Rapid integration of global agricultural markets and subsequent cropland displacement in recent decades increased large-scale tropical deforestation in South America and Southeast Asia. Growing land scarcity and more stringent land use regulations in these regions could incentivize the offshoring of export-oriented commodity crops to sub-Saharan Africa (SSA). We assess the effects of domestic- and export-oriented agricultural expansion on deforestation in SSA in recent decades.
It is widely acknowledged that unmitigated risks provide a disincentive for otherwise optimal investments in modern farm inputs. Index insurance provides a means for managing risk without the burdens of asymmetric information and high transaction costs that plague traditional indemnity-based crop insurance programs.
Forest cover in sub-Saharan Africa declined by nearly 10 per cent between 2000 and 2010. Of this loss, 75 per cent was caused by the conversion of forest to agriculture, largely for food production to serve rapidly growing domestic food demand.