Agricultural Insurance Practices and Production Continuity Among Smallholder Maize Farmers in Ogun State, Nigeria
Abstract
Agricultural insurance is an important financial instrument intended to reduce agriculture related risks and achieve sustainable crop and livestock production. This study investigates the relationship between agricultural insurance practices and production continuity among smallholder maize farmers in Ogun State, Nigeria. Key variables examined include insurance awareness, enrolment levels, premium affordability, claims accessibility, and the perceived reliability of insurers serving as indicators of agricultural insurance practices. A multistage sampling technique was used to select 133 smallholder maize farmers across major agricultural zones in Ogun State and information was elicited using a structured questionnaire. Data were analysed using descriptive statistics and five-point Likert scale to assess the perceived relationships between agricultural insurance variables and production continuity measures. The findings show that many of the farmers understood what agricultural insurance means (45.0%) and have registered with an agricultural insurance scheme (39.2%). Many strongly agreed to improved output (41.7%), confidence to invest in fertilisers and improved seeds (50.8%) and quick recovery and continuity (46.7%) as importance of insurance enrolment. Effective participation in agricultural insurance significantly enhances farmers’ resilience to climate shocks (35.8%), reduces production risks (53.3%), and promotes sustainable farm management practices (45.8%). However, challenges such as fear of unfair claim repayment (65.0%) and high premium costs (65.8%) may hinder optimal insurance uptake. The study concludes that improving access to affordable and transparent agricultural insurance will strengthen the sustainability of smallholder maize production in Ogun State. It recommends enhanced public–private partnerships and policy incentives to foster inclusive insurance adoption and sustainable agricultural development.