AN ANALYSIS OF THE SOCIO-ECONOMIC FACTORS AFFECTING FARMERS' PARTICIPATION IN THE NIGERIAN AGRICULTURAL INSURANCE SCHEME IN KADUNA STATE
AN ANALYSIS OF THE SOCIO-ECONOMIC FACTORS AFFECTING FARMERS' PARTICIPATION IN THE NIGERIAN AGRICULTURAL INSURANCE SCHEME IN KADUNA STATE
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Date
1998-04
Authors
AGADA, JOY EJURA
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Abstract
This study was designed to analyse the socio-economic
factors affecting farmers' participation in the Nigerian
Agricultural Insurance Company in Kaduna state. The objectives
of the study included: to summarize the socio-economic
characteristics of farmers in the study area; to determine the
factors that affect a farmers' participation in the Nigerian
agricultural insurance scheme (NAIs); to critically assess the
loss assessment procedures adopted by tne scheme; and to assess
the adequacy of indemnity paid. Data were collected from 150
maize and or poultry farmers in the study area during the 1995/96
cropping season. Descriptive statistics and logit regression
analysis were used to analyse the data obtained.
The study identified loan as the singular most important
factor that affect a farmers' participation in the NAIS because
it is mandatory that all those who acquire any form of
institutional loan for use in agricultural production, to
participate in the insurance scheme. The logit regression
analysis also revealed that in addition to Amount of loan, years
of education, membership of farmers association contact with
extension agents, size of loss suffered and years of experience
in farming were other factors affecting farmers participation in
the scheme. Loss assessment as undertaken by the scheme is not
very satisfactory in ensuring that the scheme fulfills its main
role of keeping farmers in production even after suffering a
loss. This is because it is based on cost of production as
opposed to the cost of replacement. It therefore, does not take
into account the effect of inflation. This it was discovered
also discourages farmers from participating in the scheme.
Indemnity computation and payment were also found to be
plagued with a number of problems which include; NAIC keeps a
back-log of unsettled claims which may take an average of 3-6
months to be settled; Under insurance by some farmers who insure
only the volume of loan obtained from the bank and not the total
sum invested on the farm led to material misdescription and
misrepresentation. Indemnity paid in the event of a loss in this
case, covers only the proportion of the farm insured. Others
include the problem arising from the excess clause and minimum
loss clause attached to the policy.
Description
A Thesis submitted to the Postgraduate school, Ahmadu
Bello University, Zaria, in partial fulfillment of
requirements for the Degree of Master of Science (M.Sc), in
Agricultural Economics.
Department of Agric. Economics &. Rural Sociology,
Ahmadu Bello University
Zaria, Nigeria.
APRIL,1998
Keywords
ANALYSIS,, SOCIO-ECONOMIC,, FACTORS,, FACTORS,, FARMERS, PARTICIPATION,, NIGERIAN,, AGRICULTURAL,, INSURANCE SCHEME,, KADUNA STATE