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Determinants of Crop Insurance Uptake by Tobacco Farmers in Zimbabwe

Author

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  • Lawrence Dumisani Nyathi

    (National University of Science and Technology, PO Box AC 939, Ascot, Bulawayo, Zimbabwe.)

  • Nothando Tshuma

    (National University of Science and Technology, PO Box AC 939, Ascot, Bulawayo, Zimbabwe.)

Abstract

Agriculture serves as the cornerstone of Zimbabwe’s economy, supplying more than 60% of the raw materials needed by various industries. Additionally, it constitutes 40% of the country’s total exports, making it the primary contributor to export revenue. Notably, tobacco accounts for 50% of these exports, solidifying its position as the largest contributor within the agricultural sector. The remarkable growth in tobacco production can be attributed to small-scale producers who gained empowerment through the Fast Track Land Reform Program (FTLRP). Despite the prosperity and expansion observed in tobacco production, an inherent risk persists, particularly among new farmers. The absence of safety nets to cushion against adverse events poses a significant challenge in this critical sector. Consequently, this study aims to examine the factors influencing crop insurance adoption by tobacco farmers. We employed a concise and validated closed-ended questionnaire, collecting data from 121 farmers. Subsequently, we conducted an econometric analysis using a logistic model in STATA V 11 to explore the determinants of crop insurance uptake.

Suggested Citation

  • Lawrence Dumisani Nyathi & Nothando Tshuma, 2024. "Determinants of Crop Insurance Uptake by Tobacco Farmers in Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 1037-1049, June.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:6:p:1037-1049
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    References listed on IDEAS

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    1. Singerman, Ariel & Hart, Chad E. & Lence, Sergio H., 2010. "Demand For Crop Insurance By Organic Corn And Soybean Farmers In Three Major Producing States," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60935, Agricultural and Applied Economics Association.
    2. 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.
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