Agricultural Insurance and Sustainable Food Supply Systems: An Assessment for Nigerian Farmers

اقتصاد و توسعه کشاورزی

Article 1, Volume 37, Issue 2 - Serial Number 59, June 2023, Pages 119-130   

Document Type: Research Article-en

DOI: 10.22067/jead.2023.78280.1159

Authors

Sunday Ajemunigbohun^{* 1}; Ibraheem Abdul-Azeez²

¹Department of Insurance, Faculty of Management Sciences, Lagos State University, Lagos, Nigeria

²Department of Transport Operation and Management, School of Transport and Logistics, Lagos State University, Ojo, Lagos, Nigeria

Abstract

Agriculture plays a pivotal role in Africa's development and is essential for achieving the Sustainable Development Goals (SDGs). However, the agricultural sector is inherently exposed to production risks, and many farmers in the developing world lack access to reliable agricultural insurance coverage. This situation arises due to limited data and knowledge about farmers' insurance needs and the high costs associated with insuring against severe agricultural risks. Promoting agricultural insurance as an instrument can have several significant impacts, aligning with multiple SDGs. It can help stabilize farmers' income, thereby contributing to the goal of reducing poverty (SDG 1). Moreover, agricultural insurance can provide a safety net for food producers, helping them manage the impacts of climate-related risks and aligning with SDG 13, which addresses climate action. Additionally, by enhancing the resilience of farmers and ensuring more predictable income, agricultural insurance can contribute to addressing hunger (SDG 2) and ultimately create a more sustainable and prosperous agricultural sector in Africa. Therefore, this study evaluated agricultural insurance as an instrument for sustainable food supply systems in Nigeria. This study adopted a survey design. This study captured thoughts, experiences, and observations of selected agricultural underwriters in the Nigerian insurance industry through structured questionnaire. A descriptive statistic was employed in the data analysis. This study results indicated that aside from farmers’ awareness which showed some level of yardstick with respect to farmers behavioural metrics, all other metrics played no significant roles. It was also recorded that why farmers’ age, gender, family size and farming experience have no significant roles in the uptake of agricultural insurance, all other participatory factors have major effects. The study contributed significantly to knowledge with the graphical representations of the challenges confronting the agricultural insurers in Nigeria. The study provided suitable recommendations that endear achievable SDGs in Nigeria.

Keywords

Agricultural insurance; Agricultural risk; Nigeria; Sustainable food systems

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