Willingness of cocoa farmers to participate in crop insurance in the Dormaa Municipality of the Bono region, Ghana

Abstract

The investigation considered farmers’ readiness to take part in crop insurance in the Dormaa municipality of the Bono Region, Ghana. Essential information from 167 respondents who were chosen through a multi-stage sampling method for the study was collected through a structured questionnaire. Elements influencing readiness to participate in crop protection by cocoa farmers was evaluated using probit regression model and lastly constraints of cocoa farmers were assessed utilizing Kendall’s coefficient of concordance. The study found that the average amount farmers were eager to pay was GH₵215.59 per year for crop insurance. Majority 96.7% of the respondents were eager to participate in crop insurance but 3.3% of the respondents were not willing to take part. The important factors influencing readiness to join crop insurance by the farmers were age, marital status, access to extension service and experience in cocoa farming. Again, the foremost constraint affecting the farmers was pests and diseases. The study therefore recommends that agricultural extension agents and other agricultural insurance stakeholders should sensitize crop farmers on the significance of crop insurance policy. Insurance companies ought to give crop insurance to farmers at moderate rates of GH¢ 215.59 per year to encourage their participation. Key words: Crop insurance, cocoa, probit regression, Dormaa Municipal assembly, Ghana.