Assessment of the Levels of Awareness and Use of Agricultural Insurance Scheme among the Rural Farmers in Kogi State, Nigeria

Author

Department of Agricultural Economics and Extension, Kogi State University, Anyigba, Nigeria

Abstract

The study investigated the levels of awareness and use of agricultural insurance scheme in Kogi State of Nigeria. A total of 240 respondents from eight communities were selected through a multistage random sampling technique. Data collected through structured questionnaire were analyzed using descriptive statistic, percentages and sigma scoring model. The results revealed that farmers in the State are mostly males (95%) with low levels of education and an average farm size of 3.2 hectares. The study further revealed that majority of the farmers belong to low income group with about 55 percent earning less than N100,000.00 per annum. The sigma score of 5.04 for the level of awareness showed a high level of awareness of agricultural insurance scheme among the rural farmers in the state. However, the sigma score of 3.26 reported for the level of use revealed a low level of agricultural insurance usage in the area. The major sources of information of agricultural insurance scheme to the farmers were cooperative societies (66%) and extension agents (65%). The major problems preventing the usage of agricultural insurance by the farmers in the State were fear of failure to honour agreement (75%), high insurance premium (66%), inadequate financial resources (65%) and non-coverage of many crops (61%). The study then recommended among others, the prompt payment of benefits to farmers and expansion of the scope of the scheme to cover other major crops. [Stephen Jimoh Ibitoye. Assessment of the Levels of Awareness and Use of Agricultural Insurance Scheme among the Rural Farmers in Kogi State, Nigeria. International Journal of Agricultural Science, Research and Technology, 2012; 2(3):143-148].

Keywords


1. Agbamu, J. U. (2006). Essentials of Agricultural Communication in Nigeria. Lagos. Malthouse Press Limited.
2. Agwu, A. E. and Anyawu, A. C. (1996). Socio-cultural and environmental constraints in implementing the NALDA programme in south-eastern Nigeria: A case study of Abia and Enugu States. Journal of Agriculture, Technology and Education. 1 (2): 68 – 72.
3. Aina, O. S. and Omonona, B. T. (2012). Nigeria Agricultural Insurance Scheme (NAIS): Prospect, Achievement and Problems. Global Advanced Research Journal of Agricultural Science. 1 (5): 097 – 103.
4. Audu, S. I., Ibitoye, S. J. and Umar, H. Y. (2010). Comparative Economic Analysis of Cooperative and Non-Comperative Farmers in the adoption of Improved Technologies in Dekina LGA of Kogi State, Nigeria. International Journal of Agricultural Economics, Management and Development. 1(!): 49 – 57.
5. Central Bank of Nigeria (CBN). (2006). Annual Report and Statement of Account. Abuja, Nigeria.
6. Epetimehin, F. M. (2012). Agricultural Insurance in Nigeria and Economic Impact. International Journal of Agricultural Economics, Management and Development. 1(1): 56 – 71.
7. Gupta, P. K. (2008). Fundamentals of Insurance. India, Himalaya Publishing House.
8. Ibitoye, S. J. (2010). Influence of Farm size, Educational status and Farm income on the Adoption of Maize Varieties in Kogi State, Nigeria. American-Eurasian Journal of Sustainable Agriculture.4(1); 20 – 25.
9. Ibitoye, S. J. (2011). The Influence of Socio-Economic Variables on the Choice of Cassava Variaties in Kogi State, Nigeria. International Journal of Agriculture, Science, Research and Technology. 1(4); 185 – 193.
10. Kogi State Economic Empowerment and Development Strategy (KOSEEDS). (2004). Towards Poverty Alleviation Wealth Creation. Lokoja, Kogi State Ministry of Budget and Planning. Pp 17.
11. Kurimoto, A. (2002): Evaluating Performance by Cooperative Value and Efficiency. Nigeria Journal of Cooperative Studies. 2 (1), 39-54.
12. National Population Commission (NPC). (2007). The 2006 Population Census. Official Gazette. Abuja, Vol. 94 No. 24. May 15.
13. Ogundele, O. O. and Okoruwa, V. O. (2006). Technical Efficiency Differentials in Rice Production Technologies in Nigeria. Research Paper No.154. African Economic Consortium, Nairobi, Kenya.
14. Okwoche, V. A. , Asogwa, B. C. and Obinne, P. C. (2012). Evaluation of the Impact of Agricultural Insurance on the Performance of Peasant Farmers in Benue State of Nigeria. American Journal of Scientific Research. 60; 94 – 103.
15. Olubiyo, S. o. Hill, G. P. and Webster, J. P. (2009). Econometric Analysis of the impact of Agricultural Insurance on Farming Systems in the Middle Belt, Nigeria. African Journal of Food , Agriculture, Nutrition and Development. 9(6); 7 – 9.
16. Salisu, S. A. (2001). Individual Pump Ownership and Associated Service Providers in Fadama Irrigation in Northern Nigeria. Proceedings of the Regional Seminar on Private Sector Participation and Irrigation in Sub-Saharan Africa. 22 – 26 October, Accra, Ghana. Pp 211 – 220.
17. Ugwu, D. S. and Kanu, I. O. (2012). Effects of Agricultural Reforms on the Agricultural Sector in Nigeria. Journal of African Studies and Development. 4(2); 51 – 59.