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South African Journal of Agricultural Extension

versão On-line ISSN 2413-3221
versão impressa ISSN 0301-603X

Resumo

MUKWEVHO, H.; LUVHENGO, U.; LETSOALO, S.S.  e  LEKUNZE, J.N.. Smallholder Maize Farmer's Willingness to Join Index Insurance in Vhembe District: Limpopo Province. S Afr. Jnl. Agric. Ext. [online]. 2023, vol.51, n.3, pp.100-114. ISSN 2413-3221.  http://dx.doi.org/10.17159/2413-3221/2023/v51n3a14539.

Only a negligible proportion of smallholder farmers in South Africa have crop insurance to mitigate production risks. This article analyses the demand for index-based crop insurance by smallholder farmers in the Vhembe district of Limpopo Province in South Africa based on their willingness to join a proposed insurance product. Questionnaires were used to collect once-off data from smallholder farmers. The contingent valuation method was used to analyse the willingness to buy a crop insurance product. Analysis revealed that 86% of the farmers were willing to purchase index-based crop insurance. Further analysis using the Probit regression model found that age, farm size, and risk management strategies such as government assistance and crop diversification influenced smallholder farmers' willingness to join the proposed crop insurance products. This study has shown that smallholder crop farmers' willingness to join crop insurance is high in the Vhembe district. The study recommends awareness and education concerning crop insurance purchases for smallholder farmers.

Palavras-chave : Index-Insurance; Smallholder Farmers; Vhembe District; Willingness to Join.

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