The Weather Risk Management Facility (WRMF) is a joint initiative by the World Food Programme (WFP) and the International Fund for Agricultural Development (IFAD) established in 2008 to reduce smallholders’ vulnerability to weather and other risks that limit agricultural production. It aims to encourage and protect investments in smallholder agricultural production, and enhance food security.
The primary activity is Weather Index-Based Insurance.
To apply, there is an insurance contract based on an objective parameter (e.g. measurement of rainfall or temperature) at a defined weather station during an agreed time period. Pre-feasibility assessment is done by WFP and IFAD consultants, which includes:
- Findings of the preliminary assessment (including a basic diagnosis of access to financial services in the country);
- Overall natural-hazard vulnerability profile of the country;
- Vulnerability and risk profile of smallholders in the country (e.g. numbers, income levels, sources of income, crops, rainfed/irrigated agriculture);
- Availability of relevant historical and real-time weather data and infrastructure, including capacity and technology gaps;
- Availability of relevant historical agricultural data;
- General demand and supply of financial services;
- Insurance culture in rural areas-particularly for agriculture
Contact technical advisors from IFAD and WFP for more information.