Holistic approach

The World Bank assists clients to develop and apply more effective and sustainable strategies for managing agricultural risks through investment lending and technical assistance involving (i) physical infrastructure (e.g., irrigation and drainage facilities); (ii) technology development and transfer (e.g., improved crop varieties and animal breeds); (iii) improved management practices (e.g., integrated pest management, quality control); (iv) financial instruments (e.g., insurance, savings; inventory credit; catastrophe bonds); and /or (v) public programs (e.g., safety nets). This work is undertaken across the World Bank’s Sustainable Development Network, within several financial sector units and the International Finance Corporation.

Under the program led by the Agricultural Risk Management Team (ARMT), with financial support of the European Union and the Swiss and Dutch Governments, particular emphasis has been placed on supporting market-based risk management approaches and supporting broader applications of agronomic, weather, and price data for ex ante risk management. This program involves technical assistance in identifying and quantifying risks in agriculture and agricultural supply chains, and advisory services and training on alternative risk management approaches and instruments. The World Bank’s support for agricultural risk management is normally provided in conjunction with other development partners, including bilateral and multilateral agencies, regional technical organizations, research and training centers, NGOs, and others.