EMPIRICAL ANALYSIS OF CEREALS FARMERS’ WILLINGNESS TO CONTINUE THE USE OF AGRICULTURAL INSURANCE SCHEME IN NIGER STATE, NIGERIA

Abstract

Risks and uncertainties associated with farming enterprises are to an extent undermining the productivity and sustainability of agricultural sector in Nigeria. This study was carried out to determine the factors influencing small scale cereal farmers’ willingness to continue use of agricultural insurance scheme in Niger State, Nigeria. A multistage sampling procedure was employed to select a sample size of 80 and structured questionnaires were used to obtained data from the farmers. The data collected from the farmers were analyzed using descriptive statistics and probit regression model. The findings revealed that cereal farmers were in their productive years with a mean age of 37 years. They are experienced farmers with an average farm size of 2 hectares. The major risks encountered by cereal farmers were fire outbreak and insects/diseases infestations. The probit regression showed that age, farm size and output were significant variables that influenced the willingness of cereal farmers to continue using agricultural insurance scheme. The major constraint limiting cereal farmers’ participation in agricultural insurance schemes was delay in indemnity payment. It is recommended that farmers should be indemnified appropriately by insurance service providers this will ensure continuity of farmers’ participation in agricultural insurance