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The main objective of the present study was to estimate the agricultural crop insurance demand function. The safety - first rule method was adopted to
estimate the attitudes toward risk for a sample of Saravi farmers. Agricultural crop insurance function was then estimated by using the Goodwin model.
Data for the current study were collected from 105 Saravi farmers who were
selected by a two
stage cluster sampling method in 1995-96. Results of the
study revealed that insurance subsidy, previous year production, membership in Iranian National Wheat Project, degree of risk aversion, rate of indemnity
payment to insurance premium and farmers' age and level of education have positive effects on demand for agricultural insurance. However. there were
negative relations between demand for insurance and variables of farm size and part time job opportunities.