Factors Affecting Rice Farmers’s Decision to Participate in Weather Index Insurance in Chiang Rai Province

Abstract

Rice farming in Thailand accounts up to 46% of agriculture area countrywide; however, this career choice is sensitive to face the risks of climate fluctuations. This research attempted to develop the device for risk management resulted from climate change by using the weather index insurance based on temperature variation measurement. The study therefore aimed to survey demographic information of farmers, their awareness and impact from climate change. The study also aimed to investigate the factors influencing the farmers’ decision to participate in the weather index insurance. The data collection involved questionnaire distribution to 400 farmers in Chiang Rai province. The results indicated that 195 farmers showed an interest to purchase the weather index insurance, while 205 farmers showed no interest in this insurance scheme, but this showed nearly identical proportion. The analysis of factors influencing the tendency of farmers’ decision to
participate in the weather index insurance by using Binary Logistic Regression Model indicated that demographic factors, socioeconomic factors, and weather sensitivity for cultivation factors (altogether 16 factors) revealed up to 13 factors that influenced the farmers’ decision to participate in this insurance scheme. However, implementation of the weather index insurance for benefits and accessibility to farmers must consider other influencing factors as well as consistent advertising campaign and government support for long-term risk management due to climate change by using the weather index insurance based on temperature variation measurement in order to trigger the development and utilization of this insurance scheme for maximum benefits
of farmers nationwide