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Abstract

Faced with the risk of climatic variability, crop and rainfall insurance becomes a necessary tool for farmers in Benin. The insurance has been recently introduced to help farmers mitigate climate risk. However, farmers are reluctant to its participation and adoption. With 155 randomly selected farmers in the district of Ouesse, this study investigates on determinants of participation in the crop and rainfall insurance program. The results of Poisson model and the hurdle model show that gender, the age combined with experience, the acreage of maize, the understanding of agricultural insurance, the education, the perception on agricultural insurance and the household income are the main drivers of the number of time farmers subscribed to the insurance. Producers should be made aware of the purpose of agricultural index-based insurance. In addition, financial support in form of discount should be provided to farmers with low income to get access to the agricultural insurance.

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