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.
Brennan, Marnie L. (author), Wright, Nick (author), Wapenaar, Wendela (author), Jarratt, Susanne (author), Hobson-West, Pru (author), Richens, Imogen F. (author), Kaler, Jasmeet (author), Buchanan, Heather (author), Huxley, Jonathan N. (author), and O'Connor, Heather M. (author)
Format:
Journal article
Publication Date:
2016-10-11
Published:
United Kingdom
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 169 Document Number: D08767
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 151 Document Number: D10100
Journal Title Details:
Volume 64. : pgs. 61-114
Notes:
Print ISBN: 978-3-319-51721-9
Online ISBN: 978-319-51721-6, Pages 61-114 in Stevens, J. (ed), Impulsivity. Nebraska Symposium on Motivation, Volume 64.
Book series., Author suggests: "Meaning clearly influences people's choices; otherwise, framing and priming would not work. Culture is probably the most significant source of frames and primes. ... For southwestern Malagasy and probably for all humanity, the meaning behind unpredictability and anticipation relates to a clockwork understanding of interacting factors that are ultimately influenced by God, ancestors, and other supernatural forces.
Online from AgEconSearch., Authors examined farmers' reluctance to participate and adopt insurance involving climate, crops, and rainfall. They also recommended needed information for farmers about the purpose of such insurance, as well as financial support.
