An Analysis of Rice Farmers' Preference for Crop Insurance Features: The Case of Cawag, Zambales

Date

5-2022

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Normito R. Zapata, Jr.

Committee Member

Juan Paulino S. Trespalacio, Junior

Abstract

This study was primarily conducted to analyze the preferences of rice farmers in Cawag, Zambales in terms of crop insurance. The objectives of this study were specifically to: (1) present the crop insurance sector in Cawag, Zambales; (2) describe to socio-economic and farm characteristics if insured and uninsured rice farmers in Cawag, Zambales; (3) describe how farmers' socio-economic characteristics and farm characteristics affect their preferences for crop insurance; and (4) Formulate recommendations that can increase the insurance adoption among rice farmers in Cawag, Zambales.

Given the following objectives, descriptive and analytic research designs were used in this study. A total of 104 respondents were chosen through stratified random sampling. Fifty-one belonged to the group of rice farmers without crop insurance, 44 belonged to the group of rice farmers with free crop insurance from PCIC, and 9 belonged to the group of rice farmers with paid crop insurance from PCIC through the Kazama Grameen Microfinance Inc. Data obtained from the respondents were analyzed using descriptive statistics and the different logistic regression models, such as multinomial logistic regression model, ordinal regression model, and the binary logistic regression model.

The results of the study showed that there was a little variation in terms of the socio-demographic characteristics and farm characteristics of the respondents insured and uninsured rice farmers. They mainly differed in educational attainment, monthly income, area of farmland, access to credit, and perception of rice insurance effectiveness. The variables that had significant influence on farmer's preference for rice insurance features were monthly income, seminar/training on farming, civil status, educational attainment, years of farming, number of children, and area of farmland.

The majority of the respondents would like to use crop insurance as one of their risk management strategies to prevent agricultural losses as long as the design of the program is aligned to their needs and demands. The majority of the respondents preferred risk cover wit one specific agricultural risk, insurance premium between Php 501-800, high coverage level, and the use of E-wallet as a mode of paying premium payment and claiming of insurance indemnity. In terms of nature of coverage, the respondents would like an insurance that include both crosp and social benefits, and to be involved in designing rice insurance programs. Lastly, the respondents would still prefer a face-to-face application process but a significant number of farmers would want an online application.

This study recommended the Philippine Crop Insurance Corporation to tailor-fit their insurance products based on the needs and wants of the farmer population in a barangay. Moreover, the PCIC must adopt a bottom-up policy formulation approach to increase acceptance and confidence on crop insurance among rice farmers. The PCIC should consider adopting online application process, online payment of premium, and online indemnity claims to make rice insurance programs highly accessible. To make rice insurance enticing, the rice insurance should be marketed in a bundle such as rice insurance with social benefits and rice insurance that also covers livestock losses. Lastly, the PCIC should give farmers the option to pay premium through their produce. For future researchers, it was recommended to conduct in-depth studies about why some variables had certain effect on farmers' rice insurance preferences.

Language

English

LC Subject

Crop insurance, Rice farmers--Philippines

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2022 M17 A44

Notes

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Document Type

Thesis

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