The Impact of Cooperative Insurance on Farmers’ Productivity in Ekiti State, Nigeria
DOI:
https://doi.org/10.33062/mjb.v10i02.82Keywords:
Farmers Output (FQ), Agricultural Cooperative Insurance claims (ACIC) and Agricultural Cooperative Insurance Reserve (ACIR)Abstract
The study examined how cooperative insurance affects farmers' productivity in Ekiti State, Nigeria, from 1981 to 2021. Using the ARDL model. The study examined the effects of cooperative insurance claims and reserves on Ekiti State farmers' production, as well as the link between the two. Researchers evaluated agricultural cooperative insurance claims (ACIC) and reserves (ACIR) as possible predictors of farmers' output (FQ), a measure of productivity. In the near term, agricultural cooperative insurance claims greatly benefit farmers' productivity in Ekiti State, Nigeria. The agricultural cooperative insurance reserve instantly and positively impacts farmers' productivity in Ekiti State, Nigeria. The causation analysis shows a strong link between farmers' production and cooperative insurance. The data show a one-way link between farmer productivity (FQ) and agricultural cooperative insurance claims (LNACIC). In Ekiti State, Nigeria, cooperative insurance indices positively affect farmers' production, although agricultural cooperative insurance reserves (LNACIR) and farmer productivity (LNFQ) are not causally linked. The flow begins with farmers' productivity (LNFQ) and ends with agricultural cooperative insurance claims (LNACIR), although there's no recognized causal link. The federal government should prioritize financing and resources for cooperative organizations in Ekiti State Nigeria.
References
Abu, G. A., Odoemenem, I. U., & Ocholi, A. (2011). Determining optimum farm credit need of small scale farmers in Benue State. Journal of Economics and International Finance, 3 (10), 564–570.
Adams, B. T. (2019). Farm machinery automation for tillage, planting cultivation, and harvesting, handb. Farm, Dairy Food Mach. Eng. 115–131. https://doi.org/10.1016/B978-0-12- 814803-7.00005-1.
Adams, K. F. (2008). Risk perception and Bayesian analysis of international construction contract risks: The case of payment delays in a developing economy. International Journal of Project Management, 26, 31-38.
Adeyefa, F. K. A. (2013). Agricultural insurance: The Nigerian initiative, experience and prospects. Ibadan: Multiprint Concepts
Akinrinola, O. & Okunola, A. (2014). Evaluation of the effects of agricultural insurance scheme on agricultural production in Ondo state. Russian Journal of Agricultura and Socioeconomic Sciences, 28, 3-8.
Angima, C. B., & Mwangi, M. (2017). Effects of underwriting and claims management on performance of property and casualty insurance companies in East Africa. European Scientific Journal, 13 (13), 358-373.
Awotile, B. A., Alene, A., Abdoulaye, T., & Manyong, V. M. (2015). Impact of agricultural technology adoption on asset ownership: the case of improved cassava varieties in Nigeria, Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer; The International Society for Plant Pathology, 7 (6), 1239-1258.
Ayodele, O. (2012). Economic impact of agricultural mechanization adoption: Evidence from maize farmers in Ondo State, Nigeria. J. Agric. Biodivers. Res. 1, 25-32.
Azubuike, S. (2015). Rural insurance: Do evidence exist for insurance penetration in Nigeria? Journal of Social Sciences and Humanities, 2, 250-256.
Belton, B., Win, M. T., Zhang, X., & Filipski, M. (2021). The rapid rise of agricultural mechanization in Myanmar, Food Policy. 101, 102095. https://doi.org/10.1016/J.FOODPOL.2021.102095.
Blackwell, R. D., Miniard, P. W., & Engel, J. F. (2001). Consumer behaviour. Thomson. South Western Thomson Learning.
Borch, K. (2002). A theory of insurance premiums. Paper presented at the 11th seminar of the European Gr Boon, T.K. (2005). Do commercial banks, stock market and insurance market promote economic growth? An analysis of the Singapore economy. Working Paper of the School of Humanities and Sociual Studies, Nanyang Technology University.
Chilokwu, I. D. O., Akubuilo, C. J. C. & Agbasi, O. E. (2018). Effect of cooperative farmers’ insurance premium on the growth of agricultural gross domestic product in Nigeria. IOSR Journal of Engineering (IOSRJEN), 8 (4), 58-72.
Edwin, J. E. & Martin, J. G. (1997). Modern portfolio theory, 1950 to date. Journal of Banking and Finance, 21, 1743-1759.
Eleri, O. E., Uduka, I. K., Akuto, N., Onuvae, P. & Anwara, O. (2012). Towards a climate-based agricultural insurance reform in Nigeria. Presented at the workshop on legal and regulatory frameworks for agricultural insurance reform in Nigeria-protecting Nigeria’s farmers from climate change Kano hall, transcorp hilton hotel, 1-53.
Emami, M., Almassi, M., Bakhoda, H., &kalantari, I. (2018). Agricultural mechanization, a key to food security in developing countries: strategy formulating for Iran, Agric. Food Secur. 71 (7), 1-12.
FAO (2021). Protecting livelihoods: Linking agricultural insurance and social protection, Rome, 1-72.
Feinman, J. M. (2018). Contract and claim in insurance law. Connecticut Insurance Law Journal, 25 (1), 159-196
Hardaker, J. B. (2004). Coping with risk in agriculture. New York, Oxon: CAB International Publishing.
