scholarly journals Looking out for a better mitigation strategy: smallholder farmers’ willingness to pay for drought-index crop insurance premium in the Northern Region of Ghana

2017 ◽  
Vol 6 (1) ◽  
Author(s):  
Stephen A. Abugri ◽  
Joseph Amikuzuno ◽  
Edward B. Daadi
Keyword(s):  
Willingness To Pay ◽  
Drought Index ◽  
Smallholder Farmers ◽  
Crop Insurance ◽  
Northern Region ◽  
Insurance Premium ◽  
Mitigation Strategy

scholarly journals A Study on Farmers' Perception and Preference in Subscribing to Drought-Index Crop Insurance in the Northern Region of Ghana

2020 ◽  
pp. 63-76
Author(s):  
Stephen A. Abugri
Keyword(s):  
Climate Change ◽  
Drought Index ◽  
Smallholder Farmers ◽  
Multinomial Logistic Regression ◽  
Crop Insurance ◽  
Sampling Procedure ◽  
Northern Region ◽  
Management Tool ◽  
Northern Ghana ◽  
Index Insurance

Climate variability has become a challenge on the livelihoods of smallholder farmers in Northern Ghana and its impacts becoming severer and as a result, crop insurance has since been seen as the best remedy. Data was obtained from 315 farmers in 15 communities of Tolon and Kumbungu districts and Savelugu-Nanton municipality using multistage sampling procedure. The data collected was used in analyzing maize farmers’ perceptions as well as preferences in subscribing to crop drought-index insurance. A Likert Scale was used to analyze farmers’ perception about crop index insurance whiles the Multinomial Logistic Regression model analyzed farmers’ preference. Most of the respondents declared that crop index insurance is a production risk management tool that can be used to combat the negative effects of climate change on their farms and livelihood as a whole. However, it was concluded that, the most preferred crop insurance package is the public crop insurance package and government subsidy was the highest rank coping strategy. It is therefore imperative that Government role out crop insurance packages and subsidizes the initial stages of crop insurance programs to encourage participation by farmers to effectively mitigate against climate change.

scholarly journals Willingness to pay for Rainfall based Insurance by Smallholder Farmers in Central Rift Valley of Ethiopia: The Case of Dugda and Mieso Woredas

2014 ◽  
Vol 1 (2) ◽  
pp. 117-152
Author(s):  
Hiwot Teshome Abebe ◽  
Ayalneh Bogale
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Household Head ◽  
Insurance Premium ◽  
Tobit Model ◽  
Farm Income ◽  
The Mean ◽  
Income Variability ◽  
Risk Insurance ◽  
Small Holder

Current climate variability is already imposing significant challenge to Ethiopia. Therefore,  farmers  have  faced  income  variability  in  almost  every  production  season. Problems associated with dependence on rain fed agriculture are common in Ethiopia. Smallholder farmers’ vulnerability from such income variability is also common. Over the years, a range of risk management strategies have been used to reduce, or to assist farmers to absorb, some of these risks. Since insurance is potentially an important instrument to transfer part of the risk, this study try to describe the nature of weather related risks faced by smallholder farmers, assess small holder farmers willingness to pay for the rainfall risk insurance and examine factors that affect the maximum farmers are willing to pay for the rainfall risk insurance. The data was collected from 161 sample households from the two woredas of the study area using closed ended value elicitation format followed by open ended follow up questions. The study uses Logit model to estimate the mean willingness to pay in the close ended format in addition with Tobit model to examine factors that affecting small holder farmer willingness to pay as well as intensity of payment. The mean willingness to pay values are found to be 129.98 and 183.41 birr per hectare for the open and close ended formats respectively. The total willingness to pay for the study area was found to be birr 5,740,244 per year. The tobit model shows six potential explanatory variables affect the willingness to pay value. Income of household and ownership of radio have positive and significant effect on the value of willingness to pay, whereas off-farm income, age of household head, number of livestock owning and availability of public and private gifts have negative and significant effect on willingness to pay value. If the rainfall risk insurance premium is affordable and households have enough information about the service they are willing to pay for the service. Eventually policy makers need to be aware that socio-economic and institutional characteristics of households influence the willingness to pay for rainfall risk insurance services.

scholarly journals Analysis of Smallholder Farmers’ Perceptions on Climate Change, Preference and Willingness-to-pay for Seasonal Climate Forecasts Information in Savelugu Municipality, Ghana

