Abstract

 

 

Accepted 12th January, 2015

 

Agricultural insurance business is almost still unavailable in Tanzania. However, evidence shows that in 2011, weather index insurance pilot program was introduced in Bunda district, though not much has been documented in the literature on how this program works in practice. To explore the operationalization as well as the challenges facing it, a collateral information using focus groups was sought from cotton growers so as to assess farmers’ risks and depict comprehensively how this program functions. Findings revealed the program is a drought insurance running in form of contract farming with much of implementation procedures being unfamiliar to majority of farmers. It is essential, as a policy implication, to enhance a thorough understanding of the program operationalization by the farmers for a successful program implementation

 

Keywords: Drought insurance, operationalization, cotton growers, Tanzania