That’s why an Oxfam America emergency response launched in La Pelota last October sought not only to meet people’s immediate needs, but to help them mitigate the risks of their community for the future.

When it rains hard, La Pelota is one of the first communities in the area to flood, in part because a vigorously growing plant called la ninfa clogs the local waterways. The plant is a sign of another problem people face: poor infrastructure for sanitation. Most families rely on pit latrines whose contaminants feed the growth of la ninfa.

In October, Tropical Depression 12-E hit. It rained for almost two weeks straight. On one side of La Pelota the lake overflowed, and on the other side its natural drain spilled its banks.

“It began to rain quite a lot. Little by little, the lake drained, but then the water level rose as it continued to rain,” said Juan Francisco Flores, a 32-year-old community member. “The lake doesn’t flow fast enough through the channel. The water backs up and that’s what floods the community… The stream was flooding on one side and the lake on the other. We were isolated.”

The response from the community to the flooding was well planned and evacuation was timely, due to preparedness work that had been done by Oxfam partner Fundación Maquilishuat (FUMA), in recent years. However, damage to crops was severe.

Together with FUMA and the World Food Programme, Oxfam America launched a food-for-work initiative that not only helped families in La Pelota survive in the first months after the emergency, but reduced the risk they would face in the future. FUMA and citizens of La Pelota decided to clean out the channel to allow the water to flow more easily and prevent flooding. Oxfam provided material to do the work, FUMA provided monitoring and technical assistance, and the families carried out the work.

The project provided people with 100 pounds of corn, 33 pounds of rice, 20 pounds of beans, and a gallon of cooking oil, in exchange for 80 hours of work a month.

“The food-for-work project has been well received. It was very effective to implement this project at this time of year, when people usually don’t have work,” says Sandra Quinteros of FUMA. “There’s been a selection process for the FFW program, with several criteria—that they lost at least 50 percent of their production; that they live on less than two dollars a day; that they have many children or older adults to care for; that they are day laborers; and that they are willing to work.”

The food-for-work project has been implemented in 99 poor communities like La Pelota, in 15 municipalities throughout El Salvador. A total of 3,800 families earned a three-month supply of corn, beans, rice, and oil for a family of five, enabling them to recover from their losses and now live in better prepared communities.

If the rain continued at least there would be pasture for his two cows, guaranteeing their health and ensuring his family would have milk to drink. But the shorter rains, which should have fallen earlier in the season, had failed to come to Keih Tekli. And without them, Mehari was unable to sow his sorghum, one of two main crops he depends on. Instead, he would rely on teff, a tiny grain planted later in the year that is a staple of the Ethiopian diet.

For small-scale producers like Mehari, drought is the enemy—unpredictable and deadly. It’s the hardest part about farming, he says. And it’s one of the reasons that Mehari has joined more than 13,000 others in the Tigray region to buy weather insurance for their crops.

The insurance is part of a rapidly expanding program designed to help some of Ethiopia’s poorest farmers reduce the risk they face from disaster. When rainfall drops below a predetermined threshold, farmers who have bought the insurance receive a payout. Those too poor to pay with cash can trade their labor on community projects in exchange for the insurance. Launched by Oxfam in 2008 with the help of a host of partners including the Relief Society of Tigray, the program, now called the Rural Resilience Initiative, or R4, is set to expand into Senegal and two other countries in partnership with the World Food Programme.

Mehari has participated in the initiative for two years, swapping work—he has been planting tree seedlings in his community—for insurance. The first year he traded 16 days of labor for a premium worth 192 birr, or just over $11. That would have provided him with a payout of 600 birr, or nearly $35. Last year, Mehari invested 25 days of labor for coverage that would have given him a payout worth 800 birr, or more than $46.

That’s not enough to cover all his costs if he loses a harvest, but it’s enough of a buffer, perhaps, to prevent him from sinking deeper into poverty.

"It helps," he says, noting that if drought wiped out his harvest, the insurance would allow him to recover two-thirds of the 1,200 birr he invested in planting.

Divorced and the father of one daughter, Mehari says he had a basic understanding of how insurance works so when the opportunity arose to purchase some, he jumped at it. In his 38 years, he and his family had already experienced far more than their fair share of loss: Of the eight children to whom Mehari's mother gave birth, only two were still alive.

"I knew what insurance was. But the community members were confused and skeptical. How can it work?" he recalls them asking. "I accepted it (the insurance) without hesitation because if the crop fails, for me--it's like a parent's support in a bad situation."

As rain from the roof pooled into fat drops over the door, Mehari contemplated what the future would bring. He had already sowed more than an acre of land with teff seed and planned to plant the rest very soon.

