Determinants of poultry farmers' participation in livestock insurance in southwest Nigeria

Abstract

Poultry birds are primarily exposed to the risk of death caused by various types of diseases. In many cases, epidemic diseases can cause catastrophic losses from deaths of an entire stock of livestock. In the light of this, this study was designed to examine the determinants of poultry farmers' participation in livestock insurance in southwest Nigeria. Primary data were obtained with the aid of structured questionnaire from a cross section survey of 403 poultry farmers drawn through multi-stage sampling procedure. Descriptive statistics and logit model was used to analyze data obtained. Majority (81.4%) of the poultry egg farmers were males. Majority (85.6%) were married with an average household size of 5.4±1.7 members. The average age and mean years of experience were 45.5±9.1 and 10.0±5.05 years, respectively. More than half (59.6%) of the poultry farmers were aware of livestock insurance policy while only 11.9% of the poultry farmers insured their poultry farms. Stock size, rearing system, access to extension services and poultry rearing experience were significant variables that influenced the participation of the poultry farmers in livestock insurance policy. It is recommended that effective service delivery by insurance service providers will ensure continuity of farmers' participation in agricultural insurance. Also, the government should formulate a policy that will make livestock insurance more affordable to poultry farmers and adequate dissemination of knowledge on the benefits of livestock insurance by extension agents is crucial to increase the level of participation of poultry farmers in the use of livestock insurance policy.