Nigeria Agricultural Insurance System (Nais): Prospect, Achievement As Well As Problems

insurance that doesn t check credit,auto insurance quotes suspended license,home insurance las cruces,cheap and easy auto insurance,frank and associates insurance,nj auto insurance,business car insurance quotes,get car insurance,best auto insurance quotes comparison,vela insurance careers,auto insurance hawaii,gem state insurance,aaa insurance portland maine,car insurance quotes syracuse ny,is jetty insurance good,antietam insurance hagerstown,shumway insurance utah,cusseta insurance,average geico motorcycle insurance cost,small business health insurance credit,auto insurance tyler,automobile insurance,get car insurance with checking account,lowest auto insurance nj,car insurance quotes portland oregon,car insurance now,american business coalition health insurance,car insurance now pay later,auto insurance montana,complete auto insurance,free automobile insurance quotes,geico car insurance ct,ace usa insurance company,geico insurance business to business,ways to get cheap car insurance,business motor insurance,washington state car insurance requirements,what is full coverage in auto insurance,car insurance 80210,cheap car insurance for young female drivers,compare auto insurance quotes nj,hartford business insurance reviews,auto insurance rules,i need car insurance right now,auto insurance for non us residents,wainwright insurance,pearl auto insurance,renters insurance schaumburg il,united automobile insurance company miami gardens fl 33169,car insurance cash settlement option,car insurance longview wa,cross insurance careers,bethel insurance,college highway insurance,g and g insurance,get auto insurance with suspended license,affordable auto insurance gordon highway,assigned risk auto insurance,get homeowners insurance quotes online,wells fargo platinum card rental car insurance,geico car insurance adding new driver,shop car insurance texas,auto insurance score factors,auto insurance companies in ohio,motorists insurance careers,pennsylvania auto insurance minimum requirements,cheap auto insurance on line,property damage auto insurance,ace group insurance,iowa bankers insurance,aarp medical insurance quote,small business health insurance kentucky,what happens when you cancel a whole life insurance policy,speeding insurance increase,auto insurance south dakota,buying a new car insurance grace period,auto insurance without license in texas,start car insurance with checking account,workers comp insurance for small business,aag car insurance,buy insurance online with checking account,direct auto insurance springfield tn,rehab insurance,bhi insurance,caught without insurance,best non standard auto insurance,geico auto insurance colorado,lawn care business insurance quotes,online business liability insurance,is first republic bank fdic insured,car insurance lander wy,decker insurance morenci mi,least expensive auto insurance,need car insurance,online quotes for cheap car insurance,durand insurance,what car insurance coverage do i need,insuring uber's app on gap,car insurance quotes memphis tn,nautilus insurance careers,car insurance for people with bad driving records,insurance buy back,munson insurance arkansas city ks,how to find car insurance quotes,shop small business health insurance,find car insurance quotes,auto insurance toledo ohio oh,chase ink preferred travel insurance,north dakota car insurance,usaa homeowners insurance payment mailing address,attune insurance careers,auto owners insurance richmond va,boston auto insurance quotes,wiba insurance,geico auto insurance knoxville tn,commerce auto insurance quote,commercial truck insurance providers,geico car insurance office,car insurance quotes tucson az,auto insurance miami gardens,auto insurance requirements in massachusetts,cse insurance careers,zenith insurance careers,car insurancecar insurance,pa auto insurance,principal insurance careers,auto insurance florida,buy vehicle insurance online,alabama auto insurance,bmw auto insurance,cheap car insurance quotes dallas tx,going to the er without insurance,geico car insurance id number,texas vehicle insurance,car insurance quotes with low deposits,car insurance ri,what companies pay for health insurance,auto insurance in kansas city,best home insurance leads,what insurance coverage do i need for a financed car,bare minimum car insurance california,best rates insurance westbrook ct,geico car insurance usa,insurance office of america careers,cheap auto