Nexus Between Agricultural Insurance And Economic Growth In Nigeria.

Abstract

E-mails: peaceadeolabanjo@gmail.com, oloyefx@gmail.com; ksaduloju@gmail.com Corresponding Author: peaceadeolabanjo@gmail.com ABSTRACT The present study is centered on the nexus between Agricultural insurance and economic growth in Nigeria. Agricultural Insurance is a valuable business risk management tool that provides farmers with financial protection against production losses caused by natural perils, such as drought, excessive moisture, hail, frost, wind and wildlife. The study made use of a survey research design and 50 farmers from Ijebu Igbo local government of Ogun State were administered questionnaires. The findings showed a positive significant correlation (r = .638, p <.01) between Agriculture Insurance scheme and economic growth. Also, Credit Scheme and Agricultural Insurance jointly significantly influenced economic Growth [(R2 = .543; F (2,49) = 27.978; p < .05)] which infers that Credit Scheme and Agricultural Insurance jointly accounted for about 54.3% of the variance observable in Economic growth. The study recommends that more awareness on agricultural insurance should be made to farmers and the need to be aware of the security the insurance scheme offers them which in actual sense will bring about increase in yield at minimum cost. Keywords: Agriculture, Agricultural Insurance, Credit Scheme, Economic Growth