Factors affecting Adoption of Crop Insurance in Bihar

Multistage Stratified Random Sampling was used for selecting two villages in each of the three Agro-Climatic Zones of Bihar. From each selected village, 100 farmers were interviewed. Based on the data collected on age, education and category, multiple regression equation was fitted. Age, education and category contributed significantly on adoption of crop insurance. Age being the most important factor of adoption contributed about 50% towards adoption. It was observed that younger farmers with larger land holding adopt more crop insurance. It was also observed that with the increase in bank branches, adoption rate increased (r = 0.982). Further it was found that the factors age, education and category were not independent.