The fourth work package builds on the inputs from the three other WPs of the ARISE project. Based on the inputs provided by the WP3 providing the procurement and contractual frameworks tying producers with crop buyers, together with the risk metrics produced with the joint inputs of WP 2 and WP 3, short-to-long term financial risk sharing instruments will be studied within case study agricultural supply chains.
The financial risk sharing instruments will enable to secure the create added value from the adoption of sustainable and climate resilient cropping practices and water management solutions. The financial transfer of risk enables to secure the contractual terms tying crop buyer and farmers, and the added-value derived from the adoption of optimum climate resilient and sustainable solutions.
The structuring of the financial risk transfer instruments is also carried out in order to encode the inclusiveness of value chains where farmers and smallholder farmers welfare and risk taking is equitably shared with crop buying companies and financial institutions. The second stream of the work package is focused on monitoring and evaluating the impact deriving from the experimentation and implementation of different agricultural supply chain business models corresponding financial risk sharing instruments.
The impact evaluation will enable to provide insight into the effect of different supply chain configurations and financial risk sharing instruments into the (i) decision making to engage into value chains, and (ii) variations of welfare of farmers and companies.
The work package activities will be carried out in close collaboration with industrial partners from the financial and reinsurance industry, as well as with the different key stakeholders involved from crop production (farmers, farmer organizations) to purchasers (intermediaries, manufacturers, retailers), and input providers, as well local providers of financial services.