The aim of this study was to examine various factors that determine small-holder farmers’ decisions towards adopting crop insurance schemes in their agricultural production activities.
Based on the study’s results, there was a strong correlation between independent variables such as land ownership, size, on-farm revenue, farmer organisations or groups, marital status (single) and years of experience with production risks.
Nevertheless, the overall findings indicate that a significant number of farmers do not fully comprehend the insurance concept. Furthermore, the study recommends providing targeted awareness and sensitization on the risks associated with crop farming and the tools available for hedging production risks. The provision of crop insurance should look into several factors that may affect farmers’ decisions to the uptake of crop insurance, whilst the Government should encourage more formal agricultural lending by participating financial institutions. READ ON…
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