Willingness to Pay for Weather Index Crop Insurance: Evidence from Daura and Mai’adua, Katsina State-Nigeria

Abstract

As climate change takes hold globally, weather related risk threaten the livelihood of farmers with negative implications for food and nutrition security. The continued dependence on rain-fed crop production by farmers in Katsina state increases their vulnerability to weather related risk. This paper assessed the major risk faced by farmers, the main coping strategies adopted, the effectiveness of the strategies adopted and the willingness to pay for weather index crop insurance. Primary data was collected using a structured questionnaire and analyzed by frequency distribution and percentages. The findings of the study revealed that drought was the major weather related risk experienced, as stated by 97.1% of the farmers. Also, intercropping is the major mitigation and coping strategy, as stated by 57.3% of the respondents. In addition, 72.5% of respondents stated that the strategies adopted were not effective in coping with the adverse effect of weather risk. About 78.9% were willing to subscribe to weather crop index insurance policy and pay N6, 208as premium per annum. The study recommends that weather crop index insurance policy should be implemented fully or as a pilot.