Risk Attitudes and Crop Insurance Choices of Cotton Farmers in Hanumangarh
Price: ₹ 500
Author: Sampat Lakhran, Sheela Kharkwal, Shivraj Kumawat and B.K. Bhinchhar
Author Address: Research Scholar, Assistant Professor, SKN College of Agriculture, Sri Karan Narendra Agriculture University, Jobner-Jaipur-303329 (Rajasthan)
Keywords: Cotton, insurance, PMFBY, probit analysis, risk perception.
JEL Codes: C25, D81, Q12, Q14.
Abstract
The present study examined the factors influencing farmers' willingness to pay for crop insurance using a probit model. The results revealed that 96.67 per cent of farmers perceived pests and diseases as high-risk threats. A large proportion of farmers (82.5 per cent) exhibited risk-preferring behaviour, while only 17.5 per cent were risk-averse. The probit estimates indicated that higher income, stronger risk perception, farming experience, and training significantly increased the likelihood of purchasing insurance. In contrast, higher premium costs, risk-preferring attitudes, and older age of household heads negatively affected adoption. The findings suggested the need for targeted policy interventions, including premium subsidies, enhanced risk awareness programmes, crop-specific insurance design, and increased investment in pest and disease management innovations.
Description
Indian J Econ Dev, 2026, 22(2), 335-342
https://doi.org/10.35716/IJED-25135