"If the rain continues--like now--it won't be serious," he says of the hardship farmers face because of the lost sorghum season. "But if there is an early exit (of the rain), that will be disastrous."

For Mehari, insurance would soften the blow. But for countless other farmers tilling the rocky soil of Tigray, uncertainty sits heavily on their minds, its weight growing as increasingly erratic weather changes the age-old rules of agriculture.

The pair of oxen alone puts him ahead of many poor farmers in this northern part of the country. Harnessed as a team, the animals give Tadesse the power he needs to plow his fields in a timely manner and to be ready for the rains when they fall.  But if they don’t come, he’s now experimenting with a tool that will soften the blow: weather insurance.

Tadesse, who lives in the village of Hade Alga, is one of the more than 13,000 small farmers who are participating in a new insurance initiative launched by Oxfam and a host of partners, including the Relief Society of Tigray, or REST. The program allows those too poor to have cash on hand  to pay for the insurance by working on environmental improvement projects that benefit the whole community—like planting trees. Tadesse is among the small percent of farmers able to pay with money.

When rainfall drops below a predetermined threshold, insured farmers receive a payout helping them to recover some of their losses from a failed or severely curtailed harvest.

“Everyone in this community is starting to understand the rationale of the insurance, so we want to continue this practice,” said Tadesse, sitting with his wife and two young children in their one-room home on a rainy morning in August. But he admitted that the idea took a little getting used to. “We were skeptical when we heard (about  )it. We were even confused. How can you cover the loss of crops? It’s god’s work.”

After a great deal of discussion among community members, and many questions for REST, the idea began to click with people, Tadesse said. The local belief system holds that if you expect good things to happen, they will, and farmers are beginning to embrace insurance as part of that thinking, he added.

In 2010, Tadesse spent 60 birr—or about $3.50—on insurance for his teff, a staple grain in Ethiopia. As it turned out, the rains were plentiful that year and his harvest was very good, negating the need for a payout. But that didn’t stop him from doubling his investment in insurance the next year, paying 120 birr for a premium that would provide him with 400 birr—or $23,17—to cover his potential losses. The expense felt like a smart move.

“Anything can happen,” said Tadesse. “As security for me, I decided to double it. Even in the future I may double it again. You wish for better (rain), but you also have to accommodate the worst. In the future I don’t know what will happen, so that’s why I’m paying. But if the rain is good, I don’t regret paying that amount of money.”

The insurance has given him a sense of greater security, too, Tadesse said, so much so that he now has the confidence to take out a loan for livestock production. Once the rainy season ended, he planned to borrow money to buy a small herd of sheep and goats.

“If you buy four or eight sheep, they’ll reproduce in a short period of time,” said Tadesse. “It’s a good source of income for my family. It makes our life comfortable.”

With the stability he is striving to create for his family—in an environment made increasingly uncertain by changing weather patterns—Tadesse said he hopes his children will go far in school, an opportunity that stopped for him after fifth grade when he had to quit to work on his family’s farm and help care for his aging parents.

“I’m very confident my children will go further—up to where they can reach,” Tadesse said. “Education helps you use your capacity, not only in farming but in trading—in every part of life. If you’re educated you introduce new ideas into your agricultural practices. You analyze the future. It all needs education.”

And with the bit of security insurance is now providing, the dreams Tadesse has for his family have moved a little closer. Soon, other small farmers in Africa will have a chance at greater security, too:  The weather insurance program, now called the Rural Resilience Initiative, or R4, is set to expand into Senegal and two other countries in partnership with the World Food Programme.

The companies in PREP are: Calvert Investments, Earth Networks, Entergy, Green Mountain Coffee Roasters, Inc., Levi Strauss & Company, Starbucks, and Swiss Re. Other partners in PREP include BSR and Ceres. Oxfam America serves as PREP's secretariat. Read the PREP Mission Statement.

The goals of the Partnership are to:

• Promote practices and economic growth that help both vulnerable communities and business adapt to the impacts of climate change ; and
• Promote public policies that facilitate adaptation efforts to prepare for and respond to the consequences of a changing climate.

Managing risk

From extreme weather events to glacial melt, from water scarcity to rising sea levels—the effects of climate change on global economic stability and global security can no longer be ignored. Even with aggressive mitigation efforts to reduce emissions, the consequences of climate change on communities across the planet are significant. For many, the results are more severe weather-related disasters, increased food and water insecurity, scarce natural resources, and health problems.

