Assessment of Agricultural Insurance Uptake Among Crop Farmers in Nasarawa State

This study assesses agricultural insurance awareness, uptake, and willingness to pay among crop farmers in Nasarawa State, North Central Nigeria. Agricultural insurance is a critical risk management tool that can protect farm investments from weather, pest, and price shocks, yet uptake among Nigerian smallholder farmers remains extremely low despite the existence of the Nigerian Agricultural Insurance Corporation. Nasarawa State's diverse farming communities provide a useful context for examining insurance market development challenges. This study uses a survey design, collecting data from 200 crop farmers in Lafia, Akwanga, and Keffi local government areas. Insurance awareness, current uptake, risk perception, and contingent valuation of willingness to pay for crop insurance are assessed. Descriptive statistics and logistic regression are applied. Findings reveal that insurance awareness among sampled farmers is low, at 34 percent, and actual uptake is negligible at only 4 percent of the sample. Willingness to pay for crop insurance averages 3,800 naira per hectare per season, which falls short of actuarially fair premium estimates for the region. Prior experience of crop loss, education level, and extension contact are significant positive predictors of willingness to pay. The study concludes that agricultural insurance market development in Nasarawa State is constrained by awareness gaps, affordability concerns, and trust deficits. It recommends awareness campaigns through extension networks and a subsidised premium model for smallholder insurance introduction.

Keywords: agricultural insurance, uptake, crop farmers, Nasarawa State, risk management.