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SO Ogunmefun
AI Achike

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SO Ogunmefun
AI Achike

International Journal of Agricultural Policy and Research
ISSN 2350-1561
Vol.3 (12), pp. 412-418, December 2015
Available online at
Article 15/ID/JPR198/07/ pages
Author(s) agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License.

Original Research Article

Informal insurance practices in low income farmer communities: Odogbolu case study (Ogun State, Nigeria)

*Ogunmefun S. O. and Achike, A. I

Department of  Agricultural Economics, University of Nigeria, Nsukka, Enugu State, Nigeria.

*Corresponding Author Email:donoluwilliams(at)
Tel.: +2348039113710

date Received: November 3, 2015     date Accepted: December 5, 2015     date Published: December 28, 2015


This study analyzed informal insurance practices in low income farmer communities, a case study of Odogbolu Local Government Area of Ogun state, Nigeria. To give effect to the study, eighty farmers were randomly sampled from the study area. Data collected through structured questionnaires and interview schedules were analyzed using frequency distribution and Pearson correlation techniques. Results showed a positive correlation between number of sources of risks and uncertainties perceived by farmers and strategies employed to prevent their effects. The gross margin of the respondents showed that farmers who cultivated more than one crop, and reared one poultry or small ruminant animal have more income than those who do not. This research work also showed that rural farmers used different informal insurance measures like diversification of crop and livestock enterprises, contract farming, keeping buffer stock, savings, land fragmentation and others to manage various risks that they routinely face. Out of the ten (10) informal insurance measures studied, diversification identified by the respondents to be the most practiced among the farmers while contract farming is the least used by the respondents. Recommendations derived from the study include encouraging farmers to adopt the most profitable farming systems and informal insurance measures to help them have a stable income.

Key words: diversification, management, practiced, systems

Ogunmefun and Achike