insurance ct,ironshore insurance careers,anton insurance valparaiso,which insurance companies,country auto insurance quote,life insurance rates for 30 year old,affordable car insurance maryland,buy health insurance for small business,bradley insurance cleveland tennessee,car insurance cost in massachusetts,cheap auto insurance in utah,florida group health insurance plans,car insurance quotes sc,can you borrow against accidental life insurance,best car insurance companies in ny,car insurance anti theft device,how is geico car insurance,cost of cyber liability insurance,alligator auto insurance,auto insurance pahrump nv,lmc insurance,car insurance quotes for suspended license,aspen insurance careers,home insurance duluth mn,blackmer insurance,most affordable car insurance in michigan,friendswood tx insurance,next insurance careers,team focus insurance group careers,texas department of insurance careers,auto insurance discounters noland road,cost of crna malpractice insurance,usaa life insurance change of beneficiary form,cheapest auto and home insurance in texas,does full coverage insurance cover towing,draxler insurance,full coverage auto insurance colorado,ace american insurance workers comp,can i get car insurance online,company private health insurance,scott insurance greensboro,csaa auto insurance,personal liability insurance for business owners,sunz insurance careers,virginia homeowners insurance companies,auto insurance quotes louisiana,car insurance redmond,buy insurance direct,compare vehicle insurance,hotwire car insurance,insurance companies in searcy ar,car insurance companies who accept foreign ncb,rps insurance careers,iori insurance,missouri auto insurance,auto insurance on line,how to exchange insurance information after an accident,nc auto insurance,car insurance albert lea mn,good price for car insurance,how long can an insurance agent's license be suspended,purchase general liability insurance,auto insurance vancouver,insurance for own business,affordable car insurance hawaii,aarp auto insurance ratings,auto insurance grace period,parker douglas insurance,small business health insurance program,window washing business insurance,country insurance colorado,how to get insurance money from an accident,which car insurance comparison site is best,clp insurance,free car insurance quotes,rogers insurance tullahoma,small business insurance coverage,usaa life insurance beneficiary designation form,best insurance galveston texas,cheap auto insurance nashville tn,lawyers for car insurance claims,texas insurance agency houston tx,coventry insurance buy back,american family insurance la salle co,quick issue life insurance,cheap auto insurance maine,summerville auto insurance,alcohol rehab covered by insurance,auto insurance quotes albuquerque nm,cigna medicare supplemental insurance plans,free auto insurance quotes online comparison,renters insurance evansville,instant auto insurance coverage,cigna insurance alcohol rehab,geico car insurance rates by state,should my tenants have renters insurance,get insurance with suspended drivers license,robotic process automation insurance claims,cheap car insurance for girls,roadway auto insurance washington dc,health insurance reimbursement to employees,jeep car insurance,look auto insurance waterford mi,car insurance quotes online alabama,should i buy insurance before buying a car,car insurance front royal va,geico auto insurance app,car insurance fort mill sc,the cheapest auto insurance in ny,alabama georgia auto insurance,coventry vision insurance,employer paid health insurance,auto insurance rates,quick auto insurance quote no personal information,car insurance columbia mo,bubany insurance,full coverage vehicle insurance,auto insurance medford,car insurance hempstead ny,car insurance quotes philadelphia,ors insurance,castleberry insurance,do i have to have motorcycle insurance in florida,insurance coverage for rehab,wickersham insurance,insurance quotes newfoundland,auto insurance albany ny,insurance companies car insurance,snow plowing insurance,renaissance medical insurance,progressive insurance dash cam,affordable car insurance utah,geico car insurance naic number,cheap auto insurance companies in tampa florida,uct insurance columbus ohio,free online auto insurance quotes,disability insurance elimination period,multiple car insurance one driver,plant city auto insurance,expensive auto insurance,car insurance online,health insurance plans for business owners,al boenker insurance quote,montana car