The Lemonade Crypto Climate Coalition has completed the initial launch of its blockchain-based parametric crop protection program for subsistence farmers.
The Lemonade Foundation led the project, which provided protection for farmers’ livelihoods impacted by weather events during the recent planting season in Kenya.
Smart contracts enable fast cash transfers without the need for filing claims or for human adjusters, lowering costs and avoiding the often months-long timeline associated with the process.
The Lemonade Crypto Climate Coalition partnered with Avalanche, Chainlink, DAOstack, Etherisc, Hannover Re, and Pula to offer its non-profit, instantaneous crop protection program to small-holder farmers in the region at the beginning of the planting season.
Nearly 7,000 farmers signed up to protect their crops during the most recent short rains season from October 2022 to January 2023.
The program covered green grams and sorghum, the principal staple foods grown throughout the region.
At the end of the season, cash transfers were automatically triggered based on area yield data and sent directly to farmers.
The Lemonade Foundation built highly-accurate data models that trigger autonomous smart contracts, providing the best experience for their customers.
The next phase of the project will focus on the upcoming long rains season in Kenya in April, with plans to scale the program throughout the region and expand to support tens of thousands more subsistence farmers facing real climate risks to their livelihoods.
Grace Gombe Mlango, one of the first farmers to sign up for the program and the sole provider for her family, had purchased crop protection in the past but was impacted by the delay in receiving her payout following the lack of rain in that season. When she was introduced to the Lemonade Crypto Climate Coalition, she was inspired to try again.
“Farming is a game of chance, and when I was told about the program, I felt it was better to register because if the season fails, we would be compensated. I registered that same day, which was easy. And given this season, the compensation I received will help me buy food for my family and seeds for the next season,” she said.
President of Ava Labs, John Wu said, “The Lemonaxnieriude Crypto Climate Coalition’s groundbreaking Kenya project built on Avalanche illustrates how blockchain is uniquely positioned to make the world better not only in the future but now.”