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Impact of Agricultural Insurances on Food Security Among Smallholder Farmers in Adamawa State, Nigeria

Abdulaziz Ahmed Elwan, Mohammed Nasir

Abstract

This study examined the impact of agricultural insurance on food security among smallholder farmers in Adamawa State, Nigeria. Specifically, the study examined the impact of crop insurance coverage, livestock insurance, index-based weather insurance and input insurance on food security. The study was anchored on Expected Utility Theory and Risk Management Theory. A survey research design was adopted, while the population comprised farmers and agricultural cooperatives in Adamawa State. Due to the difficulty of determining the exact population, Cochran’s (1977) formula was employed to determine a sample size of 384 respondents. Primary data were collected through structured questionnaires, and multiple regression analysis was employed to analyse the data using SPSS version 20.0. Out of the 384 questionnaires distributed, 371 were successfully retrieved, representing a response rate of 96.6%. The regression results revealed that crop insurance coverage (β = 0.294, t = 4.689, p = 0.000) had a positive and statistically significant impact on food security. Similarly, livestock insurance (β = 0.226, t = 3.825, p = 0.000) had a positive and significant impact on food security. The study further established that index-based weather insurance (β = 0.203, t = 3.527, p = 0.000) had a positive and significant effect on food security, while input insurance (β = 0.263, t = 4.254, p = 0.000) also had a positive and statistically significant influence on food security. The model summary indicated an R-squared value of 0.618, suggesting that the four dimensions of agricultural insurance jointly explained 61.8% of the variation in food security. The study concluded that agricultural insurance is an important mechanism for improving food security by reducing agricultural risks, protecting farmers' investments and strengthening their resilience to production-related shocks. The study recommended that government agencies and agricultural insurance providers should expand access to affordable crop and livestock insurance, promote index-based weather insurance and develop accessible input insurance schemes to enhance food security among smallholder farmers in Adamawa State, Nigeria.

Keywords

Agricultural insurancecrop insurancelivestock insuranceindex-based weather insuranceinput insurancefood securitysmallholder farmers. P-ISSN 2695-186X

References

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