insurance,avirex insurance,auto insurance pay by check online,auto insurance 18 year old female,auto insurance quotes louisville ky,auto insurance ashland va,insurance q,electrical contractor insurance cost,usa insurance ocean springs,get insurance quotes,auto insurance memphis tn,how to sell more life insurance,watson insurance gastonia nc,austin car insurance rates,gym liability insurance rates,affordable car insurance washington state,lowest term life insurance,geico auto insurance amarillo tx,compare business insurance quotes online,insley insurance,california casualty auto insurance phone number,mc insurance,state insurance agency jacksonville beach florida,affordable car insurance with dui,bkc insurance cheboygan mi,auto insurance durham nc,auto insurance quotes phoenix az,pcc insurance,dewberry insurance eupora ms,get lower car insurance,h03 insurance,national auto insurance warsaw indiana,broker dealer errors and omissions insurance,car insurance idaho,get a free car insurance quote,renters insurance personal liability coverage,does home insurance cover termite damage,nevada auto insurance minimums,6 month premium car insurance,condo vs homeowners insurance,domo insurance,lawn care business insurance,get a quote for my car insurance,auto insurance quotes california,best way to get car insurance quotes reddit,auto insurance longmont,truss insurance,auto insurance for rebuilt titles,my miles car insurance,online homeowners insurance quote massachusetts,texas auto insurance,group medical insurance for small business, insurance company,american family mutual auto insurance,best auto insurance rates in oregon,cheap auto insurance ma,massachusetts automobile insurance,scott johnson insurance,small business llc health insurance,murphy auto insurance,goode insurance grandview,home insurance merritt island,hsbc auto insurance,multi vehicle insurance quotes,is boat insurance required in illinois,mn auto insurance companies,second to die life insurance quotes,best insurance after lapse in coverage,hr consultant insurance,do insurance rates go up after no fault accident,prudential retirement insurance and annuity company,auto insurance herndon va,auto insurance quotes ny state,cat insurance nj,cota insurance,auto insurance jackson tn,auto insurance miami,brown auto insurance,find lowest car insurance quote,what is an auto insurance quote,best auto insurance in atlanta,insurance companies hutchinson ks,need a quote for car insurance,lyft insurance claims,silveus insurance,auto insurance riverdale,lyft car insurance,auto insurance alabama,auto insurance naperville il,landscaping and snow removal insurance,sonnet auto insurance,usaa term life insurance rates,car insurance hobbs nm,1st time car insurance,gaspar insurance,to sell variable life insurance policies,arizona automobile insurance,best auto insurance in tennessee,cheapest auto insurance washington,how to get cheap car insurance after accident,payless auto insurance blythe ca,car insurance quotes spokane wa,can insurance quotes online,how to lower your geico car insurance,stanberry insurance,best car insurance for military,washington auto insurance,average motorcycle insurance las vegas,dwyer insurance cincinnati ohio,foremost boat insurance phone number,a affordable auto insurance leominster,car insurance covers what,auto insurance quotes for high risk drivers,car insurance cortland ny,bay harbour insurance,home insurance cover sewer line replacement,reckless driving insurance increase,car insurance quotes policybazaar,chepest car insurance,old republic insurance careers,insurance crimes which affect interstate commerce are prosecuted by the,oxford auto insurance broadview il,insurance,juvenile whole life insurance rates,liberty mutual insurance bbb,arizona automobile insurance company,gill insurance caruthers ca,maryland car insurance,compare car insurance between states,car insurance nh,business insurance nashville,da lu insurance,insurance companies saint john,best online car insurance,car insurance companies in ky,car insurance martinsville va,conseco life insurance class action lawsuit,get insurance quotes online,homeowners insurance recommendations,full coverage insurance on a motorcycle,how to find cheap insurance quotes,retired military auto insurance,sapphire edge insurance,best low rate auto insurance,affordable auto insurance companies,commercial vehicle insurance florida,insurance for bookkeeping business,what does bodily injury liability insurance cover,youi car insurance,cheap



