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Abstract

The present study was undertaken to analyze the effects of agricultural crop insurance on productivity and risk attitude of farmers in Kavar district, Fars province. Data, were collected by two stage cluster sampling from both insured and non-insured groups in 1996. Stochastic production functions for both groups as well as the Pratt-Arrow coefficients then were estimated for all sample farmers. Analysis of results revealed that technical efficiency of insured group, on average, is higher compared with non-insured group. The mean levels of technical effciencies were 73.80% and 65.09% for insured and non-insured groups, respectively. The results also indicated that, although coefficient of risk aversion, on average, was lower for the insured group, however, it was not significant.

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