Blockchain-Based Smart Contracts to Provide Crop Insurance for Smallholder Farmers in Developing Countries

Abstract

Agricultural insurance can help smallholder farmers in developing countries deal with risks that are too large for them to manage on their own. Thus, significant welfare gains can be achieved by increasing smallholder farmers’ access to such insurance. Estimates also suggest that by removing farming risks through crop insurance, it is possible to increase smallholder farmers’ investments and income by 20%–30%.1