Determinants of Access and Extent of Use of Agricultural Insurance Schemes by Small-Scale Farmers in Kogi State Nigeria

Abstract

Research Background: Although, insurance services are offered by the Nigerian Agricultural Insurance Corporation and other private companies in Nigeria; however, there has been a low level of involvement of farmers in the purchasing of insurance premiums in Kogi state. The empirical evidence on the factors accountable for the low patronage of the Nigeria Agricultural Insurance Schemes (AIS) in Kogi State are not known. The identification of these factors inhibiting the access and use of AIS by farmers and the provision of appropriate and efficient solutions by the relevant stakeholders can mitigate the catastrophic effects of risks and uncertainties on the farmers. Purpose of the article: The research was carried out in order to ascertain the determinants of access and extent of use of AIS by farmers in the study area so as to of provide appropriate and efficient solutions capable of mitigating the catastrophic effects of risks and uncertainties inherent in agriculture on the farmers means of livelihood. This makes the analysis of the level of access and extent of use of and the factors influencing farmers' willingness to participate in the agricultural insurance scheme a compelling necessity. Methods: Data for the study was collected through the help of a well-structured questionnaire administered to 150 farmers whom were selected through a multi-stage random sampling technique. Data collected were analysed using descriptive statistics and Heckman's two-stage model. Findings and value added: Farmers in the study area were males, literate, and experienced farmers. The determinants of access to AIS were awareness of AIS, age, income, and marital status, while age, awareness of AIS, and income significantly influenced the extent of use of AIS by the farmers in the study area. Farmers in the study area can access and use more of AIS through increased awareness of the insurance scheme as well as increasing farmers' income level through affordable loan scheme or outright government grants.

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