Role of Insurance in Broiler Farms Risk Management (A Case Study of Rudbar County)

Agriculture sector faces risks caused by natural damaging events. So, it is necessary to predict, counteract and mitigate the risks of agricultural activities to increase investment security, to identify risks and to practice risk management methods, in which insurance has a special niche as a risk counteraction and mitigation measure. The objective of this study was to study the role of insurance in risk management of broiler farms in Rudbar County in Guilan Province in 2016. The statistical population was composed of 121 broiler chicken farms that were active in Rubdar County, Iran in 2013-2015, out of which 55 farms were selected as the sample according to Bartlett Table. Data were collected by interview and a questionnaire whose validity was confirmed by a panel of experts and whose reliability was estimated to be 73% by Cronbach’s alpha. Results of stepwise regression showed that the main production parts affected by risk factors included hygiene and control, technical factors including ventilation and temperature, nutrition, disease prevention, and chicken hatching capacity. Results of the test of variable correlations showed a negative, significant relationship of dependent variable (risk management) with hatching capacity, hygiene factors, technical factors, nutrition, disease prevention, and insurance. Also, risk management was found to have no relationship with farm managers’ age and farming experience.