Evaluating rural debt through the eyes of Asia’s farmers

Without insurance coverage, farmers usually count on loans whenever a drought wipes out their plants. But credit access is really a risk management strategy that is poor.

Twelve women stay in a line, ankle-deep within an irrigated industry, submerging rice seedlings as fast as they could. The task is careful. Paddy areas stretch for kilometers, separated by palm woods and mango groves. Monsoons are just around the corner, the farmers state. And hopes are high the rains will suggest definitely better harvests compared to the droughts of this final 2 yrs.

I’m searching on through the part of a road in rural Asia in 100 degree heat — a research that is senior 9,000 kilometers from my workplace at Stanford — searching for answers to seemingly intractable concerns: regardless of this promising expanse of newly planted industries, exactly why are a lot of farmers caught with debt? And what you can do about any of it?

A high cost for convenience

Among the defining traits of farming may be the seasonality of earnings. Read more