| dc.description.abstract | ABSTRACT
In the absence of formal risk management mechanisms, most small scale farmers self insure against crop losses resulting from pest and disease attack or drought by employing informal risk management mechanisms, which diminish expected returns and provide only limited coverage. Recent research shows that maize yields in Africa may reduce by 10% to 20% by 2050 due to increased temperatures and reduced rainfall. Crop insurance is one of the formal risk management mechanisms that can mitigate this risk. Its adoption has however been met with limited success. This study investigated the challenges small scale maize farmers face in accessing and utilizing crop insurance information. The study objectives aimed at; (1) identifying the major sources of crop insurance information, (2) determining the number of farmers using crop insurance and (3) identifying the major crop insurance distribution channels. Using purposive sampling, 3 villages were selected and 100 farmers randomly chosen from the population to respond to questionnaires for data collection. Descriptive analysis was done using SPSS software version 17. The findings indicate radio (96%) and farmer to farmer interaction (89%) and as the main sources of crop insurance information for the small scale maize farmers. 38% of the farmers were found to have adopted crop insurance with 62% of the farmers of the opinion that crop insurance was a product meant for large scale farmers resulting to low adoption. Agro-dealers (74%) were the main crop insurance distribution channel. Since 91% of the farmers had access to, mobile phones with 95% of the farmers having ownership, the study recommended that subsidised mobile based agro-advisory services be adopted in the dissemination of crop insurance information and related agricultural information. Furthermore, the study called for a review in the scope of coverage of current crop insurance products as well as a reduction in insurance premiums coupled with enhanced farmer capacity building to eliminate deterrent farmer perceptions and opinions about crop insurance as an agricultural risk management mechanism. | en_US |
