Via journal online., Agriculture is inherently a risky enterprise because of its dependence on rainfall. To mitigate
risks, farmers diversify crops and enterprises, maintain stabilization account or resort to the sale of assets. Crop insurance is a complementary institutional mechanism that aids farmers to cope with risks better.Considering the importance of crop insurance in risk mitigation, this paper using data from a large-scale farmers’ survey we identify the factors that influence farmers’ decision to buy crop insurance and subsequently assess its impact on farm income, production expenses and productive investments in agriculture. Farmers’ adoption of crop insurance is low— 4.80% kharif season and 3.17% in the rabi season mainly on account of lack of awareness about insurance products. Nevertheless, the probability of adoption of insurance is higher for those who experience higher crop loss and have some formal training in agriculture. The subsidy on premium also positively influences crop insurance uptake decisions. On the other hand, the factors like the lower social status, tenant farming and exposure to deficit-rainfall in the previous year are negatively associated with the decision to insure. The results on the impact of insurance are not conclusive to prove that insured farmer subsumes higher risks compared to the uninsured.
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 116 Document Number: C11996
Journal Title Details:
1 page
Notes:
RIRDC completed projects in 1997-98:human capital, communications and information systems, Rural Industries Research & Development Corporation (RIRDC), Barton, ACT, Australia, 1998
Wimberley, Ronald C. (author) and Thompson, Alton (author)
Format:
Book chapter
Publication Date:
2002
Published:
USA: Praeger, Westport, Connecticut.
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Document Number: C37084
Notes:
See C37075 for original, Pages 117-124 in Ronald C. Wimberley, Craig K. Harris, Joseph J. Molnar and Terry J. Tomazic (eds.), The social risks of agriculture: Americans speak out on food, farming and the environment. Praeger, Westport, Connecticut. 163 pages.
Van Winsen, Frankwin (author), Wauters, Erwin (author), Lauwers, Ludwig (author), De Mey, Yann (author), Van Passel, Steven (author), and Vancauteren, Marc (author)
Format:
Paper
Publication Date:
2011-08
Published:
International
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 186 Document Number: D00651
Notes:
Paper presented at the European Association of Agricultural Economists (EAAE) 2011 Congress, Zurich, Switzerland, August 30-September 2, 2011. Via AgEcon Search. 10 pages.
