Farmers’ subsistence in the region of Bougouni, Mali depends heavily on their cotton revenue. While cotton is a profitable activity on average, bad yields often leave small cotton growers in debt with no other alternative but to sell draft animals or withdraw their children from school. Instruments that would help farmers to better smooth their income over time could substantially increase their welfare. In this context, we designed an area based yield insurance product for cotton producers with the objective to reduce farmers’ income fluctuation.
