Abstract:
Insurance penetration remains very low in developing countries, including Tanzania. Many
African countries are still in the pilot stage of implementing agricultural insurance, and as a
result, many issues concerning the subject remain unexplored. Following that, this study were
carried out to assess farmers' willingness to pay for agricultural insurance services, with three
major factors which are farm size, farming experience and farm income. The study employed
a descriptive research design, in which a sample of 100 sunflower farmers in Meru district
were contacted via questionnaire, and officials working in insurance companies, particularly
those offering agricultural insurance services, were contacted via face-to-face interview. The
data collected were analysed descriptively as well as using correlation and multiple
regression. On the other hand, content analysis were applied in analysing the qualitative data
collected through interview method. The research findings revealed that the farming
experience and farm income were the significant factors that affect the farmers’ willingness to
pay for the agricultural insurance services. This implied that at the acceptable p – value the
two factors (farming experience and farm income) were significant factors whereas farm size
was insignificant. The study further recommended that the farmers should be provided with
the intensive awareness sessions concerning agricultural insurance services, agro business
basic skills and financial management skills, which will help them to improve their farming
activities. In addition to that, the provision of the recommended skills will increase the general
uptake of agricultural insurance services and boost the improvement of general living standard
of various farmers in the country.
