01 If both crop insurance and irrigation improve in an agricultural region but market access remains poor, why may population retention remain lower than expected?
Answer and explanation
Correct answer: A. Low market returns may limit livelihood growth despite reduced production risk
Explanation: Insurance and irrigation solve different agricultural problems. Insurance can reduce the financial loss caused by crop failure, while irrigation can make production more regular by reducing dependence on rainfall. However, neither measure guarantees good income if farmers cannot reach profitable markets.
Poor market access may mean high transport costs, delayed sales, and low farm-gate prices. Even with reliable production and lower risk, households may find farming unable to provide attractive livelihoods, so younger people may leave. Option A is therefore correct. Insurance does not automatically build roads or buyers, irrigation does not remove transport costs, and population is influenced by more than crop output alone.