Financial Resilience Issues in Agriculture

This chapter deals with possible strategies that enable sustainable and adequate funding and prevention against natural disasters focusing on agriculture. The present climate change situation requires new forms of financial resilience against natural catastrophes in the agricultural sector through the analysis and identification of innovative and sustainable solutions based on insurance, prevention, mitigation and compensation. The author argues that it is important to create a new understanding of the reasons causing the low level of uptake and availability of insurance coverage for natural disasters and to promote the availability, adequacy and efficiency of different types of financial tools, stimulating academic and public debate on the necessity to find viable response strategies in the financial management of natural disasters. The present tools of insurance contracts, index based insurance, cat bonds and farmers’ mutual funds must be integrated and made interoperative.