Keywords: Insurance, Agriculture, Scheme, Prospect, Achievement, Nigeria.


Agriculture has been provider of nutrient for teeming population as well as the largest employer of labor strength inwards the Earth (Amaza, 2000). The Nigerian agriculture equally inwards most
developing countries of the world is anchored mainly on
  subsistence farming methods. In this regards little scale farming operators producing close 80% of the total nutrient production for the e'er increasing population, operate on fragmented farm of betwixt 0.5 – 2hectares (Salami, 1994). The federal business office of statistics (2006) recorded that nutrient production grew at a charge per unit of measurement of 3.5% alongside an annual population growth charge per unit of measurement of 2.83%.
In a desperate bid to solve the country’s nutrient as well as nutrition problems, diverse nutrient related policies, programmes as well as projects were set inwards place. In spite of diverse programmes as well as projects, the nutrient problems continued unabated as well as nutrient importation had to pace up. Aderinola et al (2007) gave the next reasons for the perpetual nutrient deficits:
•           Lack of dramatic breakthrough inwards agricultural research,
•           High risks as well as uncertainties often associated alongside agricultural production,
•           Unwillingness of the entrepreneurial cast to
devote organizational abilities to agricultural production,
•           Inefficient marketing as well as distributional system, •      Low status accorded farmers inwards the society, and
•           Rural-urban migration of the rural youth.
Furthermore, at that topographic point is the institutional constraint especially the weak linkage betwixt agricultural extension as well as enquiry services that receive got widened communication gap betwixt farmers as well as policy makers, as well as inadequate credit to agricultural sectors to finance modern farming engineering scientific discipline (Soniran, 1991).
Avery of import job faced yesteryear farmers as well as agricultural trace of piece of work organisation enterprises is that it is characterized yesteryear considerable gamble as well as uncertainties which stalk from its predominant dependence on nature. This is because agriculture requires extensive direct as well as continuous contact alongside the forces of nature. These risks are unforeseen as well as they are beyond the command of the farmers. Farmers appear upwardly considerable losses of investment as well as income due to the losses resulting from these gamble as well as uncertainties. Because of this, Ajakaiye (2001) stated that little farmers inwards many developing countries of the world including Nigeria are trapped inwards the barbarous bicycle of poverty. This bicycle is characterized yesteryear depression productivity as well as depression farm income which exit them alongside virtually no saving equally upper-case missive of the alphabet required inwards the transformation of their production technology.
However, alongside Agricultural Insurance, farmers tin travel saved from these losses or harm to crops as well as livestock or the outcome of which tin travel minimized. According to Ray (2001), crop insurance inwards developing countries can:
a.         cushion the stupor of disastrous crop losses inwards bad year,
b.         assist to ensure a considerable mensurate of safety inwards farm income over the years as well as this contribute to the stability of the agriculture as well as inwards plow the full general economy,
c.         ameliorate the seat of farmers inwards relation to
agricultural credit,
d.         strengthen the seat of the agricultural cooperative societies equally a outcome of the strengthening of the economical seat of the farmers, the credit establishment tin thus travel to a greater extent than liberal inwards providing the much needed credit to the farmers, accepting crop insurance contracts equally collateral,
 e.        laissez passer on the farmers greater confidence inwards adopting novel as well as improved farming practices as well as inwards making greater investment inwards agriculture for improving crop yields as well as increasing agricultural production, and
f.          assist to supplant sporadic as well as haphazard grant as well as relief operations which regime inwards developing countries are oftentimes called upon to undertake inwards emergencies yesteryear a pre-planned as well as actuarially calculated scheme of compensation awards nether which the parties concernedgovernment as well as farmers to a greater extent than often than non know inwards advance their respective liabilities as well as the farmers inwards item know the extent of protection available inwards example of unavoidable losses of their crops.
Ray (2001) concluded that no sustained as well as steady evolution of the developing countries is possible without or so cast of crop-agricultural insurance to underwrite risks of crop-agricultural failure.
Agricultural Insurance thence is a necessary component of the institutional infrastructure essential for the evolution of agriculture which is basically a high gamble enterprise. Based on the inwards a higher house roles of agricultural insurance equally panacea to alleviate or so of the job militating against agricultural insurance inwards Nigeria, the Nigerian agricultural insurance scheme (NAIS) was formed inwards 1987 yesteryear the federal government. The scheme has been inwards functioning since then.

