Crop and Livestock Compensation/Insurance against Climate -induced Disasters and Wildlife Incursions Report Enhancing Sustainability and Climate Resilience of Forest and Agriculture Landscape and Community Livelihoods in Bhutan Belt.’ UNDP, BHUTAN SEPTEMBER 2016 TABLE OF CONTENTS Page No. Acronyms ......................................................................................................................................................... 5 Executive Summary ...................................................................................................................................... 6 1. Background ................................................................................................................................................. 9 2. Methodology ............................................................................................................................................ 10 2.1 Literature review............................................................................................................................................................... 10 2.2 Survey design....................................................................................................................................................................... 12 2.2.1 Selection of Gewogs and Chewogs for field study ..................................................................................12 2.2.2. Selection of Chewogs ...........................................................................................................................................13 2.2.3. Field Surveys ............................................................................................................................................................14 2.3. Data Analysis ...................................................................................................................................................................... 16 3. Vulnerabilities and Issues in Agriculture ........................................................................................ 18 3.1 Trends at Dzongkhag Level .......................................................................................................................................... 18 3.1.1 Vulnerabilities related to climate-induced loss in crop yield and quality.................................18 3.1.2 Vulnerabilities related to crop loss by wildlife ........................................................................................18 3.1.3 Loss of Four Major Crop Types due to Wildlife .......................................................................................20 3.2 Trends at Gewog Level .................................................................................................................................................... 22 3.2.1 Vulnerabilities related to agriculture ...........................................................................................................22 3.2.2 Vulnerabilities related to climate-induced loss in crop yield and quality.................................23 3.2.3 Loss of four major crop types due to wildlife ...........................................................................................25 4. Human Wildlife Conflict ....................................................................................................................... 28 4.1 Vulnerability by Damage to Crops ............................................................................................................................ 28 4.2 Vulnerability by Livestock Depredation ................................................................................................................. 31 4.3 Vulnerability by Severity: Ranking by Chewogs and Gewogs ....................................................................... 32 4.4 Trends in Human Wildlife Conflicts .......................................................................................................................... 33 4.5 Hotspots of Livestock Depredation ........................................................................................................................... 35 4.6 Hotspots Mapping for Severity of Damage within the Project Landscapes ........................................... 37 4.6.1 Severity of crop damage by climate-induced factors ...........................................................................37 4.6.2 Severity of damage to 4 crops by wildlife incursions ..........................................................................39 4.6.3 Severity of livestock depredation ...................................................................................................................42 5. Conflict Management Strategy ............................................................................................................ 44 5.1 Policies, Legislation, Regulations and Programs................................................................................................ 44 5.2 Review of best practices ................................................................................................................................................. 45 5.2.1 Monetary compensation in South Asia ........................................................................................................45 5.2.2 Monetary compensation in the western USA ...........................................................................................46 5.2.3 Pre-emptive monetary compensation in Sweden ..................................................................................46 5.2.4 Innovation in livestock insurance in Pakistan .........................................................................................46 5.3 Interventions and Adaptation ..................................................................................................................................... 47 5.4 Community and Institutional Capacities................................................................................................................ 50 6. Proposed Interventions ....................................................................................................................... 53 6.1 Prevailing Schemes for Crop and Livestock Compensation ........................................................................... 53 6.2 Monetary compensation for livestock depredation........................................................................................... 54 2 6.3 Electric fencing ................................................................................................................................................................... 54 6.4 Community-based insurance through Gewog Environment Conservation Committees .................. 55 6.5 Private Cattle Insurance ................................................................................................................................................ 57 7. Pilot Project Interventions .................................................................................................................. 58 7.1 Human Wildlife Conflict Management Strategy ................................................................................................. 58 7.2 Private Livestock Insurance ......................................................................................................................................... 60 7.3 Private Crops Insurance ................................................................................................................................................. 62 7.4 Financial Plan ..................................................................................................................................................................... 65 Bibliography ................................................................................................................................................ 67 Annex 1: Terms of Reference ............................................................................................................................................... 73 Annex 2: Selection of Chewogs for the study ................................................................................................................ 78 Annex 3: Gewog level questionnaire ................................................................................................................................ 80 Annex 4: Chewog level questionnaire .............................................................................................................................. 81 Annex 5: Livestock Depredation in Project Landscapes (2002-2015) ............................................................. 85 Annex 6: Crop Damage by Climate Induced Factors in Project Landscapes (2011-2015) ..................... 89 Annex 7: SAFE Approach to HWC management, adapted for Bhutan ............................................................. 91 Annex 8: Cattle insurance policy (RICB) ........................................................................................................................ 96 Annex 9: Crop insurance proposal (RICB) ..................................................................................................................... 99 Annex 10: List of consultations ........................................................................................................................................ 102 List of Tables, Figures