Abstract:
Ethiopian agriculture characterized by vagaries of nature and resulting instability of farmer’s income. To
overcome this problem, the concept of crop insurance has become a critical issue in the study area.
Therefore, the objective of the study was to determine the farmers’ willingness to pay for crop insurance
in Wogera Woreda, Central Gondar Zone. Hence, to achieve its objective the study used probability multi
stage random sampling technique. The analysis was based on primary data surveyed from households in
the study area; the study surveyed 242 households. The study employed binary logit model. The result
shows that six explanatory variables (income, education, awareness, farm size, wealth both rich and
medium and age of household head) have positive sign and statistically significant at standard level of
significance. Three explanatory variables (expenditure family size and marital status) have negative sign
and significant effect on farmer’s decision. Based on the finding, the study recommends that the
agriculture and rural development administration and the concerned body expected to create awareness
and provide incentive for the poor households to accept and implement the crop insurance scheme.
