PAPER TITLE :AGRICULTURAL INSURANCE PATRONAGE AMONG RURAL FARMERS IN OFU LOCAL GOVERNMENT AREA OF KOGI STATE

JOURNAL Of SUSTAINABLE TECHNOLOGY | VOLUME 1 NUMBER 1 2010

Paper Details

  • Author(s) : SALIU, O.J.; ADEJOH, S.O. and EKELE, F.O.
  • Abstract:

Loss of farm produce to natural hazards such as bush burning, flood and diseases is a regular occurrence in the study area. Agricultural Insurance Services are supposed to provide a cushioning effect for the victims of the aforementioned hazards. This study assesses the level of patronage of agricultural insurance in Ofu Local Government Area of Kogi State. A total of 120 respondents were interviewed using structured questionnaire. Very high and positive correlation existed between agricultural insurance patronage and farm size, education and income (r = 0.92, 0.93 and 0.97) respectively. A mean score of 3.66 represents farmers who took to agricultural insurance because banks made it a requirement, this can initiate a positive influence on agricultural insurance patronage. A mean score of 4.01 also indicates the respondents who averred that poor cash value or claim payment discouraged them from participating in agricultural insurance, which implies a negative influence of agricultural insurance patronage in the study area. A mean score of 3.81 represents farmers who did not patronize the services because of high premium rate. This study therefore recommends that the Federal Government should set aside an amount to reduce premium expenses paid by farmers while Nigerian Agricultural Insurance Corporation (NAIC) should operate performance based discount on premiums. Agricultural extension experts are also recommended to be made part of NAIC management team to improve on the awareness and adoption of Agricultural Insurance in the rural communities.