Rural livelihoods in developing countries are increasingly vulnerable to risks posed by weather and climate. Droughts can reduce a farmer’s productivity for many years because farmers often sell assets that they need to farm, such as draught animals, in order to survive the poor harvest. Also, farmers may reduce investments in good seasons because they fear that they will lose the investment if a drought occurs. Farmers need effective strategies for managing the risks posed by climate in order to attain food security and improve their livelihoods (Barnett et al 2008).