IJREH | Determination of Amount Poultry Farmers are ready to pay for Insurance: Evidence from Nigeria

Indexing and Abstracting

Determination of Amount Poultry Farmers are ready to pay for Insurance: Evidence from Nigeria

J. A. Ojogbane , T.M. Gbigbi

International Journal of Rural Development, Environment and Health Research(IJREH), Vol-6,Issue-6, November - December 2022, Pages 18-24, 10.22161/ijreh.6.6.4

Download | Downloads : 1 | Total View : 748

Article Info: Received: 30 Oct 2022; Received in revised form: 18 Nov 2022; Accepted: 24 Nov 2022; Available online: 02 Dec 2022

Abstract:

The study x-ray the amount poultry farmers are ready to pay for insurance. Input-output data were collected from 120 farmers randomly selected from 10 communities. The data generated were subjected to descriptive and inferential statistics. The mean annual flock size per farmer before and after possession of insurance policy was 1255 Birds and 2247 Birds respectively. Investigation into the awareness level showed that more than half of the poultry farmers (83.3%) were aware of insurance. Around 56.7% of the respondents were ready to pay for insurance. The contributory factors of the amount farmers are ready to pay were education, income, awareness, experience and flock size. The major constraints affecting the readiness of farmers to pay for insurance were insufficient fund, high premium, size of farm and payment of indemnity. The readiness constraint index (WCI) was 79%.

Keywords:

Truncated regression, amount, poultry farmer, readiness

References:

[1] Azubuike S. (2015). Rural insurance: Do evidence exist for insurance penetration in Nigeria? Journal of Social Sciences and Humanities,2: 250â€“256.
[2] Bamolefhe, O.S. (2020). An Assessment of smallholder livestock keepersâ€™ readiness to pay for cattle Insurance Attributes in Botswana: The case of Central District (Master Dissertation University of Nairobi, Kenya).
[3] Boateng, S., Amoaka, P., Poku, A. A., Appiah, D.O., Garsonu, E. K. (2016). Household readiness to pay for solid waste disposal services in urban Ghana: The Kumasi metropolis situation. Ghana Journal of Geography, 8(2): 1-17.
[4] Budhathoki, N.K, Lassa, J.A, Pun,S and Zander,K.K (2019). Farmersâ€™ interest and readiness-to-pay for index-based crop insurance in the lowlands of Nepal. Land Use Policy,85:1-10.
[5] Chand, S., Narayan, P and Chaudhary, K.R(2018).Sources of risks in livestock production and their management strategies in northern India. Indian Journal of Animal Sciences, 88 (5): 612â€“619.
[6] Fonta, W.M., Sanfo, S and Kedir, A.M (2018). Estimating farmersâ€™ readiness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso. Agricultural and Food Economics, 6. 11. https://doi.org/10.1186/s40100-018-0104-6.
[7] Gbigbi, T. M. and Ndubuokwu, G.O, (2022). Determinants of agricultural insurance patronage among crop farmers in Delta north agricultural zone, Delta State, Nigeria. Ege Ãœniv. Ziraat Fak. Derg., 59 (2):235-248.
[8] Gbigbi, T.M. (2021). Financial benefits analysis of broiler chicken farm operators in Delta State Nigeria. Black Sea Journal of Agriculture, 4(2): 58-65.
[9] Gbigbi, T.M (2017). Are There Road Blocks to Access Micro-Credit From Selected Microfinance Banks in Delta State, Nigeria? Implications for Small Scale Farmers Sustainability! Journal of Food Industry, 1(1):1-16.
[10] Haibin Dong , Saheed Olaide Jimoh , Yulu Hou and Xiangyang Hou (2020).Readiness to pay for livestock husbandry insurance: An empirical analysis of grassland farms in Inner Mongolia, China. Sustainability,12, 7331; doi:10.3390/su12187331 . http://www.mdpi.com/journal/sustainability.
[11] Lichtenberg E and Iglesias, E (2022). Index insurance and basis risk: A reconsideration. Journal of Development Economics,158, https://doi.org/10.1016/j.jdeveco.2022.102883.
[12] Mehrabi, Z., Gill, M., Wijk, M.T, Van, Herrero, M and Ramankutty, N (2020). Livestock policy for sustainable Development. Nature Food 1, 160â€“165.
[13] Meuwissen, M.P.M., Mey, Y.D. and van Asseldonk, M (2018), Prospects for agricultural insurance in Europe, Agricultural Finance Review, 78(2): 174-182.
[14] Nhemachena, C.; Matchaya, G.; Nhemachena, C.R.; Karuaihe, S.; Muchara, B and Nhlengethwa, S (2018).. Measuring baseline agriculture-related sustainable development goals index for Southern Africa. Sustainability 10:849. https://doi.org/10.3390/su10030849.
[15] Okpukpara , B.C, Ukwuaba, I.C and Adebayo, O (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, XXIV (1): 88-97.
[16] Pant, P.K, Dutta, J.P, Kattel, R.R and Dhungana, S.M (2019). Farmers readiness to pay for crop insurance in Chitwen District, Nepal. The Journal of Agriculture and Environment, 20:93-99..
[17] Paudel, Y., Botzen, W.J.W and Aerts, J.C.J.H (2015). Influence of climate change and socio-economic development on catastrophe insurance: a case study of flood risk scenarios in the Netherlands. Regional Environmental Change, 15(8): 1717-1729.
[18] Reyes, C. M, Agbon, A.D, Mina, C.D and Gloria, R.A.B. (2017).Agricultural insurance program: Lessons from different country experiences, PIDS Discussion Paper Series, No. 2017-02, Philippine Institute for Development Studies (PIDS), Quezon City.
[19] Soye, Y.A and Adeyemo D. L (2017).Evaluation of impact of reinsurance mechanism on insurance companies sustainability in Nigeria. International Journal of Research, Innovations and Sustainable Development, 7(1):177-190.