AGRICULTURAL INSURANCE AS A TOOL FOR MANAGING THE EFFECTS OF CLIMATE CHANGE BY FARMERS IN PLATEAU STATE.

Abstract

The study examined the impact of agricultural insurance on the effects of climate change in Plateau state. To achieve the research objectives of the study, structured questionnaire was used to collect data from 150 farmers and staff of some selected insurance companies in Jos Plateau state. Simple percentage method of data analysis was used to analyze the data collected through the use of questionnaire and chi-square was used to test the research hypothesis. Finding of the study reveals that agricultural insurance encourages farmers to adopt climate resilient practices during the period under review. Also, the result of the study showed that agricultural insurance helps farmers recover quickly from climate related losses. The result of the findings also revealed that climate resilient practices are essential for reducing the impact of climate related shocks in Nigeria. It was also found out from findings of the study that a significant relationship between climates change and agricultural insurance. Findings of the study also indicates that agricultural insurance helps mitigate the impact of floods and reducing financial risks associated with floods during the period under review. It was also found out from the result of the study that flood insurance is important in agricultural risk management strategy. The study recommended that: government should make policies that are aim at making agricultural insurance compulsory for farmers in Plateau and beyond giving the importance of insurance especially against risks related to climate change because of the impact of climate change on agriculture. Secondly, there is need for insurance companies to step up their education and sensitization of farmers on the importance of agricultural insurance because it is not all farmers that are aware of such products by insurance companies and finally, insurance companies should ensure prompt delivery and settlement of claims to those that suffer loss of any policy to serve as a motivation to others to key into the scheme.