August 2016 Vol. 4 No.8

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Onuk EG
Atser MH

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Original Research Article

Determinants of crop farmer’s participation in agricultural insurance scheme in Abuja, FCT, Nigeria

Onuk E. G.¹, ^*Girei A. A.¹ and Atser M. H.²

¹Faculty of Agriculture, Department of Agricultural Economics and Extension, Nasarawa State University, Keffi
²Nobel and Lesley Insurance Brokers Limited, Suite BO 3B, Peace Park Plaza, Utako, Abuja, Nigeria

*Corresponding Author’s E-mail: agirejo@gmail.com

Accepted August 15, 2016

Abstract

This study was carried out to determine the factors influencing participation of Agricultural Insurance Scheme among food crop farmers in Federal Capital Territory Abuja, Nigeria. Sampling procedure was employed to select a sample size of 100 farmers and structured questionnaire was used to elicit data from the farmers. The data collected from the farmers were analyzed using descriptive statistics and logit regression model. The logit regression model was selected as the lead equation or line of best fit. This was based on the co-efficient of multiple determination (R²) = 0.870. This implies that about 87% of the proportion of the variation in dependent variable Y was explained by the independent variables. The logit regression results showed that age, educational level, farm size and accessibility to credit were significant variables that influenced the probability of participation of the farmers in agricultural insurance scheme, while, household size, membership of association and contact with extension agents were found to be insignificant variables. The major challenges faced by farmers in the cause of their participation in agricultural insurance scheme were delayed claim payment. The study recommended that effective service delivery by insurance service providers should ensure continuity of farmers’ participation in agricultural insurance scheme and also participation by farmers who are yet to participate. Continuous sensitization, early assessments of claims and adequate and timely payment should be encouraged so as to attract the confidence of the farmers.

Keywords: Agriculture, Crops, Determinants, Farmers, Insurance, Participation, Scheme