THE ROLES OF AGRICULTURAL INSURANCE IN ENHANCING AGRICULTURAL
ABSTRACT
This study examined the roles of agricultural Insurance in enhancing agricultural productivity. The following  problems necessitate this research work which and lack of financial support from the insurance and the Government, inadequate flow of agricultural credits to the Nigerian farmers. The major objectives was to  evaluate the level of the financial support coming from the insurance companies and the government. To find out the rate of low of agricultural credit to the Nigerian farmers by the NAIC. The data comprises of both primary and secondary data were collected, presented and analyzed. The researcher was able to find out that the Nigerian farmers do not embrace the agricultural insurance scheme in their  farming business, the service of the insurance companies is no  long effective and efficient. The following conclusion was made that the economic measures instructed by the government in the country as regards to the risk surrounding agricultural should be fully implemented. And more attention should be paid to the agricultural sector, by grating loans and subsides to the farmers. These research recommended that competent, experienced and professionally qualified personnel should be engaged in the agricultural insurance scheme, in order to make their services more effective and efficient to the farmers. More awareness should be created in the  rural areas not only in the urban area of the country.
TABLE OF CONTENT
CHAPTER ONE
Introduction
1.1 Background of the study    -    -    -    -    -    -    
1.2 Statement of problems    -    -    -    -    -    -    
1.3 Objectives of the study    -    -    -    -    -    -    
1.4 Research questions    -    -    -    -    -    -    -    
1.5 Research hypotheses     -    -    -    -    -    -    
1.6 Significance of the study    -    -    -    -    -    -    
1.7 Scope and limitation of the study    -    -    -    -    -    
1.8 Definition of terms    -    -    -    -    -    -    -    -
    Reference    -    -    -    -    -    -    -    -    -
CHAPTER TWO
Literature review    -    -    -    -    -    -    -    -    -
2.1 An overview     -    -    -    -    -    -    -    -    -
2.3 Historical development of agricultural insurance in Nigeria    
2.3.1 Crop insurance     -    -    -    -    -    -    -    -    
2.3.2 Crop insurance policy    -    -    -    -    -    -    -    
2.3.3 Livestock insurance policy    -    -    -    -    -    -    
2.4 The rationale for agricultural insurance in Nigeria    -    -    
2.5 Agricultural insurance for climate change adaptation    -    -
2.6 Risk associated with Agriculture     -    -    -    -    -    
2.7 The cover under Nigerian agricultural insurance     -    -    
2.8 Risk management in agriculture    -    -    -    -    -    
2.9 The roles of agricultural insurance in enhancing the agricultural
Productivity     -    -    -    -    -    -    -    -    -    
2.10 Problems faced by the agricultural insurance in Nigeria    -    -
2.11 Prospects to the problems of agricultural insurance in Nigeria     -    
2.12 The benefits of the agricultural insurance in Nigeria     -    -    -    
    Reference     -    -    -    -    -    -    -    -    -    -
CHAPTER THREE
Research design and methodology
3.1 Research design    -    -    -    -    -    -    -    -    
3.2 Area of study    -    -    -    -    -    -    -    -    -    
3.3 Sources of date     -    -    -    -    -    -    -    -    
3.3.1 Primary data    -    -    -    -    -    -    -    -    
3.3.2 Secondary data    -    -    -    -    -    -    -    -
3.4 Population of the study    -    -    -    --    -    -    -    
3.5 Sample size and sample techniques    -    -    -    -    -    
3.6 Instrument used    -    -    -    -    -    -    -    -
3.7 Method of data analysis     -    -    -    -    -    -    -    
3.8 Reliability of the study    -    -    -    -    -    -    -
3.9 validity of the study    -    -    -    -    -    -    -    
    Reference     -    -    -    -    -    -    -    -    -
CHAPTER FOUR
Data presentation and analysis
4.1 Data presentations    -    -    -    -    -    -    -    
4.2 Testing of the hypothesis     -    -    -    -    -    -
CHAPTER FIVE
Summary of findings, Recommendations and conclusion     
5.1 Summary of findings    -    -    -    -    -    -    -    
5.2 Recommendations    -    -    -    -    -    -    
5.3 Conclusions    -    -    -    -    -    -    -    
 5.4 Suggestions for further studies    -    -    -    -    
    Bibliography     -    -    -    -    -    -    
    Appendix    -    -    -    -    -    -    -    
Questionnaires    -    -    -    -    -    -    
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND OF THE STUDY
    Agricultural insurance as an alterative for risk management started as crop insurance in Europe more than one hundred years ago and then spread to the united state of America at the beginning of the 20th century. It has since then been embraced by a lot of the world like Ganada, Mauritius, Zimbabure, Philippines, Iran, Zambia and Nigeria with varying degrees of success and failures in agriculture production.
