Profitability and prospects of crop insurance of some selected crops in Kishoreganj district of Bangladesh

Abstract

Crop insurance is an essential tool for managing risk in agriculture. The primary goal of this study was to investigate how farmers felt about crop insurance and their willingness to pay for it. . The study was conducted to profile the socioeconomic characteristics, measure the profitability of crops, assess farmer’s willingness to pay crop insurance, and determine the factors that influence willingness to pay (WTP). A total of 107 farmers were chosen at random from Kishoreganj district in Bangladesh. The data were collected through a field survey using a semi-structured interview schedule. Karl Pearson’s correlation coefficient method was used. The study found that the majority of farmers have only had primary education or less. About one-third of the respondents could make savings of ten to twenty thousand taka each year. The most profitable crops were vegetables, jute, and wheat. Rice’s profitability, however, was hardly positive. Factors such as age, education, occupation, net income, and cultivable area have a positive correlation with the WTP for crop insurance for all crops except rice. However, the uptake of crop insurance is still relatively low in Bangladesh, and more efforts are needed to increase awareness and promote the benefits of crop insurance among farmers.