Effect Of Weather Variability On Selected Arable Crop Insurance In South-Western Region Of Nigeria (1990- 2014)

Ajiboye, B. O. and Adedeji, I. A. and Bamiro, O. M. and Otunnaiya, A.O. Effect Of Weather Variability On Selected Arable Crop Insurance In South-Western Region Of Nigeria (1990- 2014). Nature and Science.

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Abstract

Farmers have been employing various ways of adaptation to the effect weather variability. Agricultural insurance is seen as one of the best strategies to address farm risks and encourage the affected farmers to get back to business and achieve better and quality yields. This study assessed the effect of weather variability on crop insurance payout method of the Nigerian Agricultural Insurance Corporation (NAIC). The framework used consists of crop yield models, crop yield variance and the insurance payout estimation methods employed to help the affected farmers with the challenges. Primary and secondary data were used for this study. The insured farmers were randomly selected from the insurance policy register of NAIC while the uninsured farmers were selected from the Federal Ministry of Agricultural, Ibadan branch. The secondary data includes weather variables and crop yield data in South- West, Nigeria from 1990 to 2014. The data were collected from the Nigerian Meteorological Station (NIMET). The results showed that the changes in weather affected crop yield levels and variability, rainfall and temperature increases are found to increase yield level and variability. On the other hand, the decrease in yield was caused by heat stress; this is a function of reduced rainfall days induced by the temperature rise. The results also identified that the insured farmers are less productive than the uninsured farmers in term of crop production. This shows that the insured farmers took insurance policies as a pre- requisite to obtain credit from the financial institution which might have been diverted into another thing. An adjusted R2 indicated the proportion of the variation in output of both insured and uninsured farmers. A value of 93.52% was obtained for the specify function of the insured farmer as compare to 84.38% of the uninsured farmer and 90.66% for the pooled result of the two groups of farmers.

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