Agricultural insurance and risk management among poultry farmers in Ghana: An application of discrete choice experiment

Abstract

Risks, risk management techniques and the willingness to insure poultry farms by poultry farmers in Ghana were explored. Random Parameter Logit (RPL) and Conditional Logit (CL) models were used for the analysis. Key risks identified were disease, marketing and financial risks. Primary insurance attributes of the premium period, risk covered, participation type, price (amount paid per annum) and the amount covered were considered in the analysis. US$5.96 per month was the mean premium farmers were willing to pay to insure farms. The results further revealed that family size, price and participation type negatively influenced participation in agricultural insurance, whereas education, farming experience, premium period and risk covered positively influenced participation.

Keywords

• Agricultural insurance
• Risk
• Poultry
• Lancaster theory and discrete choice experiment