Determinants of Poultry Egg Farmers’ Participation in Livestock Insurance in Rivers State, Nigeria

Abstract

Poultry farming is exposed to several hazards caused by epidemic diseases, climate change and marketing among others which lead to losses of revenue. Yet, majority of poultry farmers do not neither shared nor transferred their hazards rightly. In the light of this, this study examined the determinants of poultry egg farmers’ participation in livestock insurance in Rivers State, Nigeria. Primary data were obtained with the aid of questionnaire and interview schedules from 120 farmers drawn through multistage sampling procedure. Descriptive statistics and Probit regression model were used to analyze the data. Results shows the mean age of the poultry egg farmers to be 45.21 years, years spent in formal education mean of 14.87 years, mean household size of five (5), and stock size of 1721 birds were obtained. 60.8% were aware of livestock insurance and about 35% of the farmers insured their farms. Probit regression result shows that access to credit facilities, stock size and household size were statistically significant determining the poultry egg farmers’ participation in livestock insurance scheme. Poor agricultural extension service delivery and delay in indemnity payment among others were constraints encountered in participating livestock insurance. The study recommends that extension agents in collaboration with the insurance company providers should educate poultry farmers on livestock insurance role in risk management. Also, insurance companies should endeavor to keep terms of contractual arrangements not to delay in indemnity payment to the farmers.