A Study of the Factors Affecting the Insurance Acceptance by Ornamental Plants Producers: A Case Study of Kohgiluyeh and Boyer Ahmad Province

Crop insurance is an appropriate way to overcome the risk in agricultural production sector and increase farmer’s peace of mind for their future income. In the agricultural sector of Kohgiluyeh and Boyer Ahmad, the risk of production is high due to the substantial losses of crops and other diseases and so is the income risk. Since most local farmers have low incomes and livelihoods, natural disasters and diseases can cause irreparable damages on their livelihood. In this regard, crop insurance is one of the most supportive mechanisms to reduce instability and confronting to the unpredictable nature of these risks. But insurance can be effective on the production and income only if factors affecting insurance demand by farmers are identified and it covers a wide range of farmers. The aim of this study is to investigate factors affecting the development of insurance acceptance by ornamental flowers producers in Kohgiluyeh and Boyer Ahmad province. In this study, data were collected by a questionnaire randomly and logit model was evaluated with an emphasis on the production of ornamental flowers. Results reflect the influence of multiple economic and social factors on demand and acceptance of insurance by farmers.