Community risks are business risks. On a functional level, the impact of climate change on companies’ global supply chains is already visible. For example, changes in weather patterns affect growing conditions for crops like coffee and cotton. Climate change threatens the global operations of some businesses, such as when severe floods displace families and workers in areas where manufacturing facilities are located. Such climate-related risks, and their links to broader community needs, are just beginning to be understood by the private sector.

Businesses are also just beginning to identify adaptation growth opportunities as the demand for certain products and services increases. For example, increasing water scarcity will necessitate improved and more efficient irrigation technologies. As companies anticipate and respond to these shifts in demand they should look to partner with communities with an aim towards investing in local jobs and improving livelihoods.

PREP partners

In a country where most farmers depend on rain to feed their crops and guarantee their harvests, that question is omnipresent: It's about survival. And there's no sure way to answer it.

But there is a way to manage the uncertainty it breeds, and Biru, with steady steps, is slowly freeing herself from the constraints of an increasingly erratic climate. Her tools? An entrepreneurial drive and—now—weather insurance for her crops through a program that has grown to reach more than 13,000 farmers in Tigray since its launch in Adi Ha in 2009.

Biru, a 50-year-old mother of six children, was among the first farmers in this rocky northern region to invest in the insurance when Oxfam America, together with the Relief Society of Tigray and a host of partners, began offering it as a way to help families build resilience in the face of repeated drought. If there is insufficient rain during a critical period of the growing cycle, farmers will receive a payout for the crop they have insured.

And even those too poor to have cash on hand can get insurance: They can pay for their premiums in exchange for working on projects that help their communities reduce the risk of future disasters , such as by planting trees to preserve the topsoil. Of the 13,195 farmers now insured, 91 percent of them, or 12,064, are trading their labor for their premiums. And many of the households that have bought insurance are headed by women—3,610 of them.

Biru has been able to pay for her insurance with cash. This year, she bought a package for 200 birr, or about $11.75. It will cover her teff, a tiny grain and a staple of the Ethiopian diet used to make a bread called injera.

A smart investment

In Adi Ha, the weather has not been severe enough—yet—to trigger a payout. But Biru is convinced that investing in insurance is a smart move and that the program should be scaled up to reach farmers in other parts of Ethiopia. Without the cushion insurance provides, families who lose their harvests and have nothing to fall back on could be forced to migrate far from their homes or to sell precious household resources—like a cow—to buy food.

"This insurance is very good," said Biru. "It's saving our assets in a bad year."

And perhaps it's that confidence that is also helping her take other well-considered risks that are allowing her to build a more secure future for her family.

In 2009, the first year weather insurance was available, Biru joined a group of 10 farmers and together they bought a pump to irrigate some of their crops. Her contribution was 4,000 birr—or about $235. In 2010, with the proceeds from an abundant harvest of peppers, Biru was able to pay off the loan for her share of the pump.

Soon after, she took an even bigger plunge: With a new loan, she invested 14,000 birr, or about $823, in her own pump, available to use whenever she needs it. In August, she had already reaped 2,000 birr-worth of peppers from her field, and was looking forward to continuous harvests in the future.

"This is more productive compared to maize," said Biru. "Maize you harvest once. This you harvest every week."

Peppers won't be her only cash crop from this newly irrigated land. Scattered amidst the plants are 60 orange tree seedlings and 30 mango tree seedlings.

"If we manage it very well, we can start the first harvest (from the trees) after four years," Biru said.

Challenges, still

For all Biru's progress, farming in Tigray is not an easy undertaking. And one of the biggest challenges, she said, is the cost of fertilizer. The price keeps climbing.

"It's 1,000 birr per quintal (or about $58 for 220 pounds)," said Biru, recalling when it was a fraction of that price two decades ago. "Our land can't perform well without fertilizer, but fertilizer is very expensive…Most of our money is invested in fertilizer."

But most of her pride is invested in her children: all six of them have been able to attend school. Her oldest son has a degree in accounting and a daughter has a degree in engineering. Three of the others are still making their way through, while a middle son has decided to stop his education and assume—eventually—responsibility for his parents and the land they have worked so hard to cultivate.

Weather insurance may make his job, and the job of countless farmers like him, easier in the years ahead. The initiative is now set to expand into three new countries with the help of the World Food Programme. And its focus has broadened to promote a variety of tools that will help rural families build their resilience including access to credit, the encouragement to save, and steps to reduce the risks of disaster.

It's these experiences that have helped convince us that our current system of international food aid needs to be reformed. It needs to be faster, more flexible and cheaper. Instead of dumping surplus domestic production as "in kind" food aid, donors should provide cash for governments and aid agencies to buy food locally. This is usually more efficient and better for local agriculture.

Here are some examples of how this kind of aid can work during humanitarian crises.

