Study of Factors Affecting Insurance Acceptance by Paddy Farmers in Mazandaran Province (A Case Study in Babol County)

Insurance of agricultural products as a new tool for minimizing the risk of losses arising from volatility in the agricultural sector has been identified. The success of insurance policies in the agricultural sector is depend on acceptance of insurance by the farmers in these parts. The present study is surveying factors influencing acceptance of insurance by paddy farmers in Mazandaran province using logit and probit models in 2010-2011. Data were collected via implementing 73 questionnaires in Babol county. The results of this study indicate that the logit model is relatively better than the probit model and percentage of correct predictions of the logit model was 75%. Also، the survey results indicate that income، having another job and corporation with experts of extension and contribute in the promotion class had a positive effect on the acceptance of insurance. But self consumption and age of farmer had a negative effect. According to the findings، the main reasons of insurance rejection by paddy farmers would cover the following cases: incomplete compensation of loss، Lack of access to insurance brokers، don''t promote of insurance، small ground، high premiums and lack of adequate information about condition of insurance.