Evaluation of the relationship between participation in agricultural insurance scheme and income of poultry farmers in Osogbo ADP zone, Osun State

Abstract

Poultry production is affected by disease outbreak, weather-related perils, market risk, financial risk, and technological failure of the production.This study examined relationship between the farm income and participation in agricultural insurance on poultry layers farmers in Osogbo Agricultural Development Projects (ADP) of Osun State, Nigeria. Primary data were collected from 120 poultry layers farmers with the aid of structured questionnaire using multi-stage sampling procedures. Descriptive statistics and inferential statistics were used to analyze the data. Majority (80.0%) of the poultry farmers were below the age of 50 years and more than half (64.2%) of them were male. Majority (83.3%) of the poultry farmers had poultry farming experience of more than five years with mean years of farming experience of 12 years. The crucial constraint that limits the poultry farmers in participating in agricultural insurance scheme in the study area is lack of adequate information on the benefits of agricultural insurance scheme. Mean farm income of those poultry farmers that insured their farm was higher than those that did not participate which imply that agricultural insurance scheme has a positive relationship on the farm income on farmers who participated in the insurance scheme. Adequate dissemination of knowledge on the benefits of agricultural insurance by extension agents is crucial to increase the level of participation of poultry farmers.