Animal Insurance and Farmer’s Behavior in Vietnam
Journal Title: Asian Journal of Agricultural Extension, Economics & Sociology - Year 2017, Vol 16, Issue 2
Abstract
Most poor people in developing countries make their living from agriculture; hence, their livelihood is subject to various risks such as livestock disease, flooding, drought, and fluctuations in the price of agricultural products. One method of dealing with risk is insurance. However insurance markets in developing countries are seriously impacted by adverse selection and moral hazard, derived from information asymmetry. Livestock insurance was introduced in Vietnam as a pilot project in 2011–2013. We examine the factors behind the decision to take out insurance, from the viewpoint of moral hazard or adverse selection in Vietnam. The results suggest that, if there are few trustworthy people locally, the rate of time discounting is lower and farmers will purchase insurance coverage. Further, the higher the number of calvings, and therefore the older the cows owned by a farmer, the more likely he/she is to take out livestock insurance. The analysis of results also reveals a low level of existence of adverse selection and moral hazard with respect to livestock insurance in the surveyed areas. The incidence of livestock diseases covered by insurance is currently low. Many dairy farmers expressed their wish for insurance coverage to be expanded to include other diseases such as mastitis and hoof disease. Expanding the range of diseases covered by insurance would introduce an additional financial burden. As a consequence, the system of surveillance and penalties would need to be strengthened.
Authors and Affiliations
Hiroichi Kono, Satoko Kubota, Yasushi Sembokuya, Kohei Makita, Takehiro Nishida, Nguyen Thi Minh Hien, Tran Manh Hai
Keywords
Related Articles
- EP ID EP322985
- DOI 10.9734/AJAEES/2017/31910
- Views 117
- Downloads 0
An Economic Analysis of Aquariculture in Thoothukudi District, Tamilnadu
For the success of India’s economic reforms, foreign trade has a pivotal role to play in the economic growth. Aquariculture, also referred to as ornamental fish culture is a promising alternative for employment and incom...
Palm Kernel Processing for Income and Employment in the Kwaebibirem District, Ghana
Increasing demand for fats and oil for industrial production has resulted in net import of palm oil. To resolve this problem, various interventions have been implemented to boost palm oil production in the small scale se...
Profitability and Factors Affecting Milk Supply: An Empirical Study on Dairy Farms in Chittagong District of Bangladesh
It was an attempt to examine the profitability and factors affecting milk supply of dairy farms in selected areas in Chittagong District. Primary data were collected from both milk producers and traders during the months...
Comparative Economics of Traditional viz High Density Mango Cultivation in Karnataka
This study has examined (i) the growth in area, production and productivity of mango (ii) assess cost and return structure of Mango Cultivation, (iii) the financial feasibility of mango cultivation under traditional viz...
A Study on the Evaluation of Physical Facilities (Infrastructures) and Processing Operational Units of Major Slaughterhouses and Meat Retail Shops in Jammu Districts of Jammu and Kashmir
The present study was conducted in Jammu district of Jammu and Kashmir State to study the evaluation of physical facilities (infrastructures) and processing operational units of major slaughterhouses and meat retail shop...