Climate change is having an increasing effect on wheat production in the region. Agricultural insurance helps reduce risks for producers and improve rural incomes. The pilot product was combined with agricultural loans from the Mongolian government to promote further investment in modern farming methods and improve the resilience of producers.
In 2020, insurance was provided to 387 producers with a total area of 22,488 hectares of wheat valued at 4.4 million euros. Production losses were recorded and evaluated using a vegetation index developed by IAMO. A total of 45 farms received payouts from the local insurance provider at the end of the season.
Project coordinator and IAMO researcher Ihtiyor Bobojonov commented that, “Our team is currently in the process of evaluating the effects of the pilot project in terms of farm productivity and investments. We expect important findings, especially with regard to adoption of environmentally friendly cultivation methods.”
