Research Studies Associate Smallholders With Negative Attitudes Towards Index

1804 WordsJun 21, 20168 Pages
Studies associate smallholders with negative attitudes towards index-based insurance within prisms of limited prodding the existing manifold risks. This article analyses perception of smallholders towards weather index insurance amid common risks and coping strategies. The study was carried out in Embu County, Eastern Kenya using a sample of 401 smallholders obtained following a multistage sampling technique. The study established that the most important risks to the smallholder farmers were drought, input costs and crop pests and diseases respectively while the least ranked risks in the same order of importance were excess rains, floods and frost. Similarly, the results reveal that the smallholder farmers ranked engagement in off-farm work, use of household savings and crop diversification as the most important strategies of coping with drought. Borrowing from banks, food aid and stopping children from attending school were also ranked as the least important strategies. In addition, the findings do not strongly suggest a negative attitude towards weather index insurance among smallholders thus controverting hitherto studies that do not overly explain why? Furthermore the study rather postulates that other risks facing smallholders and their risk responses disposition may distort and override farmers’ attitude towards weather index insurance. The Ordered probit model output reveals that sex of the house hold head, size of the household, if a farmer experienced crop loss in

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