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Factors influencing adoption of livestock insurance by commercial dairy farmers in three Zobatat of Eritrea

  • Mohammed, M.A.
  • Ortmann, Gerald F.
Registered author(s):

    A sample survey of 74 commercial dairy farmers was conducted between November 2002 and February 2003 in three Zobatat (zones) of Eritrea to identify factors that affect the adoption of livestock insurance. The results of a logit model indicate that formal education of the farmer and the farmer's awareness of livestock insurance increase the probability of insurance adoption, whereas farming experience, poor location and use of alternative risk management strategies, such as off-farm investments and farm enterprise diversification, reduce the probability of livestock insurance adoption. Further insight into the factors influencing farmers' adoption of livestock insurance may assist policy makers and the National Insurance Corporation of Eritrea in their future plans. Results of this study have some policy implications, such as the need for a variable rather than fixed insurance premium, improving the know-how of farmers concerning risk assessment, improving Zobatat' infrastructure and a need of a thorough study to be conducted on the demand for agricultural insurance in Eritrea.

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    File URL: http://purl.umn.edu/31693
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    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 44 (2005)
    Issue (Month): 2 (June)
    Pages:

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    Handle: RePEc:ags:agreko:31693
    Contact details of provider: Web page: http://www.aeasa.org.za/
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    1. Nieuwoudt, W. Lieb, 2000. "An economic evaluation of a crop insurance programme for small-scale commercial farmers in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 39(3), September.
    2. Neil Esho & Anatoly Kirievsky & Damian Ward & Ralf Zurbruegg, 2003. "Law and the Demand for Property-Casualty Insurance Consumption," Centre for International Economic Studies Working Papers 2003-14, University of Adelaide, Centre for International Economic Studies.
    3. Steven C. Blank & Jeffrey McDonald, 1996. "Preferences for crop insurance when farmers are diversified," Agribusiness, John Wiley & Sons, Ltd., vol. 12(6), pages 583-592.
    4. Mario J. Miranda & Joseph W. Glauber, 1997. "Systemic Risk, Reinsurance, and the Failure of Crop Insurance Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 206-215.
    5. Vandeveer, Monte L., 2001. "Demand for area crop insurance among litchi producers in northern Vietnam," Agricultural Economics, Blackwell, vol. 26(2), pages 173-184, November.
    6. Ashok K. Mishra & Barry K. Goodwin, 1997. "Farm Income Variability and the Supply of Off-Farm Labor," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 880-887.
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