The Role of Rural Cooperatives in Insurance Demand for Agricultural Products in Systan District Using Tubit Multivariation Regression Model

In view of uncontrollable conditions such as acts of God, pests and diseases in production process on the one hand, and economic conditions like price and market fluctuations on the other hand, Agriculture is considered as of the most hazardous economic activities. Therefore, insuring agricultural products is regarded as a means for risk reduction and investment motivation. The current research aims at studying the role of rural cooperatives in systan district in insurance demand for agricultural products in the year 1388-89. The data were collected from 64 cooperatives and 220 insured and uninsured users through random sampling. Questionnaire was the data collection tool. Eviews5 and Tubit Model were applied for data analysis. According to the results obtained, one percent increase in the income and the age of the farmer have caused 0/06 and 4 percents increase respectively in insurance takeout. Also, rural cooperatives have witnessed ups and downs in insurance coverage of agricultural products in recent years with various socioeconomic factors affecting the level of insurance takeout by farmers. Therefore it is recommended that structural changes be made in agricultural sector and proper policies be set in cooperative sector by the government in line with insurance agricultural products.