Utilisation of agricultural insurance among rice farmers in Ogun State

Rice farming like many other farm enterprise is risk prone. However, agricultural insurance has proven to be a veritable tool for reducing this risk. There is therefore the need to have information about the utilization of agricultural insurance among rice farmers to aid planning. This study therefore investigated the utilisation of agricultural insurance among rice farmers in Ogun state. Using multi stage sampling procedure, 113 respondents were selected for the study. Data collected were analysed using Chi-square, PPMC and T-test results reveal that mean age of the respondents was 48 years. Majority (58.4%) were married with a mean household size of 6 persons and 38.9% of the respondents had access to primary education. While majority (58.4%) cultivated on not more than 2 hectares of land, 75.0% of the respondents were not aware of agricultural insurance, therefore, majority (87.0%) didn’t utilise it. Whereas 85.8% belonged to an association 42.0%indicated lack of proper understanding of insurance operations as the major constraint militating against the use of agricultural insurance. Respondents’ sex, P>0.067 marital status, P>0.093 and membership of association, P>0.070 were significant variables influencing the use of agricultural insurance. However, level of awareness (r=0.680, constraints (r=0.230) and source of information about agricultural insurance (r= 0.451) were all significant to the use of agricultural insurance services. There is a significant difference in the use of agricultural insurance when farmers had access to loan and when they did not. t= 6.110, p=0.000). The study concluded that utilisation of agricultural insurance by rice farmers was low; therefore increased sensitization for awareness creation is recommended.