Factors Hindering Pakistani Farmers' Choices Towards Adoption of Crop Insurance

Abstract

This study was conducted to analyze the factors that negatively influence Pakistani farmers' willingness to participate in crop insurance. Probit model was applied to identify the significant factors which influenced our dependent variable “not willing to participate”. The results of the analyses showed that crop insurance premium was the most influencing factor which had positive and significant impact on dependent variable. Similarly dissatisfaction with crop loan insurance scheme, lacking of knowledge about crop insurance, believing of being against Islamic rules and time taking process was also found to be positive and significantly influenced the dependent variable. While limited decision power and limited perils were not found to be significant in the results.