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.
8 pages, A spatial analysis of variation in return on investment for crop insurance showed that West Coast wine grape growers are more inclined to use insurance to maximize short-term net returns than to protect against cash flow shortages. Growers would benefit from knowing that even if crop insurance does not maximize short-term net returns, it increases the revenue floor, thereby helping prevent cash flow shortages and vineyard failure. With crop insurance as the backbone of the U.S. agricultural safety net, an understanding of factors that drive variation in crop insurance participation can improve agricultural Extension agents' ability to offer programming on crop insurance issues. Additionally, agents can use publicly available data to replicate the analysis described in this article for other insured crops.
8pgs, In many studies, communication and social cognitive theories have been used to investigate people's behaviors toward agricultural insurance programs resulting in varied conclusions on how and why people react to such programs. However, few of them have explicitly investigated the role of social cognitive theory in escalating insurance literacy levels on agriculture and cultural factors. Thus, the purpose of this study is to identify and analyze the behavioral factors of tidal swampland farmers in Barito Kuala Regency, South Kalimantan province, towards agricultural insurance in the perspective of analyzing farmers' knowledge of agricultural insurance products and determinants of community behavior. Under the instrumental case-study research design, the data were collected through interviews and Focus Group Discussion (FGDs) with 35 informants, consisting of the Head of the South Kalimantan Provincial Agriculture Service and the Barito Kuala District Agriculture Service, opinion leaders, academics, representatives of farmer groups, and farmers. Documentation data related to the implementation of the agricultural insurance program were used to complete the interview and FGDs data. The results of this study indicate that tidal swampland farmers are trapped in hoax information or negative issues related to Agricultural Insurance which makes them reluctant to participate in agricultural insurance. Farmers prefer to be resigned and surrender to the state of their agricultural land than to participate in agricultural insurance. Besides, farmers feel there is no point in participating in agricultural insurance, especially those who think the registration and insurance claim process is convoluted. Low insurance literacy is a key problem of the misinformation that is formed.
12 pages. Located on pages 17-28 of pdf., The study assessed the level of awareness and determined the level of participation of fish farmers in Agricultural Insurance Scheme (AIS) with a view to improving on the level of awareness and consequently participation. The study adopted the survey method of research. The study population comprised all the 1,728 registered fish farmers in Ondo State. Only 295 respondents were sampled from the population using the Raosoft sample size calculator. Multi-stage sampling procedure was adopted to distribute the sample population among the Local Government Areas (LGAs). Two Local Governments Areas (LGAs) were purposively selected from each of the four zones based on the prominence in fish farming. Second stage involved random selection of two communities each from the selected LGAs. At the last stage, fish farmers register was used to proportionately distribute the farmers to LGAs. The results showed the mean age of fish farmers to be 44.6±10.1years and majority (83.4) were married. The mean household size was 5±2 and about 96% was able to read and write. The mean years of fish farming experience was 13.54±11.9 and all of them were smallholders. About 70.5% were aware of AIS but only 15% were under fish policy cover for the last five years. Majority (82.3%) had moderate participation level with only 4.4% with high level of participation. There was strong correlation (R = 0.759) between the variables investigated and level of participation. Also three variables age, contact with extension and awareness regressed positively while number of information sources and household size regressed negatively with level of participation. It was concluded that despite the high level of awareness, level of participation was low.
