ISSN 2167-0447
International Journal of Agricultural Sciences ISSN 2167-0447 Vol. 10 (2), pp. 001-005, February, 2020. © International Scholars Journals
Full Length Research Paper
Effective factors on the demand of insurance of agricultural crops in Sistan area, Iran
Kamran B. Khomeini1*, Parviz H. Omidyar2 and Hossein Daneshjoo3
1Department of Agricultural Economics, Zabol University, Zabol, Iran.
2Department of Agricultural Economics, Zabol University, Zabol, Iran.
3Department of Scienc e of Extension and Agriculture, Zabol University, Zabol, Iran.
Accepted 28 October, 2019
Abstract
As farming is faced with uncertain conditions such as climate (rain reduction and drought), pests, diseases, production, price and market fluctuations, it is an economic activity under risk. In order to reduce risk and stimulate investment, agricultural insurance has been planned in agriculture. This study attempts to investigate the performance insurance of agricultural crops by collecting sectional information in the region of Sistan. A Tobit model was used to analyze effective factors on the demand of agricultural insurance. The results indicate that agricultural services insurance of crops has fluctuated because of several socio-economic effects on farmers’ acceptance and demand of insurance in recent years. Annual return and experience are two main effective factors which affect farmers’ demands of insurance. The structural improvement and appropriate government policies can potentially increase the insurance of agricultural crops.
Key words: Insurance of agricultural crops, censored regression model, demand, Iran.