Rice Farmers' Awareness, Knowledge, Perception and Adoption of Traditional Insurance and Weather Index-Based Insurance, Malaybalay, Bukidnon, 2019

Date

12-2019

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Marilyn M. Elauria

Committee Member

Marilyn M. Elauria, Antonio Jesus A. Quilloy, Agham C. Cuevas

Abstract

The study was conducted to determine awareness, knowledge, perception, and adoption of traditional insurance (Tl) and weather index-based insurance (WIBI) of90 rice farmers in Malaybalay, Bukidnon. Regarding the rice farmers' insurance awareness, the farmers were already considered aware on the insurance once they were able to disclose who or where did they learn about it. Their knowledge level on the insurance they adopted were identified based on the respondents' total number of correct answers in a true-or-false test. Then, the Likert scale was used to measure the respondents' perception on insurance. The relationship between their socio-demographic profile and insurance adoption was determined through binary logistic and multinomial logit regression analysis. That of their socio-demographic proile and perception on insurance adoption was then determined using chi-square test of independence and Spearman correlation. Similar inferential statistics were employed on the farmers' reasons behind their willingness to adopt a particular insurance. Furthermore, the net farm income (NFI) and return on operating capital (ROOC) of the rice farmers from their latest cropping season was also determined to which the costs and returns analysis was considered. Differences on these were tested using analysis of variance (ANOVA).

The farmers were more aware of TI than WIBI. Both TI-insured and WIBI-insured farmers in Brgy. Apo Macote and Brgy. San Martin, Malaybalay, Bukidnon have average knowledge level on the insurance they adopted based on a standard on classification of insurance knowledge level. They also showed neutral perception towards the adopted insurance. Through the marginal effects derived from the logistic regression, it was determined that the farmers' farm size and land ownership should be prioritized by the Philippine Crop Insurance Corporation (PCIC) in relation to the increase in TI adoption. Then, to enhance the adoption ofWIBI, the PCIC may only focus on the potential adopters' land ownership. Prioritizing the farmers' age, farm size, and sex, is necessary when marketing either of the insurance policies. ANOV A results indicated that there was no significant difference on the farmers' NFI and ROOC. Although the WIBI-insured farmers garnered the highest NFI, the Tl-insured farmers were the most efficient in terms of farm production as they had the highest ROOC while the least efficient were the non-insured rice farmers.

Recommendations given are prov1s1on of barangay-exclusive seminars about insurance, recognizing and showcasing the epitomes of insured farmers, PCIC's reconsideration of the farmers' characteristics when marketing insurance, boosting of agricultural extension services, consolidation of TI and WIBI, and lastly, provision of off­and non-farm livelihood opportunities improve the insurance adoption of the farmers.

Language

English

LC Subject

Agriculture

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2019 A14 N66

Document Type

Thesis

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