Index-Based Crop Protection

Index-based crop protection is a risk management approach that uses weather data, climate patterns, and other environmental factors to predict and manage crop risks. Instead of relying solely on traditional insurance models, this system offers farmers financial protection against weather-related disasters like droughts, floods, or storms. Using an index based on factors such as rainfall levels or temperature variations, farmers can receive payouts when conditions exceed predefined thresholds that are harmful to crops. This innovative method offers timely and more efficient compensation, encouraging farmers to invest in climate-resilient crops and sustainable farming practices, while helping to ensure their livelihoods in the face of climate uncertainty.