Analysis of the Impact of Climate Risk on the Productivity and Financing of the Agricultural Sector of Honduras

Abstract

This study focuses on analyzing the impact of climate risk on the productivity and financing of the agricultural sector in Honduras. Through exhaustive research, the main factors that explain climate risk and their interaction with Honduran agricultural productivity were identified, analyzing in parallel their subsequent implications in relation to their financing. The main objective of the research involves the analysis of the impact of climate risk on the productivity and financing of the agricultural sector in Honduras, under the scheme of its main products, based on its trade balance and food security; identifying their vulnerabilities and proposing mitigation and adaptation strategies that improve the resilience of the sector to the effects of climate change. The present correlation between climatic variables, precipitation and temperature in the agricultural productivity of corn, coffee, sugar cane and banana crops is exposed, as well as their impact on bank and non-bank financing of the latter; Likewise, the main geographical areas of Honduras with the greatest risk exposure are exposed based on their main productive sectors.