Agricultural Insurance: Risk as well as Uncertainty

Agricultural insurance is defined inwards the Nigerian Agricultural Insurance scheme (NAIS) functioning guideline (1989) equally the stabilization of income, employment, prices as well as supplies of agricultural products yesteryear agency of regular as well as deliberate savings as well as accumulation of funds inwards little installment yesteryear many farmers inwards favorable fourth dimension periods, to defend or so or a few of the participants inwards bad fourth dimension periods.
Mabawonku (1998) defines insurance equally the elimination of the uncertain gamble of loss for the private through the combination of a large number of similarly exposed private who tin contribute to a mutual fund, premium payment sufficient to brand expert the loss caused yesteryear whatever 1 individual. These definitions are consistent alongside Hansel (1998) which defines insurance equally a social device providing fiscal compensation for the effects of misfortune, the payment existence made from the accumulated contributions of all parties peculiarly inwards the scheme.
Thus, it may travel seen equally a form of fund, into which all those insured volition pay an assessed contribution (called premium), inwards return, those insured volition receive got correct to telephone phone on the fund for whatever appropriate payment should the insured trial occur.
The needs for agricultural insurance arose because the  sector is exposed to varieties of gamble as well as uncertainties. Risk as well as uncertainties often used interchangeably, receive got dissimilar connotations. Mabawonku (1998) defines gamble equally variability’s inwards outcome which are measurable inwards an empirical or quantitative manner. Such outcome or situations are to a greater extent than often than non characterized yesteryear measurable probability. Mabawonku, however, viewed uncertainty equally province of affairs or outcomes alongside quantitative valuations measured alongside whatever flat of accuracy.
Farmers receive got dissimilar mental attitude towards risk. Some farmers are gamble a versed, or so are gamble neutral piece other are gamble preferrers:
Risk Aversion:- Is the style to avoid higher gamble equally much equally possible, non having a  expert disposition to taking a higher risks. Influenza A virus subtype H5N1 risks averter farmer may convey gamble solely if the higher gamble is accompanied yesteryear a to a greater extent than than proportionally higher expected profit.
Risk Preference:- Is the style to bask taking higher risks; to this conclusion maker, there  is a utility attached to the human activity of taking gamble which is distinct from the utility of expected reward. The gamble preferrer thence volition receive got a higher gamble for less than proportionate increment inwards the expected profit.
Risk Neutral:- Is the style non to bask or loathes taking higher risks. It agency that the gamble neutral an increment inwards gamble must travel accompanied yesteryear a proportionate increment inwards the expected profit.
 Colman as well as Young (1998) reported that farmers inwards developing countries are gamble a versed. This implies that he is willing to forgo or so income inwards monastic tell to avoid risk. It is imperative at this dot to add together that non all gamble is insurable. The atmospheric condition of agricultural gamble to travel insurable inwards Nigeria are equally given yesteryear Mabawonku (1998). He states that insurable risk:
•           Must travel of fortuitous character,
•           It should travel measurable inwards large number,
•           The cost of insurance or premium should travel inside the agency of the average farmer.
In trace alongside status for insurability of gamble given yesteryear Mabawonku, (1998), Adegeye as well as Akinwumi (1988) reported that the probability of occurrence of death, burn downwardly losses, accident are measurable as well as hence insurable solely because the number of observation is sufficiently large as well as is independently randomly distributed. Furthermore, gamble as well as uncertainty that resulted from natural peril outcome inwards losses of non solely on the plain but also, during storage, packaging as well as marketing of agricultural commodities. Pests, diseases as well as parasitic attacks receive got been found to travel the peril that occurs most oftentimes on the farm annually as well as they crusade a real high per centum of both plain as well as send service harvest losses of agricultural commodities.
Adegeye as well as Okunmodewa (1998) observed that most analyst telephone phone pilfering a social risk, but inwards their (Adegeye as well as Okunmodewa) view, the extent to which they deport on the
total yield of crops as well as livestock is at growing stage, substantial as well as non detected) larn inwards a major farm peril to reckon with.
Historical Background of Agricultural Insurance inwards Nigeria

Agricultural insurance equally an alternative for gamble management genuinely started equally crop hail insurance inwards Europe to a greater extent than than 100years agone as well as spread to the United State at the outset of the century. It has since been embraced yesteryear a lot of develop as well as developing countries of the World viz: USA, Canada, Japan, Mexico, Brazil, Bolivia, Coast Rica, Panama, Mauritius, India, Australia, I ran, Sri Lanka, Zambia, Philippine, Israel, Chile, Jamaica, Egypt, Cyprus, Sweden, People's Republic of Bangladesh as well as Venezuela – alongside varying degrees of successes as well as failures.
 In Nigeria, commercial agricultural insurance scheme was pioneered yesteryear Niger insurance inwards May, 1987. National Insurance Corporation of Nigeria (NICON) fully owned yesteryear the Federal Government as well as the National Cooperative Insurance Society of Nigeria (NCISN) were also known to receive got operated insurance schemes alongside agricultural implication on a express commercial scale. Similarly, or so banks such equally the United Bank for Africa (UBA) as well as Union Bank of Nigeria which were actively involved inwards giving credit facilities to the agricultural sector had to lift the amount assured of life assurance of loan applicants to qualify equally suitable collateral for providing loan.
Agricultural insurance scheme (NAIS), which was formerly launched on the 15th of December, 1987, was later on followed yesteryear the incorporation of the Nigeria Agricultural Insurance Company (NAIC) inwards 1988 to implement the scheme.

