Article Number: DRJAFS18445237
DOI: https://doi.org/10.26765/DRJAFS18445237
ISSN: 2354-4147

Vol. 10(4), Pp. 114-118, April 2022

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Original Research Article

Assessment of Rice Farmers’ Participation in the Nigerian Agricultural Insurance Corporation (NAIC) Scheme in Bende Local Government Area of Abia State, Nigeria

Zelda A. Elum*

Tamuno-Ina C. Ibraye


Abstract

Farmers participate in insurance schemes as a result of high risks associated with agriculture and the occurrence of natural disasters like fire, pest and diseases, drought and floods that can lead to low farm yields and consequently lower incomes. The major objective of the study was to assess rice farmers’ participation in the Nigerian agricultural insurance scheme in Bende Local Government Area of Abia State. Specifically, the study investigated the farmers’ socio-economic characteristics and their awareness of the Nigerian agricultural insurance scheme. A multistage sampling procedure was used to survey a total of one hundred rice farmers. Descriptive statistics and logistic regression model were employed in data analysis. Results showed the mean age of the farmers was 41 years. About 75% of them were males and 25% females while 54% of the farmers had tertiary education. The logit regression showed that having access to loans significantly increased the likelihood of rice farmers’ participation in the insurance scheme. It was also learnt that the major challenges encountered by the rice farmers were lack of finance and inability to understand the working technicalities of insurance policy scheme, as well as limited information about the NAIC scheme. It is recommended that government should enhance farmers’ access to loans through policies that encourage the financial institutions to readily lend to smallholder farmers and to encourage their participation in the agricultural insurance scheme through public awareness campaign as it would help in the sustenance of farmers’ production.


Keywords: Agriculture, challenges, farmers, insurance, rice


 Received: March 11, 2022  Accepted: March 25, 2022  Published: April 28, 2022


Copyright © 2022 Direct Research Journal of Agriculture and Food Science