Articles
MEASURING WILLINGNESS TO PAY FOR AGRICULTURAL INSURANCE: A CASE STUDY OF PISTACHIO PRODUCERS IN IRAN
Article number
726_116
Pages
675 – 678
Language
English
Abstract
In this study, primary data was collected by interviewing 300 sample farmers using a two stage cluster sampling method in Iran.
Willingness to pay for pistachio insurance was measured directly and indirectly.
The results indicated that if farmers risk convictions and preferences were the only two factors affecting decision making, the willingness to pay for insurance would be very high.
In this respect, pistachio producers would pay not only a fair premium, but also loading costs.
More investigations showed that, in addition to risk convictions and preferences, factors such as government policies, off-farm work, financial restrictions, moral hazard and adverse selection were considered in decision making toward insurance.
These factors reduced the average willingness to pay to 73.27% of the fair premium.
Willingness to pay for pistachio insurance was measured directly and indirectly.
The results indicated that if farmers risk convictions and preferences were the only two factors affecting decision making, the willingness to pay for insurance would be very high.
In this respect, pistachio producers would pay not only a fair premium, but also loading costs.
More investigations showed that, in addition to risk convictions and preferences, factors such as government policies, off-farm work, financial restrictions, moral hazard and adverse selection were considered in decision making toward insurance.
These factors reduced the average willingness to pay to 73.27% of the fair premium.
Authors
M.A. Ezzatabadi
Keywords
farmer, premium, willingness to pay, pistachio, cluster sampling.
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