Rain is an important factor as farmers’ crop calendar revolves around the rainfall pattern.

Now, a report from Energy Policy Institute, University of Chicago, has presented groundbreaking insights from Telangana.

It says that one-third of farmers plan their crops on the basis of rainfall forecast.

Optimistic farmers reduce their investments by 22% if the forecast talks about “bad news”, as per the study.

They also cut expenditures by 10% and reduce land area to be cultivated on the basis of the information received.

On the other hand, farmers with similar beliefs but no information increase their land cultivation area.

Agricultural output, crop sales and profits of optimistic farmers take a hit but they find other ways to make money.

But positive forecast allows them to cut their debt in half, leading to net savings.

The study also said these farmers were able to diversify their activities – and were better off due to forecast.

It further talks about farmers’ insurance and how it changes their behaviour even if forecast data is not available.

Combining forecasts and insurance could enhance climate adaptation strategies for farmers.

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