Hellin, A. R., & Hansen, J. (2017). Prospects for scaling up the contribution of index insurance to smallholder adaptation to climate risk, Climate Change, Agriculture and Food Security, 1-4.
International Monetary Fund (IMF) (2013). Statistics on the growth of the global domestic product from 2003 to 2013. IMF Working Paper. October.
Iyiola, O., Munirat, Y. & Nwufo, C. I. (2012).The modern portfolio theory as an investment decision tool. Journal of Accountig and Taxation, 4 (2), 19-28.
Jatto, A. N. (2019). Assessment of farmer’s awareness of agricultural insurance packages: evidence from “Farming is our pride” communities of Zamfara State, Nigeria. Agricultura Tropica Et Subtropica, 52 (2), 79-83.
Johnson, T. C. (2008). Volume, liquidity and liquidity risk. Journal of Insurance Economics, 87, 388-417
Jorgenson, D. W., & Schreyer, P. (2017). Measuring individual economic well‐being and social welfare within the framework of the system of national accounts. Review of Income and Wealth, 63, S460-S477.
Kahan, D. (2008). Managing risk in farming. Rome: Food and Agriculture Organisation.
Ladanyi, M. (2003). Risk methods and their applications in agriculture. Applied Ecology and Environmental Research, 6 (1), 147-164.
Laura, G. (2012). Risks in agriculture and opportunities of their integrated evaluation. Procedia-Social and Behavioural Sciences, 62, 783-790.
Lewbel, A. (1989). Household equivalence scales and welfare comparisons. Journal of Public Economics, 39 (3), 377-391.
Maggioni, M., & Turchetti, G. (2022). Fundamentals of the insurance business. Switzerland: Springer.
Mordi, C. N. O. (1995). Statistical techniques in economic research: regression and time series methods, Paper presented at the First Orientation and Training Workshop on Research Methodologies for Economists and Assistant Economists of the Research Dept, Central Bank of Nigeria Training School, Lagos, June 8-12.
Muhammad, A., & Lee, S. P. (2014) Factors of customer’s preference of visiting coffee shop in South Korea. International Journal of Sciences: Basic and Applied Research, 24, 252-265.
Nigerian Agricultural Insurance Corporation (NAIC) (1995). Operational Guidelines, Abuja, Nigeria.
Nlebem, B. S. & Raji, W. I. (2019). Impact of agricultural cooperative societies on farmers productivity and rural transformation in Etche Local Government Area of Rivers State. Global scientific journals, 7 (11), 353-367.
Olatunji, B. T., Adeola, O. O. & Kehinde, T. A. (2021). Household welfare status and crop insurance uptake by cocoa farmers in Ondo State, Nigeria. African Journal of Agricultural Research, 17 (7), 1031-1038.
Olayide, S. O. (2019). Characteristics, problem and significant of small farmer’s. In: small farmer’s in Nigeria, problem and prospects. By Emeka, J. A; Bello – Osagie, V. E. (eds). University of Ibadan.
Olubiyo, O. & Hill, G. (2006). An assessment of operation of Agricultural insurance scheme in Nigeria. African Journal of Food Agriculture, Nutrition and Development, 3, 293-312.
Olubiyo, S. O., Hill, G. P. & Webster, J. P. G. (2009). Econometric analysis of the impact of agricultural insurance on farming systems in the middle belt, Nigeria. African Journal of Food, Nutrition and Agriculture, 9 (6), 1406-1418.
Oluwatusin, F. M., Awoyemi, A.O., Harry A. B., Sedowo, M.O., Kolawole, A.O. & Abdu-Raheem, K. A. (2018). The impact of agricultural insurance scheme on the crop farmers’ assets in Ondo State, Nigeria. Stem Cell, 9 (3), 114-121.
Onyiriuba, L., Okoro, E. U. O., & Ibe, G. I. (2020). Strategic government policies on agricultural financing in African emerging markets, Agricultural Finance Review, 80 (4), 563-588. https://doi.org/10.1108/AFR-01-2020-0013
Rejda, G., McNamara, M., & Rabel, W. H. (2021). Principles of risk management and insurance (14th Ed.). London: Pearson
Samuelson, P. (1956). Social indifference curves, The Quarterly Journal of Economics, 70 (1), 1-22. https://doi.org/10.2307/1884510
Skees, J. R., Varangis, P., Larson, D. & Siegel, P. (2005). Can financial markets be tapped to help poor people cope with weather risks? Insurance against poverty. S. Dercon, Ed. Oxford: UNU-WIDER studies in development economics, Oxford University Press.
Toluwase, S. O. W. & Apata, O. M. (2013). Impact of farmers’ cooperative on agricultural productivity in Ekiti State, Nigeria. Greener Journal of Agricultural Sciences, 3 (1), 63-67.
Valgren, V. N. (1930). Fire safeguards for the farm. U. S* Dept. Agr. Fajnaers* Bulletin No. 1643. 1930.
Yin, J., Wang, Z., Zhou, M., Wu, L., & Zhang, Y. (2021). Optimized design and experiment of the threearm transplanting mechanism for rice potted seedlings, Int. J. Agric. Biol. Eng. 14, 56-62.
Yusuf, O. T., & Ajemunigbohun, S. S. (2015). Effectiveness, efficiency, and promptness of claims handling process in the Nigerian Insurance Industry. European Journal of
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Femi Ayorinde, AJAYI IBIDOLAPO EZEKIEL
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
