Evaluation of the Impact of Agricultural Insurance on Risk Management Among Smallholder Farmers in Katsina State, North West Nigeria

Agricultural insurance represents a critical risk management tool for smallholder farmers operating in environments characterised by climatic variability and market uncertainty. In Katsina State, government-backed agricultural insurance schemes have been introduced under the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending, yet farmer uptake and impact remain insufficiently studied. This study evaluated the impact of agricultural insurance on risk management among smallholder farmers in Katsina State. A sample of 98 farming households comprising insured and uninsured farmers was selected from three local government areas through stratified random sampling. Data on premium payments, claim experiences, risk perception, and production outcomes were gathered using structured questionnaires. Descriptive statistics and propensity score matching were applied. Results revealed that insured farmers were more likely to invest in improved seed and fertiliser due to reduced production risk perception, resulting in yield improvements averaging 26 percent compared to uninsured counterparts. However, low awareness of insurance products and complex enrolment processes were major barriers. Delayed premium reimbursement eroded farmer confidence in the scheme. The study recommends simplifying insurance product designs, strengthening public awareness campaigns, and leveraging mobile payment platforms to streamline premium collection. Collaboration between insurance providers and agricultural development agencies is essential for scaling uptake. Keywords: agricultural insurance, risk management, smallholder farmers, Katsina State, crop yield.