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EFFECTS OF WEATHER-INDEX INSURANCE: THE CASE OF SMALLHOLDER MAIZE FARMERS IN NORTHERN GHANA

Bashiru Haruna, Brent Sohngen, Iddrisu Yahaya and Alexander Wiredu ()

International Journal of Food and Agricultural Economics (IJFAEC), 2017, vol. 05, issue 3

Abstract: The study investigates the effect of weather-index insurance on intensity of fertilizer use and yields among 230 smallholder maize farmers in Northern Region of Ghana. Out of the total sample of selected farmers, about 35% purchased the insurance. Using an endogenous treatment regression model, the study showed that weather-index insurance purchase increased the intensity of fertilizer use but did not have a significant effect on maize yield. Past experience of crop failure due to drought, livestock ownership as well as the total area of land owned explained weather-index insurance purchase in the study area. Based on the results of this study, the Government of Ghana can use weather-index insurance as a policy tool to increase the use of fertilizer by smallholder maize farmers.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; Crop Production/Industries; Environmental Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijfaec:266437

DOI: 10.22004/ag.econ.266437

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