From Perception to Decision: Analysing Constraints and Determinants of Voluntary Agricultural Insurance Uptake among Nigerian Rice Farmers

Constraints	Mean Score	Rank
Inflexible premium	51.80	1
Lack of trust in insurance companies	50.50	2
Low farm income	50.39	3
Narrow insurance coverage	50.20	4
High premium cost	49.99	5
Inadequate insurance education	49.94	6
Complex documentation	49.90	7
Delay in claim settlement	49.67	8
Limited access to insurance agents	48.92	9
Poor awareness	48.70	10

[i] Source: authors analysis computation.

Table 2.

Variance Inflation Factor (VIF) results

Variable	VIF	Tolerance (1/VIF)
Age	2.126	0.470
Years of education	1.054	0.949
Farming experience	2.418	0.414
Membership	1.397	0.716
Farm size	1.236	0.809
Extension contact	1.181	0.847
Farm income	1.145	0.873
Risk experience	1.286	0.778
Trust in insurance	1.215	0.823
High premium	1.620	0.617

[i] Source: own elaboration.

Table 3.

Logit Estimates, Odds Ratios and Average Marginal Effects of Determinants of Farmers’ Willingness to Patronize Agricultural Insurance

Variable	Coefficient (β)	Std. error	z-value	Odds ratio	AME (dy/dx)	p-value
Constant	0.4821	0.8010	0.602	1.619	–	0.547
Age	–0.0087	0.0154	–0.563	0.991	–0.0020	0.573
Years of education	–0.0603**	0.0291	–2.069	0.942	–0.0137**	0.034
Farm experience	–0.0117	0.0158	–0.739	0.988	–0.0026	0.458
Membership	0.1088***	0.0270	4.034	1.115	0.0247***	0.000
Farm size	0.1151	0.2740	0.420	1.122	0.0261	0.674
Extension contact	–0.0301	0.0592	–0.509	0.970	–0.0068	0.610
Farm income	–0.0000	0.0000	–1.316	1.000	–0.00000042	0.185
Risk experience	–0.2125	0.1807	–1.176	0.809	–0.0482	0.236
Trust insurance company	0.6134	0.3842	1.596	1.847	0.1392	0.105
High premium cost	0.1644	0.2886	0.570	1.179	0.0373	0.568
Knowledge of insurance	–0.0742	0.2616	–0.284	0.928	–0.0168	0.777
Log-Likelihood	–218.83
LR Chi-square	33.68
Prob > Chi-square	0.0004
McFadden Pseudo R²	0.071
AIC	461.67
Number of observations	340

[i] Significant at *** 1%, ** 5%.

[ii] Source: own elaboration.

References

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Articles in this issue

DOI: https://doi.org/10.17306/j.jard.2026.3.00025r1 | Journal eISSN: 1899-5772 | Journal ISSN: 1899-5241

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Language: English

Page range: 281 - 288

Accepted on: Jul 27, 2026

Published on: Aug 31, 2026

Published by: Poznań University of Life Science

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

agricultural insurance,

binary logistic regression,

Garrett’s ranking technique,

Nigeria,

constraints

Related subjects:

Business and economics,

Political economics,

Political economics, other,

Business management,

Business management, other,

Life sciences,

Life sciences, other,

Social sciences,

Political science,

Political science, other

© 2026 Ayoyinka Nurudeen Jatto, Matthew Olufemi Adio, Medinat Adeola Abdulaleem, Abisola Adenike Ogunkunle, published by Poznań University of Life Science
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 81 (2026): Issue 3 (September 2026)