The Role of Agricultural Insurance (Crop Sector) in Uganda

The study sought to investigate factors that lead farmers to buy or not to buy crop insurance in Muhanga town council in Kabale District. In this dissertation the researcher outlines summary of findings based on objectives of the study. Descriptive statistics of data were computed before correlation analysis and Probit regression. It can be recommended that more advertisements should be done not only in Muhanga town council but also in other areas where farming is the main economic activity. This will promote and lead to an increase the number of farmers buying crop insurance since they were found to have a positive coefficient. Then males should also be encouraged to engage themselves in agriculture farming so as to boost the demand for crop insurance. Premium is one of the main reasons that can engage farmers to buying crop insurance. This is because when the premiums are high they discourage farmers may be because they are investing their income in other investments or cannot afford to pay the high premiums which reduces their demand and need for farmers to buy crop insurance.