    In Nigeria there has been growing need since, 1976 to evolve a worthwhile and more permanent natural approach to risk management in agricultural and this has continued to attract the attention of the  various government. To this effect, the Nigeria. Agricultural insurance corporation was established by the federal government of Nigeria and funded largely by her with the participation of state government and the organized private sector. Nigeria agricultural insurance corporation stated as a company but became a corporation in 1993 by the virtue of decree 37 of 1993.
    The introduction nd formal including of the Nigeria agricultural insurance scheme by the president and commander in chief of the Armed forces of Nigerian, president Ibrahim Badamosi Babangida on the 15th December, 1987 was designed to benefit the small, medium and large scale farmer from the effect of natural hazards in consideration of a determined  price called premium.
    More so, NAIS is to ensure the payment of appropriate compensation sufficient to keep the farmer in business after incurring any loss on their insured farms.
    Agriculture remains an important economic sector in many developing countries. It is a source of growth and a potential  source of investment opportunities for the private sector. Two-thirds of the worlds  Agricultural  value added is estimated to be created in developing countries (World Bank 2008).
    Agriculture is the art and service of crop and invest rick production. In  its broadcast sense agricultural comprises the entire range of technology or technologies associated with the production o f useful products from plants and animals, including soil cultivation, crop and  livestock  management, and the activities of processing and marketing. Agricultural sector in Nigeria suffered  neglect during the holydays  of the oil boom in the 1990s. ever since the Nigeria has been witnessing extreme poverty and insufficient of basis food items.
    The agricultural sector was faced with numerous challenges and this motivated the federal government to introduce the agricultural insurance which is designed to provide  covers for financial / losses incurred due to reduction in expected outputs from agriculture products. The major products are crops and livestock other includes fisheries and forestry. For effective enforcement and implementation of agricultural insurance in Nigeria, by the government in 1933 brought into law the establishment of Nigerian agricultural insurance corporation (NAIC) through decrees No 37, with the main objective of “To implement, manage and administer the agricultural insurance scheme, to subsidize the premium chargeable etc.
    The NAIC since inception have been working towards achieving the objectives which it has set up for so, this research work is designed to appraise the  roles of agricultural insurance in enhancing the agricultural productivity, taking the activities of NAIC between 2000-2015 as a care study.              
1.2 STATEMENT  OF PROBLEM
    Developing countries like Nigeria are most exposed to and affected by natural hazards. They have limited  or no access to  insurance and financial services and in most cases have to manage weather risks by their  Own means (Syroka and Wilcox, 2006, Pelling, 2007). This is often seen area primary cause for what has been called the “poverty traps. Then when disaster strikes they often lose their productive assets and  are therefore cast into a spiral of destitution, from which it is had to escape. In the course of this research work, some of the problems are these.
i.    Low penetration of manger in farming populace the agricultural insurance scheme.
ii.      Lack of financial support to farmers in the event of issues .
iii.    Inadequate flow of agricultural credit to the Nigerian farmers by  the NALS.
iv.    Non- utilization of modern management techniques in crop and livestock businesses.
1.3 OBJECTIVE OF THE STUDY
    The objectives of the study includes the following: Nigeria farming populace towards the agricultural insurance scheme.
1.    To evaluate the level of penetration of the Nigerian farming populace towards the agricultural insurance scheme.
2.    To examine the rate of financial support given by the NAIS to the farmers.
3.    To assess the flow of agricultural credit to the farmers by the NAIS.

1.4 RESEARCH QUESTIONS
The following questions where formulated based on the stated objectives and problems
1.    Are the Nigeria n farmers patronizing the Agricultural insurance policies?
2.    Does the agricultural insurance provide financial support to farmers in the event of loss?
3.    Does agricultural insurance increase adequacy of agricultural credit from lending institution to the farmers?
1.5 RESEARCH HYPOTEHSIS
    The following hypotheses where formulated based on the research questions and objectives
Hypothesis 1
Ho: There are low penalization of farming populace towards the agricultural insurance scheme
Hypothesis 2
    Ho: Agricultural insurance provide financial support to farmers in the     event of losses
Hi: Agricultural insurance does not provide financial support to farmers in     the event of losses
 Hypothesis  3
Ho: Agricultural insurance increase the flow of agricultural credit from     lending institution to the farmers
Hi: Agricultural insurance does not increase the flow of agricultural credit     from lending institution to the farmers.
