FACTORS INFLUENCING THE INTENTION TO PARTICIPATE IN AGRICULTURAL INSURANCE AMONG RICE-PRODUCING HOUSEHOLDS

This research aims to explore the factors affecting the intention of the rice-farming households participating in agricultural insurance (AI) in Vietnam in the future. The data for analysis was collected from 450 rice-farming households in three provinces: Hung Yen (including former Thai Binh province), Nghe An and Dong Thap. Based on Theory of Planed Behavior, Exploratory Factor Analysis, and linear regression model, the research indicated 4 factors that positively affected the participation in agricultural insurance of the rice-producing households in the future, which are: Attitude toward AI, risk perception, agricultural insurance suppliers, and government supportive policy. By contrast, the factor “subjective norms” were found to negatively influence this intention. Policy recommendations to promote rice-producing households’ participation in have been drawn from the analysis are: (i) Strengthening communication programs for awareness-raising to improve households’ positive attitudes toward AI and enhance their understanding of agricultural risks and risk management mechanisms; (ii) Developing appropriate AI policies and diversified AI products tailored to farmers’ needs and different areas; (iii) Expanding training and capacity-building programs to help rice households have better understanding, proactively access, and effectively utilize AI as a risk management tool. This research aims to explore the factors affecting the intention of the rice-farming households participating in agricultural insurance (AI) in Vietnam in the future. The data for analysis was collected from 450 rice-farming households in three provinces: Hung Yen (including former Thai Binh province), Nghe An and Dong Thap. Based on Theory of Planed Behavior, Exploratory Factor Analysis, and linear regression model, the research indicated 4 factors that positively affected the participation in agricultural insurance of the rice-producing households in the future, which are: Attitude toward AI, risk perception, agricultural insurance suppliers, and government supportive policy. By contrast, the factor “subjective norms” were found to negatively influence this intention. Policy recommendations to promote rice-producing households’ participation in have been drawn from the analysis are: (i) Strengthening communication programs for awareness-raising to improve households’ positive attitudes toward AI and enhance their understanding of agricultural risks and risk management mechanisms; (ii) Developing appropriate AI policies and diversified AI products tailored to farmers’ needs and different areas; (iii) Expanding training and capacity-building programs to help rice households have better understanding, proactively access, and effectively utilize AI as a risk management tool.