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Hilton Atlanta, 401
Agricultural and Applied Economics Association
Agricultural Insurance in Developing and Emerging Economics: Demand, Impacts, and Future Prospects
Saturday, Jan. 5, 2019 2:30 PM - 4:30 PM
- Chair: Awudu Abdulai, University of Kiel
Production Risks, Liquidity Constraints and Participation in Crop Insurance Programs in Ghana
AbstractThis paper analyzes smallholder farmers’ decisions to participate in crop insurance programs, using cross-sectional data from cocoa farmers in the Ashanti, Brong-Ahafo and Western Regions of Ghana. Given the significance of output uncertainty and imperfect capital and insurance markets, we develop a theoretical framework to show how risk preferences and liquidity constraints influence farmers’ crop insurance participation decisions. We use a stated preference approach to obtain information on farmers’ willingness to participate in crop insurance programs, and a discrete choice model to examine the factors that influence their participation decisions. We find that risk preferences and liquidity constraints influence farmers’ willingness to participate in crop insurance programs. The results also show that the probability of participating in crop insurance programs is higher for males, the more educated, and those who trust others. The levels of fertilizer and pesticide expenditure and access to credit are also found to significantly influence the decision to adopt the programs.
Micro-Analysis on the Evaluation of the Impacts of Natural Disasters on Agriculture: Implications for Crop Insurance Programs in Taiwan
AbstractAgriculture in Taiwan is vulnerable to natural disaster shocks due to its geographical location in a semi-tropical zone. The Agricultural Disaster Relief Program (ADRP) is the government-sponsored program and it is the only program in Taiwan to provide cash compensation to farmers for their crop and cultivated facility loss as a result of natural disasters. Taiwanese government is now trying to implement market-based crop insurance program to replace the ADRP. The objective of this paper is to evaluate the impacts of agricultural disasters on crop production in Taiwan. We use a repeated large-scaled population-based farm household dataset in empirical analysis. The estimates on hand can then be used as the basis to calculate the optimal premium for the incoming crop insurance program.
Diego Arias Carballo,
- F0 - General