FACTORS INFLUENCING CROP INSURANCE PARTICIPATION IN MAIZE FARMING

Crop insurance has been divided into comprehensive (all-risk) and hail insurance and these have been analysed separately. A discriminant analysis of 82 farmers surveyed in the Highveld Region during July and August 1987 indicates that it is the farmer more exposed to risk, with lower liquidity, greater experience and more debt, who insures comprehensively. The latter producer also tends to have an unfavourable return on assets with a small or non-existent livestock enterprise. With respect to hail insurance, results indicate that it is the older farmer with low gross farm and off-farm income that tends to insure. Further insight into economic forces influencing farmer participation is important as it may aid policy-makers in the adjustment of present and the formation of future policies regarding such risk management strategies as crop insurance.


Issue Date:
1989-06
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/267241
ISSN:
0303-1853
Language:
English
Published in:
Agrekon, Volume 28, Issue 2
Page range:
11-16




 Record created 2018-01-26, last modified 2018-04-02

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