Evaluation of the effects of introducing risk management tools in agricultural development: PADAER Senegal

This study aims at analyzing the effects of risk management on the agricultural performance of rural producers benefiting from the joint support of the Senegalese State and IFAD. We use data from a study commissioned by PADAER . Collection covers two regions of Senegal: Kolda and Tambacounda. After auditing; our sample comprises 1196 producers including 198 beneficiaries of the indexed harvest insurance facilitated by the PADAER. The quasi-experimental method known as the Propensity Score Matching Method is used to determine the impact of subscribing to index-based insurance on the farmer's production, agricultural investments and annual income. Although the results of the estimates show that the project has not yet had any effect on production, without the intervention of this project producers would have recorded a loss of about 57,600 FCFA. Not only did the index insurance based on the harvest facilitated by the PADAER allowed the beneficiary to cover this loss and realize a gain estimated at 12,749 FCFA.