2019 ◽  
pp. 1-11
Author(s):  
Nasiru Ibrahim ◽  
Kingsley Teye Mensah ◽  
Hamdiyah Alhassan ◽  
William Adzawla ◽  
Christina Adjei-Mensah
Keyword(s):  
Climate Change ◽  
Willingness To Pay ◽  
Information Dissemination ◽  
Smallholder Farmers ◽  
Northern Region ◽  
Climate Information ◽  
Heckman Model ◽  
Seasonal Climate ◽  
Climate Forecasts ◽  
Seasonal Climate Forecasts

Aim: Agricultural production is directly affected by climate change. This means that access to climate information would help the farmers’ preparedness for farming activities and the decision on the types of crops to grow, when to grow them and the types of farm management activities to adopt. As such, this study analysed farmers’ preference for seasonal climate forecasts and their willingness-to-pay for these information. Place and Duration: The study was conducted in the Savelugu Municipality in the Northern region of Ghana. A single period data was collected for analysis. Methodology: A total of 300 farmers were selected through a two stage sampling procedure and used for the study. From the theory of contingent valuation, a descriptive statistic and Heckman model were used in analysing the data. Results: From the results, the majority of farmers were willing-to-pay for seasonal climate information, especially, climate forecasts on rainfall. The farmers preferred that these seasonal climate forecasts should be disseminated to them through the radio. The farmers exhibit positive willingness-to-pay for seasonal climate forecasts to about 20 Ghana cedis. A number of factors influenced the farmers’ decision and amount they were willing-to-pay and these include gender, age, perception of climate change experience, ownership of radio, off-farm activity and participation in planting for food and jobs (PFFJ) program. Conclusions: The findings of this study highlighted the need for climate information by farmers and how this can be effectively disseminated to them. Generally, government institutions and other private agencies should take up the challenge and opportunity to provide climate information, especially seasonal rainfall forecast, to the farmers at a fee.  This fee must be determined at an optimal or at least a breakeven price considering the farmer’s ability to pay. The study also recommended that climate information dissemination should be integrated into government’s PFFJ program.

Impact of community-based exclosure to smallholder farmers’ livelihood and their willingness to pay: empirical evidences from Tigrai, Ethiopia

2021 ◽  
Author(s):  
Gidey Kidu Mezgebo ◽  
Teklay Negash Gebrezgiabher ◽  
Metkel Aregay Gebreyesus ◽  
Kidane Tesfay Gebrezgiabher ◽  
Leake Gebreslassie Weldegiwergis ◽  
...  
Keyword(s):  
Willingness To Pay ◽  
Smallholder Farmers ◽  
Community Based

Building insurance through an NGO

2016 ◽  
Vol 76 (1) ◽  
pp. 119-139 ◽  
Author(s):  
Marie-Christine Bélanger
Keyword(s):  
Design Methodology ◽  
Smallholder Farmers ◽  
Crop Insurance ◽  
Specific Training ◽  
Close Collaboration ◽  
Agricultural Insurance ◽  
Content Type ◽  
Level Of Education ◽  
Challenges And Opportunities

Purpose – This paper is based on a crop insurance implementation currently undergoing in Haiti. The purpose of this paper is to present the development of a program tailored to rice production in the Artibonite Valley, the challenges and opportunities that are arising from the exercise as well as pitfalls and ways to avoid them. Design/methodology/approach – The Système de Financement et d’Assurances Agricoles en Haïti’s approach for the development of crop insurance is in accordance with 13 concepts considered essential in the implementation of agricultural insurance programs. The case study is presented through each of these 13 fundamental concepts. Findings – The paper provides an insight on challenges any organization will face when implementing crop insurance for smallholder farmers. It points out notably that close collaboration of executing agencies with local partners is essential from data collection through insurance development and delivery and that all participants should receive a specific training tailored to their level of education and understanding. Social implications – Haiti is one of the poorest countries on the planet. Smallholder farmers could benefit a lot from crop insurance. It could help them stabilize their income when facing crop losses due to natural hazards or uncontrollable natural events. Originality/value – This paper fulfills an identified need to share real case studies exposing challenges faced when implementing crop insurance for smallholder farmers.

scholarly journals Does smallholder farmers’ awareness of Sustainable Development Goal 2 improve household food security in the Northern Region of Ghana?

