Poultry Farms Risk Management by Insurance: Evidence from Ghana

Adjei, Cosmos; Amagashie, D; Anim-Somuah, Henry; Oppong, Boahen Atta

doi:10.9734/bjemt/2016/26636

Cited by 4 publications

(2 citation statements)

References 6 publications

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“…Knowledge about the WII scheme was found to have a negative significant relationship with the respondent's WTP at p o0.01. This is inconsistent with previous research which showed that farmers with more knowledge, and that understand the insurance product, are more likely to purchase it (Abebe and Bogale, 2014;Adjei et al, 2016;Boyd et al, 2011;Danso-Abbeam et al, 2014;Ellis, 2016;Giné et al, 2008;Kakumanu et al, 2012). The result from the current research implies that respondents with knowledge about, and understanding of the WII scheme is less likely to pay for it.…”

contrasting

confidence: 66%

Willingness to participate and pay for index-based crop insurance in Ghana

Adjabui¹,

Tozer

Gray

2019

AFR

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Purpose The purpose of this paper is to assess farmers’ willingness to participate and pay for weather-based index insurance in the Upper East Region of Ghana, and what factors influence the participation and purchase of crop insurance schemes. Design/methodology/approach A survey of 200 farmers in the region was carried out in 2018 to measure demographic information, farm characteristics, risks and risk-management practices and attitudes to crop insurance programs. The survey also captured maximum willingness to pay (WTP) for crop insurance. The double-bounded contingent valuation technique was used to estimate the WTP for crop insurance and the variables that affected WTP. Findings Farmers, in general, had an indifferent attitude to crop insurance in the region, but were willing to participate in the crop insurance programme, and were willing to pay between 7.5 and 12.5 per cent of the cost of growing maize as a premium for crop insurance. Demographic and economic variables did not impact WTP, but attitude towards crop insurance, farm diversification and frequency of drought negatively impacted on the WTP for crop insurance. Practical implications Education programs could be undertaken to improve the attitude and understanding towards crop insurance, as some farmers perceived the programme as not trustworthy, and others did not truly understand the operation of the programme. Social implications Drought can have a significant impact on household welfare, particularly in food insecure countries or regions. Crop insurance can provide a method of securing income for farmers allowing them to purchase food rather than other choices, such as removing children from education to reduce household expenses, improving the long-term welfare of the farm household. Originality/value This paper considers willingness to participate and WTP for a crop insurance programme in Ghana, it is one of a small number of papers that consider attitude to, and willingness to participate and WTP for crop insurance in developing countries. The value of the research is the expanded understanding of farmer attitude to crop insurance and their lack of knowledge of crop insurance operations.

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contrasting

confidence: 66%

Willingness to participate and pay for index-based crop insurance in Ghana

Adjabui¹,

Tozer

Gray

2019

AFR

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“…They are therefore more likely to insure their farms against outbreaks of diseases and other eventualities. This result is consistent with Adjei, Amegashie, Anim‐Somuah, and Opong () and Mohammed and Ortmann () who found that farmers without multiple sources of income are more likely to participate in poultry insurance scheme than those who have multiple sources of income. The study also found a positive and significant effect of access to credit ( ACREDT ) variable on willingness to insure farms at 1% level.…”

Section: Resultssupporting

confidence: 90%

Are poultry farmers willing to insure their farms? Empirical evidence from Ghana

Dziwornu

Assefuah

2019

Manage Decis Econ

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The inherent risks in poultry business require that farmers insure their farms to relief them when they occur. This paper investigated the willingness of poultry farmers to insure their farms, using probit model. Primary data were collected from 180 farmers in two regions of Ghana. The factors that are more likely to influence poultry farmers' decision to insure their farms are credit access, diversification of income, tying insurance to technology, subsidizing insurance premium, and designing insurance to suit risk. Poultry insurance should be designed to suit risk faced by farmers, subsidized by government, and bundled with credit for uptake.

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