Determinants of the adoption of agricultural insurance in Burkina Faso

Abstract

Natural hazards pose a growing threat to farmers. In the face of these risks, insurance provides important protection for forest owners. However, agricultural insurance take-up rates remain very low. The objective of this research was to analyze the factors that influence farmers' decisions to take out agricultural insurance. The data comes from the Permanent Agricultural Survey (EPA) for the 2021-2022 season, which surveyed 5,250 producers in all regions of Burkina Faso. The data is national in scope. A probit model was used. The results show that several factors significantly influence the purchase of agricultural insurance, including membership in a farmers' organization, the fact that the producer is in an agro-climatic zone with average or abundant rainfall, the level of education and experience in agricultural production.