Effect of agricutural insurance on agriculture sector in Nigeria

Abstract

This study examines effect of agricultural insurance on the agriculture sector in Nigeria. Ex-post facto research design was used in the study. Analysis technique applied was Ordinary least square. It was found that agriculture insurance claims-paid have no significantly effect on the volume of credit to food stock sector; agriculture insurance reserves have no significantly effect on the volume of credit to food stock sector; agriculture insurance claims-paid have no significantly effect on the volume of credit to livestock sector; and agriculture insurance general reserves have no significantly influence on the volume of credit to livestock sector. Based on the findings of the study it was concluded that agriculture insurance has minimal influence on credit given to farmers. As such, agriculture insurance still has a long way to go to become relevant in the economy. It was recommended that pilot processes should be used to gradually grow farmers into participation in agricultural insurance. This will scale up farmers understanding of and trust in agricultural insurance.

Keywords: Agriculture, Farmers, Risk, Insurance