Assessing rural farmers’ willingness to pay for crop insurance scheme: Evidence from Rwanda

Ngango, Jules; Nkurunziza, Fabrice; Ndagijimana, Joseph

doi:10.1080/23322039.2022.2104780

Cited by 7 publications

(13 citation statements)

References 41 publications

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“…These results are consistent with the findings of [28], which revealed that household size positively influences farmers' WTP for crop insurance. However, the study results contradict [26], who found a negative and significant effect on the insurance premium farmers were willing to pay.…”

Section: Variables Probit Modelcontrasting

confidence: 97%

“…This study's results are consistent with the findings of [9,15] who reported that most farmers were unwilling to join Weather Index Insurance (WII) programs. The study finding contradicts [1,4,3,7,26] who reported that most farmers were willing to pay for agricultural insurance. Khat farmers willing to pay for agricultural insurance were younger, highly educated individuals with large families, residing near khat markets, owned extensive khat bushes, depended on agriculture as their primary source of income, had access to credit, were active members of agricultural groups, and possessed awareness about agricultural insurance, as shown in Table 1 below.…”

Section: Resultscontrasting

confidence: 76%

“…An increase in land ownership by one acre increases willingness to pay by Ksh 1,858. The results are consistent with [2,16,26] found farm size had a positive and significant influence on willingness to pay for crop insurance. However, the results contradict [29], who revealed that farm size negatively influences WTI and WTP amounts for rainfall insurance products in rural India.…”

Section: Variables Probit Modelsupporting

confidence: 88%

“…[10]. Studies have revealed that, with a few exceptions, a significant number of farmers in Africa are willing to pay for agricultural insurance schemes [9,15,26].…”

Section: Introductionmentioning

confidence: 99%

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Determinants of Khat Farmers' Willingness to Pay for Agricultural Insurance

Muraya,

Chege,

Munyiri

2024

IJAE

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Khat farming is an important source of revenue and a possible source of potential investment in Kenya. Despite the benefits, various production and marketing risks, which negatively influence productivity, profitability, economic growth and farmers' livelihood, remains a challenge. Insurance for agricultural enterprises has the ability to open up access to essential services that boost productivity and marketing. This study aimed at determining the effect of socio-economic and institutional factors on khat farmers' willingness to pay for agricultural insurance. The data used in this study was obtained from khat farmers in Meru County, Kenya, from a sample of 323 farmers. The study employed the utility maximization theory and the double-bounded dichotomous choice model. Empirical results propose that the household size, size of land owned, awareness of agricultural insurance, credit access and the amount of khat bushes possessed by the family positively and significantly affected willingness to pay. The farmer's age and income earned from khat production negatively and significantly influenced willingness to pay. This study concluded that awareness of agricultural insurance and credit access greatly influence khat farmers' willingness to pay. The study recommends improving farmers' credit facilities to allow them access more financial capability since the study showed that the willingness to pay for insurance was proportional to credit access. The study further recommends strengthening on awareness on the importance of agricultural insurance to enhance khat farmers' involvement in agricultural insurance scheme. The results of this study will equip decision-makers with evidence-based tools to excellently market and establish demand-driven insurance products to meet the demands of khat farmers.

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Section: Variables Probit Modelcontrasting

confidence: 97%

Section: Resultscontrasting

confidence: 76%

Section: Variables Probit Modelsupporting

confidence: 88%

“…[10]. Studies have revealed that, with a few exceptions, a significant number of farmers in Africa are willing to pay for agricultural insurance schemes [9,15,26].…”

Section: Introductionmentioning

confidence: 99%

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Determinants of Khat Farmers' Willingness to Pay for Agricultural Insurance

Muraya,

Chege,

Munyiri

2024

IJAE

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“…In this article, we present the findings of two studies that show that participating in a microfinance project increases tuition and other related costs. Microfinance did not improve children's schooling as expected (Hassan et al, 2020;Ngango et al, 2022).…”