Objectives of Nigeria Agricultural Insurance Scheme

The broad objective of the Nigeria Agricultural Insurance Scheme (NAIS) is to offering protection to the farmer from the effects of natural disasters as well as to ensure payment of appropriate compensation sufficient to maintain the farmer inwards trace of piece of work organisation after suffering a loss.
The scheme is designed specifically to:
(a)        Promote farm production since it would heighten greater confidence inwards adopting novel as well as improved farm practices as well as inwards making greater investments inwards the agricultural sector of the Nigeria economy, thereby increasing the total production;
(b)        Provide fiscal back upwardly to farmers inwards the trial of losses arising from natural disasters;
(c)        Increase the current of agricultural credit from lending institutions to the farmers;
(d)       Minimize or eliminate the demand for emergency  assistance provided yesteryear Government during current of agricultural disasters.
Perils Under Cover
 The perils covered nether the crop sub-sector are fire, lightning, windstorm, flood, drought, pests as well as diseases. For livestock, the perils covered are expiry as well as injury due to accident, disease, fire, lightning, tempest as well as flood. Losses caused yesteryear negligence or yesteryear willful harm are non covered. Similarly, political risks as well as losses resulting from social risks, e.g. riot, mutiny, revolution, etc. are non covered.
The insured nether the scheme is required to encounter the atmospheric condition for expert crop as well as livestock husbandry equally set downwardly inwards the guidelines/policies provided yesteryear NAIC.
Risk Management  
 As stated before gamble is an inherent element of life as well as thence cannot travel eliminated. The powerfulness to deal as well as command a gamble is the best way to tackle the number of risk. According to official newsletter of Farm Management Association of Nigeria (FAMAN), 2000, fiscal success inwards farming is heavily subject upon the powerfulness of the farmers to trim down gamble as well as uncertainty or to ameliorate his gamble bearing ability. The powerfulness to command or trim down gamble is referred to equally gamble management. Sonka as well as Patrick (2000) define gamble management equally the alternative of alternative course.
Oyekole (2002) as well as Otegbolade (2002) laissez passer on the working Definition of gamble management equally the identification, evaluation as well as economical command of gamble that threaten the assets as well as earnings of a trace of piece of work organisation or other enterprises. The objective of gamble managements Oyekole (2002) as well as Otegbolade (2002) went farther to brand the most efficient pre-loss organisation for post-loss residual betwixt resources needed as well as resources available to preserve the effective functioning of the business.
The next methods tin travel used yesteryear farmers to grip agricultural risks. These are measures that tin guarantee them or so minimum income or wealth inwards the appear upwardly of either natural or manmade hazards, equally summarized yesteryear Wallace (1988), Otegbolade (2002), Irukwu (2001) as well as Osoka (2002). These include the following:
(i)         Risk avoidance,
(ii)        Risk assumption,
(iii)       Risk reduction,
(iv)       Risk transfer,
(v)        Risk sharing as well as (vi) Self insurance.
Before the commencement of functioning of Nigerian Agricultural Insurance Scheme (NAIS) inwards 1988, Nigerian farmers receive got been using or so gamble management
techniques to deal alongside agricultural risk. Mabawonku  (1998) states that Nigerian farmers receive got been coping alongside agricultural gamble before he establishments of NAIS through diversification , that is, the growing of to a greater extent than than 1 crop on a plot of land, each alongside dissimilar wet requirement as well as dissimilar gestation current as well as management requirements. Sorrenson (1984) had before agreed that diversification guaranteed farmers or so minimum income or wealth inwards the appear upwardly of either natural or manmade hazards.
Additionally, Dittoh (1988) study that gamble management techniques inwards tree crops production differ significantly from that of animate existence as well as crops because of inflexibility inwards the tree crop production. He states informal gamble management techniques inwards tree crop production before the commencement of NAIS are:
(i)         Conservation,
(ii)        Engage inwards non-farm income generating ventures,
(iii)       Mixed cropping as well as mixed farming,
(iv)       Hedging and
(v)        Agriculture cost back upwardly or guaranteed minimum pricing.

