Preferences for crop insurance attributes among cocoa farmers in Ghana

Abstract

PurposeThis article analyzes farmers' preferences for different nonindexed crop insurance alternatives, using discrete choice experiment data on cocoa farmers from southern Ghana. We examine farmers' attendance to attributes by comparing self-reported attribute nonattendance (ANA) to the behavior inferred from the choices.Design/methodology/approachWe utilize the latent class endogenous attribute attendance (EAA) model to address potential endogeneity by jointly modelling farmers' attribute processing strategies with their choice of attributes of the insurance products.FindingsThe results show that premium levels, mode and length of indemnity payouts tend to influence farmers' preferences for crop insurance products. The findings also reveal that credit-constrained farmers attend more to premium and payment mode attributes of the crop insurance products and that credit-constrained farmers tend to exhibit lower willingness-to-pay estimates for the crop insurance attributes.Research limitations/implicationsThe findings from the study suggest that credit constraints do not only limit input use, but also tend to have statistically significant impact on farmers' cocoa insurance participation decisions.Originality/valueThe study examines the impact of credit constraints on farmers' crop insurance preferences while accounting for ANA.

Innovations in smallholder agricultural financing and economic efficiency of maize production in Ghana’s northern region

“…The mean differences in covariates and the levels of bias for users and nonusers were significantly reduced or eliminated after matching ( Table 5 ). According to Owusu et al. (2021) ; Anang et al.…”

“…The literature on crop insurance in Ghana is quite nascent with studies such as Okoffo et al. (2016) , Owusu et al. (2021) , and Agbenyo et al.…”

Agricultural insurance and rural revitalization—an empirical analysis based on China’s provincial panel data

“…China, a developing country with thousands of years of farming history, has long maintained a traditional agricultural development model in many rural areas. Most of China’s agricultural producers still maintain traditional planting habits, and always attribute natural and man-made disasters encountered in agricultural production to bad luck, and rarely think of avoiding risks through agricultural insurance ( 1 ). However, this situation is quietly changing with the vigorous development of China’s rural revitalization (agricultural and rural modernization).…”

“…Based on the theoretical analysis of the mechanism of agricultural insurance on rural revitalization, this paper empirically studies the effect of agricultural insurance on rural revitalization by using panel data from various provinces in China from 2011 to 2020. 1 In this paper, the TOPSIS entropy weight method, the system generalized method of moments (GMM) and the threshold model are used to calculate the actual development level of rural revitalization in each province of China, the promotion effect of agricultural insurance on the development level of rural revitalization and the promotion of rural revitalization in five dimensions, and whether there is a threshold effect of agricultural insurance on rural revitalization. The empirical results show that: (1) The level of rural revitalization in various provinces in China shows a dynamic trend of "overall slow rise, with obvious differences between provinces."…”

“…1 In this paper, the TOPSIS entropy weight method, the system generalized method of moments (GMM) and the threshold model are used to calculate the actual development level of rural revitalization in each province of China, the promotion effect of agricultural insurance on the development level of rural revitalization and the promotion of rural revitalization in five dimensions, and whether there is a threshold effect of agricultural insurance on rural revitalization. The empirical results show that: (1) The level of rural revitalization in various provinces in China shows a dynamic trend of "overall slow rise, with obvious differences between provinces." (2) Improving the development level of agricultural insurance can drive the improvement of China's rural revitalization level, and every 1 unit increase in the development level of agricultural insurance will drive the level of China's rural revitalization to increase by 0.1633 units.…”