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Journal: JOURNAL OF AGRICULTURAL ECONOMICS RESEARCH | Year:1388 | Volume:1 | Issue:1 | Start Page:17 | End Page:34

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Title

EFFECTS OF AGRICULTURAL CROP INSURANCE ON FARMERS' RISK AVERSION AND INCOME DISTRIBUTION: A CASE STUDY OF FARS PROVINCE

Writers

TORKAMANI J.

Pages

 Start Page 17 | End Page 34

Abstract

 In this paper, effects of agricultural risk management policies on farmers' aversion to risk as well as their INCOME DISTRIBUTION were discussed.Then, by using the Gini coefficient, effects of current AGRICULTURAL INSURANCE policies on farmers' INCOME DISTRIBUTION were evaluated. Also, agricultural crop insurance demand function and farmers' aversion toward risk were estimated by using the Goodwin model and ELCE method, respectively.Data were collected by interview with 170 farmers in Fasa region of Fars province. The sample was selected by using a stratified random sampling method. Results of the study revealed that, agricultural crop insurance had positive effect on INCOME DISTRIBUTION and caused farmers degree of RISK AVERSION to be reduced. Also, area under wheat cultivation, ratio of indemnity payment to insurance premium, farmers' age, and level of education, experience and land ownership had positive effect on demand for AGRICULTURAL INSURANCE.

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