The Impact of Agricultural Insurance on Investment in AgronomySub-sector of khorasan Razavi Provience

Investment in the Agricultural Sector is considered as special importance. Basedupon some reasons such as high risk of agricultural crops production, insufficientinvestment in this sector is not conducted. Agricultural crops insurance isconsidered as one of the most appropriate strategies for dealing with risk anduncertainly in agricultural sector. In this study, effects of agricultural insurance onagriculture sub-sector investment in of Khorasan Razavi province is discussed byusing multilevel modeling. To collect required data and information for this study,two steps cluster sampling method is used. Required information is collected byusing interviews and questionnaires from 595 farmers in agricultural years 2013-14. Results from estimation of four levels model showed that a part of investmentdissimilarities is related to placing the farmers at different levels (Climate, cityand insurance). The results also showed that factors such as loan, the insuranceyear, the insured level, lead to significant and positive effect on investment andtype of available water source have significant and negative effect on investment.According to this study, it is suggested that in order to achieve effectiveagricultural crops insurance, offered insurance services should be consideredbased on the climate type and each province cities.