Examining the Determinants of Adoption of Livestock Insurance in Indian Punjab: A Binomial Logistic Model Approach

AbstractBeing a risky enterprise, the livestock sector seeks an effective risk-bearing mechanism. So, we devised this study to see the extent of livestock-insurance coverage, determinants for adoption and the factors that influence farmer’s decisions in adopting the livestock-insurance. Primary data were collected from 100 respondents comprising 42 as adopters and 58 as non-adopters. The Logit regression result revealed that the herd size, operational holding, milk yield and income from dairy enterprise are found to be positive and significant in adoption of livestock-insurance in the state. On the other hand, age, education and hospital distance are having a negative effect on the adoption of livestock-insurance from the selected households. Creating public awareness through a coordinated effort of all the stakeholders is needed for popularizing insurance uptake among the farming community. Developing a separate database of dairy animals, broad coverage of diseases would also enhance the adoption of livestock insurance in the state.