What Do Farmers Want from Crop Insurance Schemes: A Stated Preference Approach

Dennis Olila (), Rose Nyikal and David Otieno

No 212596, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: Climate change and weather variability are perhaps some of the major challenges facing the world today. In the phase of these challenges, various climate mitigation strategies including financial, production, as well as marketing aspects have played a significant role in cushioning farmers against adverse effects. In Kenya, agricultural insurance is still at a pilot stage after the unsustainable effort in the 1970’s. Despite the noble intention to revive the crop insurance industry, limited empirical information exists on farmers’ preferences for crop insurance. The study employed Choice Experiment (CE) to elicit farmers’ preferences for crop insurance design features among 300 farmers. The analysis employed a random parameter logit (RPL) model. The results show that farmers are willing to pay for various features of crop insurance. These findings are important in informing ex-ante design and improvement of crop insurance programmes in Kenya and the rest of the world.

Keywords: Crop Production/Industries; Farm Management (search for similar items in EconPapers)
Pages: 30
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-env and nep-ias
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212596

DOI: 10.22004/ag.econ.212596

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