The Impact of Livestock Insurance Programs on Farmer Income Stability in Mongolia

Abstract

Purpose: The aim of this study was to investigate the impact of livestock insurance programs on farmer income stability in Mongolia.

Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.

Findings: The findings revealed that the impact of livestock insurance programs on farmer income stability was consistent across diverse locations. Farmers participating in these programs, whether in the Midwest United States or rural India, consistently experienced reduced income volatility. The studies consistently point to a positive relationship between livestock insurance participation and income stability, demonstrating that insurance effectively mitigates the financial repercussions of livestock-related risks such as disease outbreaks and extreme weather events. These findings collectively emphasize the potential of livestock insurance programs as an essential tool for bolstering the financial well-being of farmers in various agricultural settings, offering them a safety net against unforeseen losses and enhancing the overall resilience of rural communities.

Implications to Theory, Practice and Policy:  The Portfolio Theory, Behavioral Economics and Agency Theory may be used to anchor future studies on the impact of livestock insurance programs on farmer income stability in Mongolia. These findings contribute to the fields of agricultural economics and risk management by providing empirical evidence of the positive relationship between insurance participation and income stability among farmers. This adds to the body of knowledge on the effectiveness of risk mitigation strategies in agriculture. From a practical standpoint, the results suggest that livestock insurance programs can be a valuable tool for farmers in different geographical contexts, including the Midwest United States and rural India, offering a safety net against income fluctuations. The study further recommends the importance of government support and incentives to promote the adoption of livestock insurance programs among farmers, especially smallholders, to enhance income stability and foster resilience in agricultural communities.