International Journal of Agricultural Policy and Research
Vol.3 (12), pp. 412-418, December 2015
Available online at https://www.journalissues.org/IJAPR/
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)gmail.com
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