Cereal banks

In the North Bank Division of Gambia food shortages are a constant threat as people struggle to manage the delicate balance between their needs and what the environment can provide. Will there be enough rain to allow crops to grow? Will locusts devour whatever villagers manage to coax from their fields?

A simple solution promoted by Oxfam's local partner, Agency for the Development of Women and Children, or ADWAC, takes the edge off those questions: If villagers had a way to save some of their food and seeds at the end of each harvest, they could have a reserve to fall back on during times of shortage. The trick was to get started.

ADWAC's plan called for building and stocking four cereal "banks"—tidy white structures the size of small houses which can hold up to 30 metric tons of cereals—located at strategic points around the communities. Villagers then formed committees to manage the stored supplies. Those who borrow from the storehouse during a food shortage are obliged to repay the loan and tack on a little extra, too, so that the project can grow.

Now, if drought should shrivel their crops or pests consume them, villagers can turn to that bank of grain, avoiding the need to eke what they can from an overstrained environment. The bank will help them weather tough times.

Inside the Dasilami storehouse one day last year, the sweetness of harvested grains filled the hot dry air. Heavy sacks—they weigh just under 200 pounds—stuffed with corn and millet were stacked nearly to the ceiling. Outside, in the shade of a tree laden with mangoes, Nyima Filly Fofana, a mother of nine children and an organizer for one of the cereal bank management committees, talked about what it was like one year recently when both locusts and drought hit the area.

"We experienced a very bitter time," she said. "The family was hungry." In times of food shortages, Fofana's family manages by selling the salt she harvests from mud flats near her home and by eating whatever vegetables they can grow in their garden. But if such trouble should strike again, this time Dasilami has the seeds of a solution—one that can now spread to other villages, too.

"Our worries will be temporarily solved," said Fofana, clapping her hands at the thought of the white building gleaming there in the sun, stocked with grain. "We'll have food. Therefore our families will not cry. Our stomachs will no longer go empty."

Vouchers revitalize markets

When a catastrophic earthquake hit northern Pakistan in the fall of 2005, it left three million people homeless and more than two million people needing food aid to survive the winter.

Around the devastated town of Balakot in the Northwest Frontier province, Oxfam organized a program that provided families with vouchers to use among a selected group of merchants. Not only did the vouchers offer earthquake survivors the chance to make their own choices about which goods would best meet their needs, they helped to revitalize local markets by boosting commerce and allowing traders to rebuild their businesses.

For one young boy, the program helped restore a sliver of normalcy to his life by allowing him to buy familiar goods.

"My father was killed," he told an Oxfam staffer at a general store in Balakot. "My mother is very ill. She has asked me to buy flour, black tea, and sugar."

The program, which also included the distribution of some cash and building materials, reached more than 48,000 people, giving them a real say in the kind of help they received.

Culling herds, helping traders

Before a lack of rain shriveled the pastureland in Niger and swarms of migratory grasshoppers stripped it clean, Koumba Yacouba's family owned a magnificent herd of cows that was 200 head strong. But drought and pest infestation wiped them out in 2005—a story repeated across Niger where untold numbers of herders all depend on their animals for food. The shortage of fodder was the worst in Niger's history.

High cereal prices and decimated herds combined to create a food crisis for 3.6 million people—nearly one-third of Niger's population.

In response, Oxfam and one of its local partners, the Association de Revigoration d'Élevage au Niger, or AREN, set up a $2 million program in southeastern Niger to help nearly 131,000 people. Their weakened herds figured prominently in the effort. The goal was to help reinvigorate the local economy by stimulating area markets.

For a fair price, Oxfam bought cattle that were too emaciated for herders to sell. Cattle prices had plummeted, falling to 90 percent lower than they had been before the crisis. Even healthy animals were fetching only a fraction of their former value: Strong bulls that once went for $500 were being sold off for as little as $18.

Oxfam began purchasing cows from local breeders for $53 a head. That money allowed people to buy food from local traders to feed both their families and their remaining animals.

In addition, Oxfam had the cows it purchased slaughtered in the villages and the meat inspected by vets to make sure it was fit for consumption. In exchange for some of the meat, village women worked to dry or fry the beef which was then made available to hungry families who traded their vouchers for it. People earned the vouchers by working on community improvement projects such as the construction of small reservoirs to catch and store rainfall.

"Oxfam's response is stimulating the economy by trying to use local markets," said Mike Delaney, Oxfam America's director of humanitarian response.

"We cannot believe that we are now able to eat meat," said Khadydiatou Labarang, whose daily diet had been a single meal of millet before Oxfam initiated the program.