1.6 SIGNIFIANCE OF THE STUDY
    The significance of this research work is widely based /dependent on the set objectives. The research work is also designed to be benefit to the following set of people.
STUDENTS:
    This research work will services as a reference paint data base for any student carrying out further research study on the related topic in future.
THE INSURANCE COMPANY
    The study will also be useful to the insurance industry in the sense that it would help them to improve in their roles and service rendered to farmers through the Nigerian agricultural insurance scheme.
 COUNTRY AT LARGE
    The study will also service as a service  of revenue to the Nigeria economy the work is of great significance to the Nigerian farmers in that it will help them to know adequately on the best way to insure their agricultural products and  also access loans from the lending institutions.
    The research work will also be of benefit to the Nigerian government and the Nigerian agricultural insurance corporation which are directly involved in the implementation of the scheme as they  service better ways of improving their performance.
1.7 SCOPE  AND LIMITATIONS OF THE STUDY
    Nigerian agricultural insurance corporation is the only corporation  underwriting all agricultural insurance policies in Nigeria with a network of branches made the study unique. The  scope of the study extend from the head office of NAIC in Abuja I.G.I, ALlco and the Nigerian farmers.
    The researcher encounters various challenges in the course of carrying out this research work. These challenges ranges from death of information, paucity of fund, time limitation to the indifference of respondents.
-    There was the death of facts I figures on the activities of agricultural insurance in Nigerian, the existing journals, textbooks only covered the operational procedure of NAIC since its creation.
-    The researcher as a student is limited by the accessibility of fund. The financial research available for this research work is not adequate
-    Time factor.
The time allocated to this research work is not enough, this is due to the fact that the researcher have to combine the research work with other school activities which is also necessary requirement for the award of higher national diploma in insurance  
-    Illiteracy:
The majority of the farmer which are also the respondents are illiterate as they find it so difficult to reveal and release vital document and information which is their trust.
-      Finally, the absence of facilities (ITC) in the operations of the Nigerian agricultural insurance corporation  hindered the availability of some required information or date while in certain cases
1.8 DEFINITION OF TERMS
    The following terms used in this study should be taken to mean the following.
-    Agricultural insurance;
This could be seen as a scheme, policy designed to handle agricultural associated risks. It is also be an insurance cover given to farmers or stakeholders in the agricultural sector.
-      Agent;
The intermediary who handles the sales of insurance  policies between the insurer and the insured on  commission basis.
-    Broker;
The intermediary who act as a middle man between the insurance and the insured, but he is an agent of the insured.
-    Insurer;
The insurance company that accept to underwrite the risk of the farmers.
-    Insured;
The are taking the insurance policy, (The farmer)
-    NAIC Nigerian agricultural insurance corporations
-    NAICs Nigeria agricultural insurance scheme
-    NACBL; Nigerian agricultural and cooperative bank limited
-    Premium
The money consideration which moves from the insured to the insurer.
-    Reflection;
A policy aimed at expending the level of output of the economy by government stimulus, either fiscal or monetary policy.
-    Renewal notice;
An invitation from the insurer to continue an insurance policy that is  about to expire by paying the renewal premium.
-    Services;
Any activities or benefit that one  party can offer to another that is intangible and does  not result in the transfer of ownership of any physical object
-    Underwriting
The process of accessing risk and fixing the amount to be paid as premium.
  -    Underwriter
A person who examine a risk decides whether or no it can be insured and if it can be on what premium to be charged usefully on the basis of the frequency of past claims for similar  risks.
REFERENCES
Adewoye, T. (1996) Revitalizing the Nations Agricultural sector, business     time P.10.
Anyaoke,  O. (1992) “Needs for a strong Agricultural based economy, daily     star P2.
Bamano, G. (1992), “On the collapse of Agriculture and its revival”     Business times P.12.
Igben M.S (1981) “Agricultural credit and finance in Nigeria, problems and     prospects proceeding of a seminar organized by CBN.
Ibedu, E N (1992) “The Farmers shield an in-house Journal of the Nigeria     Agricultural  insurance corporations P.2.
NAIC, (1989) Operational guide line, hand book, P.12.
Oyatoye, E (1981) “Agricultural credit and finance in Nigeria problems and     prospects proceeding of a seminar organized by CBN.
  Umebali, E.E (2010) ‘Agribusiness and financial Analysis P.154-164.
www. Nais ng Org
www. Naicom.ng.com.