Role of socio-economic variables in adoption of crop insurance: A Discriminant Function Approach

Mrinali Kumari, Krishna Singh, D.K. Sinha, Nasim Ahmad and R.R. Mishra

MPRA Paper from University Library of Munich, Germany

Abstract: This study examined the influence of the respondents’ socio-economic characteristics on their adoption of crop insurance schemes. Discriminant analysis based on the criteria values of standardized canonical coefficient and correlation matrix identified that educational level, farm size, satisfaction level, awareness and access to source of credit were positive discriminators while negative coefficients were obtained for age, income level and number of earning members. Awareness about crop insurance scheme, satisfaction level of farmer respondent with respect to the insurance scheme and access to source of credit were the highest discriminant variables. The study made it amply clear that socio-economic characteristics of farmers exert a significant influence on their adoption of crop insurance schemes. Taking into cognizance the findings of the discriminant analysis it can be inferred that awareness about the schemes and their benefits have to be created among the farmers in order to motivate them to go for insurance of their crops.

Keywords: Socio-economic; crop insurance; discriminant analysis; adoption (search for similar items in EconPapers)
JEL-codes: O33 Q00 Q1 Q12 Q14 Q38 (search for similar items in EconPapers)
Date: 2017-06-14, Revised 2017-07-14
New Economics Papers: this item is included in nep-agr and nep-ias
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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