Section: H1: Mfis Have a Positive Association With The Level Of Child...mentioning

confidence: 60%

Microfinance's Crucial Role in Helping Victims of a Natural Calamity

Tehreem

Munawar

Ali

et al. 2022

Pak. J. Humanit. Soc. Sci

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This study aimed to examine microfinance's role in providing essential services to economically disadvantaged people in the aftermath of natural disasters. A study of 300 people who use microfinance was carried out in the tehsil of Taunsa, located in the district of Dera Ghazi Khan. In 2022, information was gathered from microfinance institution customers impacted by flooding. The purpose of this study was to determine whether or not microfinance helped them meet their basic needs during the natural disaster. The data was analyzed using the 21st edition of the Statistical Package for the Social Sciences (SPSS). The most important findings from this study were that most microfinance users were men; however, slightly more than one-third of microfinance users were females. This is an important finding because, in a natural disaster, financial assistance is provided to female-headed families so their basic needs can be met. The vast majority of those polled owned their homes, most of which were flooded. The findings of this study suggested that neither the government nor microfinance institutions provide significant assistance to disaster victims in their efforts to recover. According to preliminary findings from this study, low-income families facing difficult circumstances during or after a disaster are more likely to rely on themselves and the coping mechanisms provided by their communities than on any public or private assistance. According to the findings, policy interventions aimed at reducing flood losses and assisting improvement should consider the shifting risk profile that impoverished people face when it comes to natural disasters.

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Weather index-based agricultural insurance for flower farmers: Willingness to pay, sales, and profitability perspectives

Mitra,

Datta,

Dipto

et al. 2024

Open Agriculture

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This study investigated the nexus among the profitability, sales, and willingness to pay (WTP) more for weather index-based agricultural insurance premiums of flower farmers. In addition, the effect of sociodemographic and farm characteristics of flower farmers on their WTP more for insurance premiums was also estimated. A total of 160 flower farmers were selected from Bangladesh using the purposive random sampling technique. Propensity score matching technique was employed to identify the sales difference depending on WTP for insurance premiums while the profitability differences of flower farmers were assessed from different points of view. A binary logistic regression model was used to estimate the effect of sociodemographic and farm characteristics of flower farmers on their WTP more for insurance premiums, while a Likert scale was used to identify the major problems faced by flower farmers. Flower growers are willing to pay a higher premium for insurance when their sales decline. Farmers with lower profitability show a greater WTP higher insurance premiums, whereas those with relatively higher profitability are less inclined to do so. Farmers’ WTP more for insurance premiums decreases with age, education, and farm area, while farmers’ WTP more for insurance premiums increases with experience, training, earning members, marigold farming, and consciousness about natural calamities, pests, and diseases. The most significant problems faced in flower production are high input costs, demand fluctuation, pest and disease attacks, price fluctuation, and loss of production. Thus, the introduction of crop insurance in flower farming may increase profitability and reduce the exposure to risks involved in flower farming. The involvement of younger and more trained farmers in flower farming will increase their WTP more for insurance premiums.

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Assessing rural farmers’ willingness to pay for crop insurance scheme: Evidence from Rwanda

Cited by 7 publications

References 41 publications

Determinants of Khat Farmers' Willingness to Pay for Agricultural Insurance

Determinants of Khat Farmers' Willingness to Pay for Agricultural Insurance

Microfinance's Crucial Role in Helping Victims of a Natural Calamity

Weather index-based agricultural insurance for flower farmers: Willingness to pay, sales, and profitability perspectives

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Assessing rural farmers’ willingness to pay for crop insurance scheme: Evidence from Rwanda

Cited by 7 publications

References 41 publications

Determinants of Khat Farmers&apos; Willingness to Pay for Agricultural Insurance

Determinants of Khat Farmers&apos; Willingness to Pay for Agricultural Insurance

Microfinance's Crucial Role in Helping Victims of a Natural Calamity

Weather index-based agricultural insurance for flower farmers: Willingness to pay, sales, and profitability perspectives

Contact Info

Product

Resources

About

Determinants of Khat Farmers' Willingness to Pay for Agricultural Insurance

Determinants of Khat Farmers' Willingness to Pay for Agricultural Insurance