Adaptive capacity contributing to improved agricultural productivity at the household level: Empirical findings highlighting the importance of crop insurance

Understanding the factors that give rise to greater or lesser adaptive capacity among households with in a community could allow government interventions to target the right groups of people. In this paper we study such factors, making use of a household survey administered in the Indian state of Odisha. In the survey, we queried respondents for the adaptations that they had engaged in to deal with the risk of drought, as well as a number of indicators for adaptive capacity taken from the literature. We found a large number of indicators of adaptive capacity to correlate with one or more adaptations taken. However, many of these indicators, while increasing the likelihood that one adaptation would be taken, also decreased the likelihood that another would be taken, and hence were not unambiguous determinants of greater adaptive capacity in general. One indicator, access to crop insurance, stood out as particularly effective: it correlated with an increased likelihood of engaging in two separate yield-raising adaptations, and correlated with a decreased likelihood of engaging in two additional adaptations that would have the effect of reducing yields. The results suggest that further attention to crop insurance may be warranted, as well as further research to determine if the other indicators may be effective in other contextual settings.