................................................................................vii Executive Summary ...................................................................................................................................................1 Context ..............................................................................................................................................................................................................1 Challenges for the Development of Agricultural Insurance in Guyana .....................................................................................2 Options for Consideration ..........................................................................................................................................................................4 Chapter 1. Introduction and Objectives of the Study ............................................................................................10 Importance of Agriculture in Guyana .................................................................................................................................................. 11 Government Policy for Agricultural Development ......................................................................................................................... 12 Government Objectives for Agricultural Insurance ........................................................................................................................ 12 Report Outline ............................................................................................................................................................................................. 13 Chapter 2. Agricultural Risk Assessment in Guyana ..............................................................................................14 Overview of Climatic Risk Exposures to Agriculture in Guyana ................................................................................................ 14 Agricultural Production Systems in Guyana .................................................................................................................................... 16 Rice Crop Yield Risk Assessment ........................................................................................................................................................... 22 Crop Weather Index Risk Assessment ................................................................................................................................................. 28 Fruit and Vegetables Crop Risk Assessment ..................................................................................................................................... 29 Aquaculture Risk Assessment ................................................................................................................................................................ 32 Chapter 3. Agricultural Insurance Opportunities and Challenges for Guyana ...................................................34 Demand for and Supply of Agricultural Insurance in Guyana ................................................................................................... 34 Crop, Livestock and Aquaculture Insurance Options for Guyana.............................................................................................. 35 Rice Insurance Options for Guyana ...................................................................................................................................................... 36 Fruit and Vegetables (Named-peril Cover) Insurance for Guyana ............................................................................................ 42 Livestock (Cattle) Insurance for Guyana ............................................................................................................................................. 45 Aquaculture Insurance for Guyana ....................................................................................................................................................... 48 Crop Weather Index Insurance .............................................................................................................................................................. 49 Chapter 4. Institutional Framework for Agricultural Insurance ...........................................................................52 Ex-post Disaster Relief Programs versus Ex-ante Agricultural Insurance ................................................................................ 52 Framework for a Private-Public Partnership for Agricultural Insurance in Guyana ............................................................ 53 Role of Private Insurance Companies .................................................................................................................................................. 54 Role of Commercial Banks and MFIs as Distribution Channels for Insurance ....................................................................... 57 Risk Financing and Role of Reinsurers ................................................................................................................................................. 59 Role of Government ................................................................................................................................................................................... 60 Chapter 5. Discussion, Conclusions and Next Steps .............................................................................................63 Discussion and Conclusions .................................................................................................................................................................... 63 Next Steps ...................................................................................................................................................................................................... 65 Bibliography .............................................................................................................................................................67 iv Guyana Agricultural Insurance Component Pre-Feasibility Study Report Annexes Annex 1. Overview of Climatic Risk Exposures of Agriculture in Guyana ...............................................................................71 Annex 2. Agricultural Production Systems in Guyana....................................................................................................................77 Annex 3. Rice Crop Yield Risk Assessment ..........................................................................................................................................86 Annex 4. Crop Weather Risk Assessment .........................................................................................................................................125 Annex 5. Fruit and Vegetables Crop Risk Assessment .................................................................................................................133 Annex 6. Livestock (Cattle) Risk Assessment ..................................................................................................................................138 Annex 7. Aquaculture Risk Assessment .............................................................................................................................................139 Annex 8. Individual Farmer Crop MPCI and Suitability for Guyana .........................................................................................140 Annex 9. Area-yield Index Insurance Policy Design and Rating for Rice in Guyana ..........................................................143 Annex 10. Fruit and Vegetables Named-peril Policy Features and Suitability for Guyana ...............................................159 Annex 11. Livestock Insurance Policy Features and Suitability for Guyana ...........................................................................160 Annex 11A. Community-run Livestock Insurance Scheme in India..............................................................................................161 Annex 12. Aquaculture Insurance Policy Features and Suitability for Guyana .....................................................................162 Annex 13. Crop Weather Index Insurance Features and Suitability for Guyana ...................................................................164 Annex 14. Bank and MFI Lending to Agriculture .............................................................................................................................169 Acknowledgements v Acknowledgements This report was authored by a team
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