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Franklin Nantui Mabe ◽  
Eliasu Mumuni ◽  
Nashiru Sulemana
Keyword(s):  
Sustainable Development ◽  
Food Security ◽  
Smallholder Farmers ◽  
Northern Region ◽  
Household Food Security ◽  
Switching Regression ◽  
Sustainable Development Goal ◽  
Endogenous Switching Regression ◽  
Development Goal ◽  
Household Food

Abstract Background Sustainable Development Goal 2 aims at ending hunger, achieving food security, improving nutrition and promoting sustainable agriculture. Whilst some smallholder farmers are aware of this goal, others are not. The question that arises is whether or not awareness translates into food security. Therefore, this study assessed whether or not smallholder farmers’ awareness of Sustainable Development Goal 2 improves household food security in the Northern Region of Ghana. Methods The study used cross-sectional primary data collected from two districts and two municipalities in the region. An endogenous switching regression treatment effects model with ordered outcome was used to estimate the effects of smallholder farmers’ awareness of Sustainable Development Goal 2 on household food insecurity level. Results The age of household head, distance of households to the regional capital, membership of farmer-based organizations, access to e-extension, education, and ownership of radio are the key drivers of farmers’ awareness of Sustainable Development Goal 2. The results from the endogenous switching regression treatment effects model with ordered outcome showed that households who are aware of the second goal are more food secure than their counterparts. Conclusions It is therefore prudent for stakeholders promoting and championing Sustainable Development Goals to educate farmers on goal 2 as their awareness of the goal is critical to achieving food security.

scholarly journals Estimation of the Amount of Rice Crop Insurance Premium in the Citarum River Basin

2020 ◽  
Vol 1 (1) ◽  
pp. 33-39
Author(s):  
Nurfadhlina Abdul Hali ◽  
Muhammad Faiz Rifqi ◽  
Endang Soeryana
Keyword(s):  
River Basin ◽  
Crop Insurance ◽  
Crop Productivity ◽  
Insurance Premium ◽  
Rice Crop ◽  
Normal Curve ◽  
Mathematical Methods ◽  
Insurance Premiums ◽  
Productivity Data ◽  
Curve Method

Determination of crop insurance premiums in the Citarum River basin can be calculated by mathematical methods. One of the methods of calculation of the premium that is the normal curve methods with data on crop productivity is assumed to be Gaussian. In this thesis are discussed in crop insurance premium calculations Areas Citarum River basin West Bandung Regency with normal curve method with a significant level of coverage. These methods are used because data on crop productivity gained Gaussian. Normal curve method is used without using the assumption of coefficients of variation, and try for some level of coverage. Application materials used are rice crop productivity data in the Citarum River basin of West Bandung Regency in 2008-2014. This research resulted in the value of the rice crop insurance premiums for farmers in the area based on a certain level of coverage.

Smallholder Farmers Access to Climate Information and Climate Smart Adaptation Practices in the Northern Region of Ghana

2021 ◽  
Author(s):  
Abdul-Fatahi Alidu ◽  
Man Norsida ◽  
Nurul Nadia Ramli ◽  
Nur Bahiah Mohd Haris ◽  
Amin Alhassan
Keyword(s):  
Smallholder Farmers ◽  
Northern Region ◽  
Climate Information ◽  
Adaptation Practices

Effects of village savings and loan association on agricultural value productivity in Northern Region of Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Dawuni ◽  
Franklin Nantui Mabe ◽  
Osman Damba Tahidu
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Rural Areas ◽  
Financial Services ◽  
Smallholder Farmers ◽  
Northern Region ◽  
Inclusive Development ◽  
Cross Sectional ◽  
Content Type ◽  
Savings And Loan

PurposeAgriculture in Ghana is dominated by smallholder farmers in rural areas. Majority of these farmers are resource-poor and faced with serious challenges in accessing formal financial services towards farming needs attributed to the stringent requirements. To bridge this gap, village savings and loan associations (VSLA) have been promoted in rural areas as an alternative to meeting the credit needs of smallholder farmers. Credit plays a vital role in input acquisition among farmers for improved agricultural value productivity. This study assesses the contribution of VSLA to agricultural value productivity in the Northern Region of Ghana.Design/methodology/approachThe methodology is a primary cross-sectional data collected with the help of a semi-structured questionnaire. This study, therefore, applied a propensity score matching (PSM) to assess the effects of VSLA on agricultural value productivity.FindingsResults from the PSM revealed that extension contact, contract farming, television set ownership, participating in “Planting for Food and Jobs” and nature of roads, including receiving VSLA information from members' increases participation decision of farmers in VSLA. Conversely, age of a farmer, household size, distance to output market and farmers in the Sagnarigu Municipality have negatively influenced VSLA participation. The propensity score matching estimates showed that members of VSLA obtained 38.2% higher agricultural value productivity than non-members.Originality/valueVillage savings and loans associations can be promoted among smallholder farmers as an effective alternative to formal financial service for inclusive development.

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