Fig. 1.
Fig. 2.
Variable description and their a priori expectations
| Variable | Measurement | A priori expectation |
|---|---|---|
| 1 | 2 | 3 |
| AGE | Age of the respondent measured in years | +/− |
| GENDER | Gender of the respondent measured as a dichotomous variable. Male = 1 and female = 0 | +/− |
| MSTAT | Marital status of the respondent. Measured as a dichotomous variable. Married = 1, otherwise = 0 | +/− |
| EDU | Highest level of education of the respondent. Measured as a binary variable. Primary school education and above = 1, otherwise = 0 | +/− |
| HHINCOME | Average monthly income of the household head as a proxy for monthly household income. It was captured as the reported monthly income of the household head from all income sources | + |
| PSCALE | Number of birds owned by the poultry farmer as at the time of the survey. The actual number of birds stocked at the beginning of the production period was used | + |
| HHSIZE | Household size of the respondent. Captured as a count variable representing the number of individuals in the household | _ |
| POCCUP | Primary occupation of the household head. A value of 1 is assigned if the respondent identify poultry farming as his or her primary occupation and zero otherwise | + |
| EXPERIENCE | Signifies experience in poultry farming. Measured by the number of years the respondent has been involved in poultry farming | + |
| EXTENSION | Access to formal extension services. Measured as a dichotomous variable, taking the value of 1 if the respondent had any form of extension contact in the last two production seasons and zero if otherwise | +/− |
| CREDIT | Signifies access to credit. Captured as a binary variable, it assumes the value of 1 if the poultry farmer obtain any formal credit in the last two production season and zero otherwise | +/− |
| KNOW | Indicates respondents’ prior knowledge of agricultural insurance. It takes the value of 1 if the respondent indicate that he/she knew of agricultural insurance prior to the time of this survey and zero otherwise | + |
Determinants of poultry farmers’ willingness to pay for agricultural insurance
| Variable | Coefficient | Std. error | Z value | Marginal effect |
|---|---|---|---|---|
| Sex | −0.2046069 | 0.5145325 | −0.40 | −0.051089 |
| Age | 0.0387333 | 0.031699 | 1.22 | 0.0096715 |
| Education | 0.7918232 | 0.6909468 | 1.15 | 0.1903726 |
| Marital status | −0.0320921 | 0.5949704 | −0.05 | −0.0080141 |
| Household size | 0.1807993 | 0.1356898 | 1.33 | 0.0451444 |
| Experience | −0.119691 | 0.0548845 | −2.18** | −0.0298861 |
| Membership of FBO | −0.0075523 | 0.5680713 | −0.01 | −0.0018858 |
| Primary occupation | 0.8813643 | 0.534797 | 1.65* | 0.2166569 |
| Income | −0.6521644 | 0.5511621 | −1.18 | −0.1614532 |
| Scale | −0.0007741 | 0.0003826 | −2.02** | −0.0001933 |
| Extension contact | 0.0469701 | 0.6786567 | 0.07 | 0.0117281 |
| Credit access | 0.6980887 | 0.8107931 | 0.86 | 0.1713313 |
| Knowledge | 0.8506092 | 0.5409439 | 1.57* | 0.2094264 |
| Constant | −1.631959 | 1.482537 | −1.10 | |
Model fitness
| ||||
Socio-economic characteristics of respondents (n = 113)
| Variables | Frequency | Percentage |
|---|---|---|
| 1 | 2 | 3 |
| Gender (categorical) | ||
| Male | 80 | 70.8 |
| Female | 33 | 29.2 |
| Age (years) | ||
| 18–30 | 29 | 25.7 |
| 31–45 | 45 | 39.8 |
| 46–60 | 35 | 31.0 |
| >60 | 04 | 03.5 |
| Mean | 40.62 | |
| Standard deviation | 11.73 | |
| Marital status (categorical) | ||
| Single | 33 | 29.2 |
| Married | 74 | 65.5 |
| Divorced | 1 | 00.9 |
| Widowed | 5 | 04.4 |
| Level of education (categorical) | ||
| None | 04 | 03.5 |
| Basic | 14 | 12.4 |
| Secondary | 24 | 21.2 |
| Tertiary | 64 | 56.6 |
| Postgraduate | 07 | 06.2 |
| Scale of production (ratio) | ||
| <100 | 31 | 27.4 |
| 100–300 | 35 | 31.0 |
| 301–500 | 15 | 13.3 |
| >500 | 32 | 28.3 |
| Mean | 613.40 | |
| Standard deviation | 782.64 | |
| Household size (ratio) | ||
| 1–3 | 32 | 28.3 |
| 4–6 | 66 | 58.4 |
| 7–9 | 11 | 09.7 |
| >9 | 04 | 03.5 |
| Mean | 04.62 | |
| Standard deviation | 02.24 | |
| Occupation (Categorical) | ||
| Primary | 44 | 38.9 |
| Secondary | 69 | 61.1 |
| Experience (Years) | ||
| 1–4 | 44 | 38.9 |
| 5–8 | 23 | 20.4 |
| 9–12 | 19 | 16.8 |
| 13–16 | 13 | 11.5 |
| >16 | 14 | 12.4 |
| Mean | 08.30 | |
| Standard deviation | 06.75 | |
| Monthly income (₦) | ||
| <50,000 | 33 | 29.2 |
| 50,001–100,000 | 51 | 45.1 |
| 100,001–150,000 | 21 | 18.6 |
| >150,000 | 08 | 07.1 |
| Access to extension services (categorical) | ||
| Yes | 28 | 24.8 |
| No | 85 | 75.2 |
| Access to credit (categorical) | ||
| Yes | 19 | 16.8 |
| No | 94 | 83.2 |
Poultry farmers’ willingness to pay for agricultural insurance
| Bid | Percentage (Frequency) |
|---|---|
| Not willing to pay | 52.4 (55) |
| Willing to pay 10% | 42 (21) |
| Willing to pay 20% | 46 (23) |
| Willing to pay 50% | 12 (6) |