Determinants of Crop Insurance Acceptance among Agricultural Marketing Co-operative Societies in Kilimanjaro, Tanzania

Abstract

This paper assesses determinants of acceptance of Crop Insurance (CI) among Agricultural Marketing Co-operative Societies (AMCOS) in Kilimanjaro, Tanzania using binary logistic regression analysis. A cross-sectional research design was employed whereby 110 Agricultural Marketing Co-operative Societies (AMCOS) were sampled using simple random sampling technique. Data were collected using household survey, interview and documentary review methods. The study established that experience of AMCOS, AMCOS’ deposits, AMCOS’ savings and AMCOS’ shares positively impact willingness of the AMCOS members to accept crop insurance. Other positive predictors were: Sales of produces, price of produces, education of AMCOS manager and Chairperson. On the other hand, amount of premium negatively impacted the decision of AMCOS members to accept crop insurance. It is recommended that: AMCOS must take initiatives to increase their amount of deposits, savings and shares because they have a potential to influence positively the ability to pay for crop insurance. The Government of the United Republic of Tanzania through Tanzania Cooperative Development Commission (TCDC) and Tanzania Insurance Regulatory Authority (TIRA) should encourage Insurance service providers to reduce the amount of premium in order to attract farmers to insure their crops.