National agriculture insurance scheme adoption among farmers: A factorial analysis in J&K state

Agriculture crop insurance has an important role in agricultural production and is a tool to support farmers against threats. Investigation of factors affecting farmers’ adoption of national agriculture insurance scheme strategy was the objective of this study. The research was conducted in Jammu and Kashmir State, India. Survey was the research method, and data was collected by questionnaire and schedule interview. Data were analyzed by Excel and SPSS 18 Version soft ware. Findings revealed that the farmers with higher rate of Agriculture crops insurance adoption, were younger with higher level of literacy, they had more crop area and more income, they had more awareness towards the goals and advantages of crop insurance, they often consult with other farmers and they have more participation in training classes and sessions. Also, rate of their contact with agricultural agents and insurance agents was higher, they more participated in extension lectures and more visited crop insurance company’s activities. The results revealed that four independent variables explain adoption of agriculture crop insurance. Consult with other farmers is the main independent variable. The variables affecting crop insurance (31 variables) were classified to nine factors according to factor analysis technique. Extension- education factor, economic factor, communication channels factor, opinion leadership factor, facility factor, confidential factor, supervision factor, and diversity factor are the factors. Based on the research findings, some recommendations are presented at the end of the paper.