Farmers' Response to Agricultural Insurance Scheme in Ikwuano L.G.A., Abia State

ABSTRACT

The principal objective of this study is to assess farmers' response to the Agricultural Insurance Scheme in Ikwuano LGA with a view of identif'ing major constraints to the successful implementation of the insurance programme. Data used for this analysis were collected from a random sample of 120 farmers. Analysis showed that 50 of the respondents participated in the programme based on the list of insured farmers collected from NAIC, Umuahia while 70 were non-participant. Structured questionnaires were administered to participant and non-participant farmers but only 115 questionnaires were found usable for analysis. Data analysis was done using means, frequency distributions, tests of significance and regression analysis. Of the four functional forms used, semi-log functional form provided for the best fit and was therefore adopted/further analysis. The result of the analysis showed that only 28.70 percent of the rural farmers were aware of the agricultural insurance scheme. The fact was ttiat mc st of the farmers took the policy unknowingly in connection with the loin they collected from the Guaranteed Agricultural Credit Scheme. Value of premium paid and the age of the farmer were significant and positive determinants of farmers' participation in the scheme. Constraints to the level of participation in the scheme include farmers' lack of awareness of the scheme, high premium rate,. general aparthy towards insurance and failure of past agricultural program aes which breeds lack of confidence in the government programmes. On the part of the Nigerian Agricultural Insurance Company, the major constraints are; lack of trained personnel, and shortage of funds. The Nigerian Agricultural Insurance Company shonid employ more qualified staff, establish rural branches, publicize the scheme, charge low & premium and have adequate funds to carry out its programmes in order to increase the level of farmers' participation in the scheme.

 TABLE OF CONTENTS

PAGE TITTLE

TABLE OF CONTENTS vii

LIST OF TABLES ix

LIST OF FIGURES x

CFIAPTER ONE

1.0 INTRODUCTION 1

1.1 Background of the Study 1

1.2 Staernent of the Problem 2

1.3 Objectives of the Study 3

1.4 Hypotheses of the Study 3

1.5 Justification of the Study 3

CHAPTER TWO

Title

TITLE PAGE

ABSTRACT

DEDICATION

ACKNOWLEDGEMENT

CERTIFICATION

2.0, LITERATURE REVIEW 4

2.1 Risk and Uncertainties in AgricuitLire 4

2.2 Strategies for Reducing Risks and Uncertainties 5

2.3 Insurance and Agriculture 7

2.4 Farmers' Participation in Agricultural Insurance Scheme 13

CHAPTER THREE

3.0 METHODOLOGY 15

3.1 Study Area 15

3.2 Sampling Procedure 15

3.21 Sampling Location 15

3.22 Sampling for Respondents 16

3.31 Data Collection 16

332 Sources of Data 16

3.4 Analytical Techniques 17

3.5 Limitation of the Study 18

CHAPTER FOUR

4.0 RESULTS AND DISCUSSION 21

4.1 Socio-economic Background or Characteristics of Farmers 21

4.2 Testing of 1-lypotheses 25

4.3 Determinants of Farmers' Participation in the Nigerian

Agricultural Insurance Scheme 26

REFERENCES

APPENDIX A:

APPENDIX B

APPENDIX C

APPENDIX J)

Hypothesis 1

Hypothesis 2'

Hypothesis 3

Research Questionnaire

Page

CHAPTER FIVE

5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS