Willingness to Pay for Crop Insurance Premium-A Study on Maize Farmers in India

Shashi Kiran and K.B. Umesh

No 210867, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: Agricultural activity is subject to a wide range of risks due to the variable economic and biophysical environment in which farming operates. Agriculture risks arise due to uncertainty over factors determining returns to agricultural production. Crop insurance is one of the risk mitigating strategies for farmers. The objective of the study was to estimate WTP by the rainfed maize farmres to crop insurance premium and also factors influencing their WTP. The study revealed that farmers were willing to pay 0.34 percent more premium than the prevailing rate to insure their crop. The average probability of WTP of farmers for crop insurance premium was 0.53. Age was the important factor influencing their WTP. It was observed that farmers' awareness about the products and procedures of crop insurance was poor. Hence, efforts should be made to increase the awareness and help farmers to take advantage of crop insurance.

Keywords: Agricultural Finance; Crop Production/Industries (search for similar items in EconPapers)
Pages: 13
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-ias and nep-mfd
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:210867

DOI: 10.22004/ag.econ.210867

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