IIARD International Institute of Academic Research and Development

Journal of Business and African Economy (JBAE )

E-ISSN 2545-5281
P-ISSN 2695-2238
VOL. 10 NO. 3 2024
DOI: 10.56201/jbae.v10.no3.2024.pg27.36

---

Effect of Agricultural Insurance Adoption on the Food Security of Smallholder Rice Farmers in North Central Nigeria: Application of Endogenous Switching Regression

E.I. Bai , A. Ocholi , A.C. Iheanacho , Z.T. Nyiatagher , A. M. Okeke

---

Abstract

The impact of agricultural insurance adoption on the food security of smallholder rice farmers remains inadequately understood. Thus, this study investigated the effect of agricultural insurance adoption on the food security of smallholder rice farmers in North Central Nigeria. The study utilized data from 400 smallholder rice farmers consisting of 200 adopters and 200 non-adopters of agricultural insurance selected from 16 communities of four States in North Central Nigeria using multistage sampling technique. The collected data were analysed using independent sample t-test and endogenous switching regression model (ESRM). The findings showed that the mean food security of adopters of agricultural insurance in the study area was 1.9728 while that of the non-adopters was 1.0272. The t-test result shows that there was significant difference at 1% in the food security of adopters and non-adopters of agricultural insurance (t = 6.963, p < 0.01). The ESRM showed that rice farmers who adopted agricultural insurance were not better than random rice farmers in terms of food security and vice-versa. The ESRM also revealed that agricultural insurance adoption and food security of smallholder rice farmers were significantly influenced by their socio-economic characteristics. The study recommended that campaigns on farmers’ awareness of agricultural insurance should be intensified by stakeholders in the rice industry to encourage patronage; and that policies and programmes targeted at making smallholder farmers subscribe to agricultural insurance as well as to increase their level of food security should take into consideration the socio-economic characteristics of the farmers in their design and implementation.

keywords:

Agricultural Insurance; Adoption; Food Security; Rice Farmers; North-Central Nigeria

---

References:

Abdulmalik, R.O., Oyinbo, O. and Sami, R.A. (2013). Determinants of Crop Farmers’
Participation in Agricultural Insurance in Federal Capital Territory, Abuja, Nigeria.
Greener Journal of Agricultural Sciences, 2(3): 21-26

Adah, O.C., Chia, J.I. and Shaibu, M.U. (2016). Assessment of Rural Farmers’ Attitudes towards
Agricultural Insurance Scheme as a Risk Management Strategy in Kogi State, North
Central Nigeria. Journal of Economics and Sustainable Development, 7(14): 12-19

Adeoti, S.O., Ajayi, A.M. and Agunbiade, M.O. (2020). Uptake of Agricultural Insurance among
Crop Farmers in Nigeria: Reviewing the Factors Influencing their Decisions to Adopt
Agricultural Insurance. Direct Research Journal of Agriculture and Food Science, 8(10):
367-372

Agidew, A.A. and Singh, K.N. (2018). Determinants of Food Insecurity in the Rural Farm
Households in South Wollo Zone of Ethiopia: The Case of the Tekyayeu Sub-Watershed.
Agricultural and Food Economics, 6(10): 1-23
Asamoah, J.O. (2019). Livestock Farmers’ Willingness to Pay for Cattle Insurance in the Northern
Region of Ghana. M.Sc. Thesis Submitted to the Department of Agricultural Economics
and Agribusiness, University of Ghana, Legon.

Assefa, B.A. (2018). Factors Influencing the Food Security of Smallholder Farmers in
Madagascar. M.Sc. Thesis, University of Minnesota. Pp.53
Dhakal, N.H. (2019). Agricultural Credit and Insurance in Nepal: Coverage, Issues and
Opportunities. In: Agricultural Transformation in Nepal (Eds. G. Thapa, A. Kumar, and
P.K. Joshi), Springer, Singapore. 628Pp.

Funmilola, F.A. and Patricia, O.A. (2014). Determinants of Food Security among Low-Income
Households in Maiduguri Metropolis of Borno State, Nigeria. Asian Journal of Social
Sciences and Humanities, 3(1): 74-86
Gbigbi, T.M. and Ndubuokwu, G.O. (2022). Determinants of Agricultural Insurance Patronage
among Crop Farmers in Delta North Agricultural Zone, Delta State, Nigeria. Ege Univ.
Ziraat fak. Derg., 59(2): 235-248
Maddala, G.S. (1986). Disequilibrium, Self-selection, and Switching Models. In Z. Griliches and
M.D. Intriligator (eds), Handbook of Econometrics, Volume 3. Amsterdam: Elsevier
Science.
Njue, E., Kirimi, L. and Mathenge, M. (2018). Uptake of Crop Insurance among Smallholder
Farmers: Insights from Maize Producers in Kenya. Paper presented at the 30th
International Conference of Agricultural Economists, July 28-August 2, 2018,
Vancouver. Pp. 26
Ntukamazina, N., Onwonga, R. N., Sommer, R., Rubyogo, J.C., Mukankusi, C.M., Mburu, J. and
Kariuki, R. (2017). Index-Based Agricultural Insurance Products: Challenges,
Opportunities and Prospects for Uptake in Sub-Sahara Africa. Journal of Agriculture and
Rural Development in the Tropics and Subtropics, 118(2): 141-185
Okpukpare, B.C., Adebayo, O. and Ukwuaba, I.C. (2021). Smallholder Farmers’ Access to
Agricultural Insurance Schemes: An Analysis of the Inhibitors in Kogi State, Nigeria.
Turkish Journal of Agriculture-Food Science and Technology, 9(12): 2159-2165

Olanrewaju, R.M. and Fayemi, O.A. (2015). Assessment of Climate Change Scenarios in North
Central Nigeria Using Rainfall as an Index. Journal of Sustainable Development in Africa,
17(6): 14-30
Otunaiya, A.O. and Ibidunni, O.S. (2014). Determinants of Food Security among Rural Farming
Households. Journal of Sustainable Development in Africa, 16(6): 33-44
Ranganathan, T., Mishra, A.K. and Kumar, A. (2019). Crop Insurance and Food Security:
Evidence from Rice Farmers in Eastern India. Paper Presented at the 2019 Annual
Meeting of the Allied Social Sciences Association, Atlanta, GA, January 4-6, 2019. Pp.
36

DOWNLOAD PDF

---

Back