Analysis of Factors Affecting Dairy Farms' Animal Life Insurance: a Case Study Van Province

Abstract

Given the unique characteristics of dairy cattle production, the producers are faced with many risks and uncertainties. These facts require efficient management for the survival of their farms. Agricultural insurance generally and animal insurance for dairy cattle farms specially is a significant tool to alleviate the losses and thus, contribute to the survival of the dairy farms. This study aims to determine the factors effective on the animal life insurance of the dairy cattle farms in Van Province. Face-to-face interviews with 178 producers through questionnaires were conducted and the data obtained was used for descriptive statistics, cross tables and binomial logit model. The logit model showed that having animal life insurance had positive effects on the annual milk production, keeping records in the farms, using agricultural credits, being a member of the Cattle Breeders' Association, and the number of support benefits while it had negative effects on the having tractor, cleaning the udder before milking, and having artificial insemination. We suggest that an increase in the participation of the animal life insurance could contribute to the sustainability and thus survival of dairy cattle farms in terms of increasing milk production and income of the producers in the province.