Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka
Drought is an almost annual phenomenon affecting many parts of Sri Lanka, causing huge damage to agriculture and losses to the broader economy in general and farmers in particular. Climate change threatens to exacerbate these risks. Risk transfer mechanisms, such as crop insurance schemes, may help...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Elsevier
2023
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| Acceso en línea: | https://hdl.handle.net/10568/134902 |
| _version_ | 1855525783231004672 |
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| author | Aheeyar, Mohamed M. M. Amarasinghe, Upali Amarnath, Giriraj Alahacoon, Niranga |
| author_browse | Aheeyar, Mohamed M. M. Alahacoon, Niranga Amarasinghe, Upali Amarnath, Giriraj |
| author_facet | Aheeyar, Mohamed M. M. Amarasinghe, Upali Amarnath, Giriraj Alahacoon, Niranga |
| author_sort | Aheeyar, Mohamed M. M. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Drought is an almost annual phenomenon affecting many parts of Sri Lanka, causing huge damage to agriculture and losses to the broader economy in general and farmers in particular. Climate change threatens to exacerbate these risks. Risk transfer mechanisms, such as crop insurance schemes, may help buffer farmers against these hazards and has gained attention as an adaptation response to become an important element in agricultural risk management. Despite the numerous efforts over several decades to popularize crop insurance as a risk transfer tool in the country under heavy subsidies, farmers' voluntary enrollment in crop insurance has been very low. Therefore, understanding the farmers' behaviors and attitudes towards crop insurance and the potential of such programs in emerging climate-induced vulnerabilities is critical to enhancing the welfare of the farming community. This paper assesses the factors that influence willingness to enroll for crop insurance among farmers in irrigated and rainfed farming system in the drought-prone North Central Province of Sri Lanka using a logistic regression model. The study sample consisted of 149 irrigated farmers and 51 rainfed farmers selected randomly. Regression results show that farmer’s age, agriculture as the primary source of income, irrigation as the source of water, and availability of supplementary water source are significantly related to willingness to pay (WTP) for insurance. The overall results indicate the role of household socioeconomic factors and their contextualized risk perceptions shape the adoption decision of crop insurance. The findings of the paper contribute to that end through primary data from a rainfed and irrigated areas in the province. Although the present research was carried out in a limited area, the study area is dominated by the traditional nature of agricultural practices by smallholder farmers in a drought exposed environment, the findings of the study should apply to the rest of the dry zone areas in the country. The results on factors affecting farmers' willingness to purchase crop insurance assist the practitioners and policymakers to draft the guidelines and strategies for more inclusive interventions for agriculture risk management and building farmer resilience. |
| format | Journal Article |
| id | CGSpace134902 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Elsevier |
| publisherStr | Elsevier |
| record_format | dspace |
| spelling | CGSpace1349022025-10-26T12:57:04Z Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka Aheeyar, Mohamed M. M. Amarasinghe, Upali Amarnath, Giriraj Alahacoon, Niranga weather index insurance willingness to pay smallholders farmers crop insurance agricultural insurance climate change drought natural disasters vulnerability resilience risk transfer risk management irrigated farming rainfed farming households socioeconomic aspects Drought is an almost annual phenomenon affecting many parts of Sri Lanka, causing huge damage to agriculture and losses to the broader economy in general and farmers in particular. Climate change threatens to exacerbate these risks. Risk transfer mechanisms, such as crop insurance schemes, may help buffer farmers against these hazards and has gained attention as an adaptation response to become an important element in agricultural risk management. Despite the numerous efforts over several decades to popularize crop insurance as a risk transfer tool in the country under heavy subsidies, farmers' voluntary enrollment in crop insurance has been very low. Therefore, understanding the farmers' behaviors and attitudes towards crop insurance and the potential of such programs in emerging climate-induced vulnerabilities is critical to enhancing the welfare of the farming community. This paper assesses the factors that influence willingness to enroll for crop insurance among farmers in irrigated and rainfed farming system in the drought-prone North Central Province of Sri Lanka using a logistic regression model. The study sample consisted of 149 irrigated farmers and 51 rainfed farmers selected randomly. Regression results show that farmer’s age, agriculture as the primary source of income, irrigation as the source of water, and availability of supplementary water source are significantly related to willingness to pay (WTP) for insurance. The overall results indicate the role of household socioeconomic factors and their contextualized risk perceptions shape the adoption decision of crop insurance. The findings of the paper contribute to that end through primary data from a rainfed and irrigated areas in the province. Although the present research was carried out in a limited area, the study area is dominated by the traditional nature of agricultural practices by smallholder farmers in a drought exposed environment, the findings of the study should apply to the rest of the dry zone areas in the country. The results on factors affecting farmers' willingness to purchase crop insurance assist the practitioners and policymakers to draft the guidelines and strategies for more inclusive interventions for agriculture risk management and building farmer resilience. 2023 2023-11-30T23:40:22Z 2023-11-30T23:40:22Z Journal Article https://hdl.handle.net/10568/134902 en Open Access Elsevier Aheeyar, Mohamed; Amarasinghe, Upali; Amarnath, Giriraj; Alahacoon, Niranga. 2023. Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka. Climate Risk Management, 42:100575. [doi: https://doi.org/10.1016/j.crm.2023.100575] |
| spellingShingle | weather index insurance willingness to pay smallholders farmers crop insurance agricultural insurance climate change drought natural disasters vulnerability resilience risk transfer risk management irrigated farming rainfed farming households socioeconomic aspects Aheeyar, Mohamed M. M. Amarasinghe, Upali Amarnath, Giriraj Alahacoon, Niranga Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka |
| title | Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka |
| title_full | Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka |
| title_fullStr | Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka |
| title_full_unstemmed | Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka |
| title_short | Factors affecting willingness to adopt climate insurance among smallholder farmers in Sri Lanka |
| title_sort | factors affecting willingness to adopt climate insurance among smallholder farmers in sri lanka |
| topic | weather index insurance willingness to pay smallholders farmers crop insurance agricultural insurance climate change drought natural disasters vulnerability resilience risk transfer risk management irrigated farming rainfed farming households socioeconomic aspects |
| url | https://hdl.handle.net/10568/134902 |
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