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

doi:10.56201/jbae.v10.no3.2024.pg27.36

📄 Download Paper

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

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

Abstract

Keywords

References

More Articles from JOURNAL OF BUSINESS AND AFRICAN ECONOMY