Profitability analysis of selecting informal insurance measures for selected enterprises by rural farmers in Odogbolu Local Government area

Ogunmefun S.O. and Achike A.I.
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Ogunmefun S.O.: University of Nigeria
Achike A.I.: University of Nigeria

Russian Journal of Agricultural and Socio-Economic Sciences, 2015, vol. 39, issue 3, 25-36

Abstract: This study analyzed the farming systems and other informal insurance measures used by farmers for optimum farm income in Odogbolu Local Government Area of Ogun state, Nigeria. To give effect to the study, eighty farmers were randomly selected from the study area. Data collected through structured questionnaires and interview schedules was analyzed using net farm income analysis. Results showed the gross margin of the farmers who cultivated more than one crop, and reared one poultry or small ruminant animal have more income than those who do not. This research work also showed that rural farmers use different informal insurance measures like diversification of crop and livestock enterprises, contract farming, keeping buffer stock, savings, land fragmentation and others to manage risks that they routinely face. Out of the ten (10) informal insurance measures studied, diversification was the most practiced among the respondents while contract farming is the least used by the respondents. Recommendations include encouraging farmers to adopt the most profitable farming systems and informal insurance measures to help rural people have a stable income.

Keywords: DIVERSIFICATION; CONTRACT FARMING; BUFFER STOCK; FRAGMENTATION; RISKS (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:scn:031261:16082022

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