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Willingness To Take Agricultural Insurance By Cocoa Farmers In Nigeria

Author

Listed:
  • Falola, Abraham
  • Ayinde, Opeyemi Eyitayo
  • Agboola, Babatola Olasunkanmi

Abstract

This study examines willingness to take agricultural insurance by cocoa farmers in Nigeria. A three-stage sampling procedure was used to select 120 cocoa farm households and structured questionnaire was used to elicit data from the respondents. The data were analysed with descriptive statistics and probit regression model. Results showed that 77.5% of the farmers were aware of Agricultural Insurance but only 50% were willing to take it. The average willingness-to-pay (WTP) for Agricultural Insurance by the respondents was N11,087.5/ha ($69.85/ha). The significant variables influencing willingness to take agricultural insurance by the farmers were age of household head, educational level, access to extension service and farm income. The study therefore recommends encouraging young well educated people to engage in cocoa farming, overhauling agricultural extension services as well as provision of insurance services to farmers at affordable rate.

Suggested Citation

  • Falola, Abraham & Ayinde, Opeyemi Eyitayo & Agboola, Babatola Olasunkanmi, 2013. "Willingness To Take Agricultural Insurance By Cocoa Farmers In Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1(1), pages 1-12, July.
    • Handle: RePEc:ags:ijfaec:156837
    DOI: 10.22004/ag.econ.156837
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    References listed on IDEAS

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    1. Laura Onofri & Samuele Trestini & Vasco Boatto, 2020. "Who Is Afraid of Biotic Threats? An Econometric Analysis of Veneto Wine Grape Farmers’ Propensity to Insure," Agriculture, MDPI, vol. 10(8), pages 1-9, August.
    2. Ellis, Emmanuella, 2017. "Factors Affecting Risk Management Strategies To Climate Change Effects In Ghana," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(1), January.
    3. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 276443, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Yang, Min-Hsien & Lu, Richard, 2022. "A Study on Revenue Insurance Buying for Custard Apple in Taiwan: Perspectives from Prospect Theory and Ambiguity Preference," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 10(2), April.
    5. Njue, E. & Kirimi, L. & Mathenge, M., 2018. "Uptake of Crop Insurance among Smallholder Farmers: Insights from Maize Producers in Kenya," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277023, International Association of Agricultural Economists.
    6. Mbonane, Nobuhle Duduzile, 2018. "An analysis of farmers’ preferences for crop insurance: a case of maize farmers in Swaziland," Research Theses 334771, Collaborative Masters Program in Agricultural and Applied Economics.
    7. Yeboah, Augustine Kwadwo & Obeng, Camara Kwasi, 2016. "Effect of financial literacy on willingness to pay for micro-insurance by commercial market business operators in Ghana," MPRA Paper 70135, University Library of Munich, Germany.
    8. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 265580, Collaborative Masters Program in Agricultural and Applied Economics.
    9. OKPUKPARA, Benjamin Chiedozie & UKWUABA, Ikenna Charles & ADEBAYO, Olusegun, 2021. "Determinants Of Access And Extent Of Use Of Agricultural Insurance Schemes By Small-Scale Farmers In Kogi State Nigeria," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 24(1), March.
    10. Santoshi Malla & Uttam Rosyara & Bibash Neupane & Birat Sapkota, 2021. "Feasibility Study Of Organic Vegetable Farming In Baitadi District," Food and Agri Economics Review (FAER), Zibeline International Publishing, vol. 1(2), pages 88-92, June.
    11. Mekonnen, Tigist, 2017. "Willingness to pay for agricultural risk insurance as a strategy to adapt climate change," MERIT Working Papers 2017-028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Md. Monirul Islam & Shusuke Matsushita & Ryozo Noguchi & Tofael Ahamed, 2022. "A damage-based crop insurance system for flash flooding: a satellite remote sensing and econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 47-89, February.
    13. Tesfaye, Meneyahel Z. & Balana, Bedru B. & Bizimana, Jean-Claude, 2021. "Assessment of smallholder farmers’ demand for and adoption constraints to small-scale irrigation technologies: Evidence from Ethiopia," Agricultural Water Management, Elsevier, vol. 250(C).
    14. Shaibu, U.M. & Ibitoye, S.J. & Ibrahim, M.K. & Shaibu, Y.A., 2020. "Modeling the Factors that Influence Farmers’ Participation in Agricultural Insurance Scheme in Kogi State, Nigeria: Implications for Agricultural Policy," Nigerian Agricultural Policy Research Journal (NAPReJ), Agricultural Policy Research Network (APRNet), vol. 7(1), May.

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