DETERMINANTS OF SMALL SCALE POULTRY FARMERS’ WILLINGNESS TO ENROLL IN INSURANCE AND RISK SCHEME IN ONDO STATE

Agricultural production in Nigeria is highly vulnerable to risks that threaten farmers’ livelihoods, particularly in the poultry sector where disease outbreaks, feed contamination, theft, and market fluctuations are common. This study assessed the willingness of small-scale poultry farmers in Ondo State to participate in agricultural insurance and risk management schemes. The specific objectives were to describe the socio-economic characteristics of respondents, examine their awareness and access to insurance, identify major risks and constraints to enrollment, determine the perceived benefits, and test hypotheses on factors influencing willingness to adopt insurance. A multi-stage sampling technique was used to select 120 poultry farmers from the study area. Primary data were collected through structured questionnaires and analyzed using descriptive statistics, correlation, and Chi-square tests. Findings revealed that poultry farming was dominated by middle-aged farmers with a mean age of 42.9 ± 6.6 years, the majority being male (93.2%) and married (97.5%). The mean household size was 5.3 ± 1.4, mean monthly income was ₦125,725 ± 68,673, and mean years of experience was 7.9 ± 3.1. Awareness of insurance was universal (100%), yet actual enrollment was very low (22.9%). The most critical risks identified were disease outbreaks, feed contamination, and theft. High premium costs (mean = 1.98 ± 0.18) and lack of trust (mean = 1.68 ± 0.47) were the most severe constraints. All respondents unanimously rated financial protection, emergency support, peace of mind, business continuity, and savings encouragement as very important benefits (mean = 2.00 ± 0.00). Willingness to enroll was highest for disease outbreak coverage (92.4% very willing; mean = 1.92 ± 0.27). Correlation analysis showed that constraints were significantly and negatively related to willingness (r = –0.643, p = 0.000), while perceived benefits were strongly and positively related to willingness (r = –0.894, p = 0.000). Chi-square analysis revealed that educational level (χ² = 17.384, p = 0.006) and membership of social groups (χ² = 23.783, p = 0.002) significantly influenced willingness, while other variables such as gender, marital status, and occupation were not significant. The study concluded that while poultry farmers recognized the importance of insurance, participation remained low due to affordability and credibility challenges. It recommended premium subsidies, transparent claims processes, and cooperative-based delivery systems as effective strategies to enhance uptake and strengthen resilience in the poultry sector.