Prospect of Nigeria Agricultural Insurance Scheme

Agricultural sector is exposed to all normal trace of piece of work organisation risks as well as uncertainties equally good equally other natural calamities which are non solely unpredicted but autumn exterior the command of private farmer. This province of affairs leads to depression production inwards Agriculture. As a outcome of this, a serial of scheme were introduced to alleviate these problems. Mabogunje (2000) outline or so of these schemes, they include:
(i)         Plantation Agriculture Development Scheme betwixt 1950’s as well as 1960’s
(ii)        Farm village schemes, since the belatedly 1950’s (iii) Government owned nutrient companies or corporation inwards the 1970’s
(iv) The National accelerated nutrient production programme inwards the 1970’s (v) 0peration feed the Nation in1978
(vi)       World Bank Assisted Agricultural Development
Projects, 1974
(vii)      River Basin Development Authority (viii)     The Nigeria Green Revolution.
Other regime programmes include Directorate of
Food, Road as well as Rural Infrastructure (DFRI) as well as straight off Nigeria Agricultural Insurance Company alongside the master copy objective of protecting the farmers from devastating effects of natural disasters as well as to ensure payment of appropriate compensation sufficient to maintain the farmer inwards trace of piece of work organisation after suffering a loss as well as consequently ameliorate Agricultural production level. Adegeye as well as Akinwumi (1988) are of the thought that apart from protecting farmers against losses, an insurance scheme would heighten farmer’s powerfulness to obtain loan from fiscal institutions thereby increment their total production. Adeyemi (2000) confirms that crop insurance policy is a feasible tool for increasing crop production and  promoting exports thus promoting agricultural sectors equally whole. In the same vein, Ejemai (2002) highlight the benefits of agricultural insurance to include expanded agricultural output. This is possible because the policy holders are assured of a for sure income inwards a example of crop as well as livestock failure. This may include them to convey to a greater extent than gamble inwards an endeavor to increment production.
Jafiya as well as Toro (1998) province the NAIS is linked to Agricultural Credit Guarantee Fund Scheme (ACGFS) operated yesteryear the CBN, as well as to the agricultural loan scheme from the populace sources, The linkage makes it mandatory to farmers obtaining such loans to insure their farms nether the NAIS. The NAIS as well as ACGFS are issue or mutually reinforcing each other. The ACGFS guarantees depository fiscal establishment against loan defaulters as well as non farmers where equally nether the NAIC scheme; farmers are protected against losses resulting from natural hazards. NAIC does non laissez passer on banks guarantee of loan payment inwards the trial of defaults unrelated to natural peril which the ACGFS does.

Achievement of Nigeria Agricultural Insurance Scheme

With regards to achievements, the NAIC premium income for 1989–1993 was ₦50,121,115. This figure increased inwards 1994–1998 as well as 1995–1999 to ₦76,959,078 as well as ₦114,049,706 respectively (WAICA, 2000). The figure increased inwards 2000–2004 as well as 2005–2009. The claim for the twelvemonth 1989-1993, 1994-1998 as well as 1995-1999 were ₦2,410,000, ₦15,662,236 as well as ₦35,197,000 respectively. These stand upwardly for a loss ratio of 4.0 (WAICA Journal, 2001). From the figures given above, it tin travel seen that an endeavor has been made to salve farmers of the pains of losses suffered from natural disaster. On the whole Irukwu (2001) noted that the claim fifty-fifty experienced nether the scheme has been relatively expert after making allowance for or so fraudulent as well as grossly exaggerated claims.
As before indicated, the scheme was established to provide safety for all categories of farmers, namely: small, medium as well as large-scale holders, either inwards groups or equally individual. The insurance covert is compulsory for farmers that do goodness from whatever cast of agricultural credit scheme operated yesteryear approved lending institutions or agencies for the agricultural items covered nether the scheme alongside since 1st January, 1989. Most transaction was made yesteryear or through the lending institution. The scheme also provides covert for self financed farmers, Government sponsored or assisted projects, etc. inwards which institutional credit facilities may non travel involved. In this case, payments of premium as well as asking for whatever compensation were made direct to the companionship yesteryear the private farm or group.
Problems of Nigeria Agricultural Insurance Scheme 

