Innovative tools to address drought risk in grazing lands

Drought spells can impose severe impacts in most vulnerable farms. It is well known that uninsured exposure exacerbates income inequality in farming systems. However, high administrative costs of traditional insurance hinder small farmers? access to risk management tools. The existence of moral hazard and systemic risk prevents the implementation of traditional insurance programs to address drought risk in rural areas. Innovative technologies like satellite images are being used to derive vegetation index which are highly correlated with drought impacts. The implementation of this technology in agricultural insurance may help to overcome some of the limitations of traditional insurance. However, basis risk has been identified as one of the main problems that hinder the acceptance of index insurance. In this paper we focus on the analyses of basis risk under different contract options in the grazing lands of the Araucanía region. A vegetation index database is used to develop an actuarial insurance model and estimate risk premiums for moderate and severe drought coverage. Risk premium sharply increases with risk coverage. In contrast with previous findings in the literature, our results are not conclusive and show that lowering the coverage level does not necessarily imply a reduction in basis risk. Further analyses of the relation between contract design and basis risk is a promising area of research that may render an important social utility for most vulnerable farming systems.

Tree and grazing influence on herbaceous pasture diversity in the Dehesa agroforestry system

Mediterranean Dehesas are one of the European natural habitat types of Community interest (43/92/EEC Directive), associated to high diversity levels and producer of important goods and services. In this work, tree contribution and grazing influence over pasture alpha diversity in a Dehesa in Central Spain was studied. We analyzed Richness and Shannon-Wiener (SW) indexes on herbaceous layer under 16 holms oak trees (64 sampling units distributed in two directions and in two distances to the trunk) distributed in four different grazing management zones (depending on species and stocking rate). Floristic composition by species or morphospecies and species abundance were analyzed for each sample unit. Linear mixed models (LMM) and generalized linear mixed models (GLMMs) were used to study relationships between alpha diversity measures and independent factors. Edge crown influence showed the highest values of Richness and SW index. No significant differences were found between orientations under tree crown influence. Grazing management had a significant effect over Richness and SW measures, specially the grazing species (cattle or sheep). We preliminary quantify and analyze the interaction of tree stratum and grazing management over herbaceous diversity in a year of extreme climatic conditions.

Climate and grazing control nurse effects in an Ecuadorian dry shrubby community

Positive plant interactions have strong effects on plant diversity at several spatial scales, expanding species distribution under stressful conditions. We evaluated the joint effect of climate and grazing on the nurse effect of Croton wagneri, by monitoring several community attributes at two spatial scales: microhabitat and plant community. Two very close locations that only differed in grazing intensity were surveyed in an Ecuadorian dry scrub ecosystem. At each location, two 30 × 30-m plots were established at four altitudinal levels (1500, 2630, 1959 and 2100 m asl) and 40 microsites were surveyed in each plot. Croton wagneri acted as community hubs, increasing species richness and plant cover at both scales. Beneath nurses mean richness and cover values were 3.4 and 21.9%, and in open areas 2.3 and 4.5%, respectively. Magnitude of nurse effect was dependent on climate and grazing conditions. In ungrazed locations, cover increased and diversity reduced with altitude, while grazed locations showed the opposite trend. In ungrazed plots the interactions shifted from positive to negative with altitude, in grazed locations interactions remained positive. We conclude that the nurse effect is a key mechanism regulating community properties not only at microsite but also at the entire community scale.