The effect of Anambra state value chain development programme partnership with Nigerian Agricultural Insurance Corporation (NAIC) on farmer’s production security and risk management

Abstract

The study on the effect of Anambra State Value Chain Development Programme partnership with Nigerian Agricultural Insurance Corporation (NAIC) on farmer’s production security and risk management investigated the index base insurance cover provided to the farmers through the programme partnership, the extent of farmer’s awareness of NAIC requirements for agricultural insurance participation, the benefit of agricultural insurance to food production security and risk management, and the challenges of agricultural insurance in the study area. The study used a well-structured questionnaire and face to face interview schedule to elicit information from a cross-section of randomly selected 200 old and 100 new participants, and 40 NAIC staff. Descriptive statistics, principal factor analysis and Logistic regression model were used to achieve the study objectives. The study revealed the average; age (41.25) and annual income from all sources (876.58 USD) among other variables for the new participants, and an average; age (36.38) and income from all sources (1650.42 USD) among other variables for the old participants. The farmers are insured against flood, surface depending/yield, and fire outbreak among others. The requirements by which the farmers are aware include access to farmland and keeping a good operation record among others, while new participants are only aware of access to farmland, and reporting incidence immediately they occur. The benefits of NAIC acknowledged are that it helps farmers to bounce back, reduce loan default among others. Furthermore, NAIC staff needs to address management issues that are hampering their smooth operations seeing that the three principal factors explained 77.43% of the variance of factors affecting implementation.