The efficiency of agricultural insurance inwards reducing farmer’s losses has non been inwards dubiety but the constraints to its polish functioning receive got been envisaged yesteryear many authorities. Jafaya as well as Toro (1998) envisaged that the next job powerfulness hinder the polish functioning of the agricultural insurance scheme inwards Nigeria:
(i)         Inadequate infrastructure as well as administrative facilities
(ii)        Shortage of trained manpower
(iii)       Ignorance of farmers on the functions as well as merit of the scheme
(iv)       Non-availability as well as unreliability of information useful for insurance purpose and
(v)        Inadequate as well as untimely funding
These problems receive got been confirmed yesteryear Jafaya  (2002) to travel amidst the problems militating against the effective as well as efficient functioning of the Nigerian Agricultural Insurance Scheme (NAIS). It is necessary to brand a brief analysis of these problems;

 (i)       Inadequate Infrastructure as well as Support services

Inadequacy of infrastructural facilities such equally expert roads as well as other efficient agency of transportation, expert communication facilities, uninterrupted powerfulness supply, could hamper the successful functioning of the scheme. These facilities are needed inwards monastic tell to facilitate prompt as well as speedy intimation of losses yesteryear the farmers for assessment of losses as well as payment of indemnities.
(ii)       Inadequate funding

Adequate as well as timely funding of the scheme volition travel essential for its success. Agricultural insurance is a real costly venture as well as equally such, organisation for adequate funding should travel made. Delay inwards blessing as well as releasing funds as well as especially undue political interference inwards funding as well as management of the scheme volition deport on its success.

(iii)      Lack of Trained Personnel

The scheme requires the availability of personnel trained inwards agriculture as well as insurance at the national, province as well as local regime levels equally evaluator, supervisors, loss adjusters, salesmen as well as extension staff. The Earth is brusk of this cadre of personnel.

(iv)      Ignorance as well as Lack of Awareness of the Scheme yesteryear Farmers

The ignorance as well as lack of awareness yesteryear the bulk of farmers of the need, exercise as well as lack of awareness yesteryear the bulk of farmers of the need, exercise as well as values of agricultural insurance, constitute job to the scheme.

(v)       Lack of Data

Influenza A virus subtype H5N1 major job affecting the scheme is the dearth of information on farm operations, peculiarly on crop yields as well as losses arising from natural hazards. These information are necessary for the computation of premiums as well as indemnities.


Modern engineering scientific discipline as well as agricultural insurance are non mutually exclusive. Rather, they should travel seen equally both complementary as well as mutually reinforcing. This is because uncertainties inwards Agriculture transcends the production stage, to include special processes such equally harvesting, storage, good-in-transit, pilfering as well as marketing (prices) because of the perishability nature of agricultural products. Nigeria has made a decent start to tackling its agricultural albeit rural problems. The macroeconomic reforms that receive got been instituted receive got elicited or so small-scale provide response. There has been growth inwards the agricultural sector. The growth has touched virtually all the sub-sectors of agriculture which has Pb to an increment inwards hectarage cultivated. At the same vein at that topographic point is demand for regime agencies to address inwards fractural challenges which constrain productivity.
The scheme should travel made compulsory for farmers obtaining institutional credit for the next reasons:
(a)        Institution lenders would travel encouraged to lend to a greater extent than for farm production because of added safety of insurance for the loans;
(b)        Farmers volition travel encouraged to convey to a greater extent than credit for increased farm production when provided alongside insurance covert against natural hazards i.e. drought, floods pests, diseases etc;
(c)        Bank loan repayment volition ameliorate because of added supervision of farmers activities yesteryear the insurance Agency as well as other institutions participating inwards the functioning of the scheme;
(d)       Administration of the scheme volition travel made unproblematic because:

(i)         Services of existing fiscal establishment volition travel utilized;
(ii)        Premium volition travel built inwards as well as deducted straight from the loan for payment to the Agency yesteryear the financial
(iii)       Insurance contracts are made betwixt the insurance Agency as well as the lending institutions rather than direct alongside the farmers;
(iv)       Indemnities are paid to the farmers through the credit institutions and
(v)        Compulsion for insurance is easily enforced
However farmers non taking institutional credit tin avail themselves of the protection offered yesteryear the scheme. 

Sumber https://jafo4jesus.blogspot.com