Estimation of Cattle Insurance Demand in Turkey through Count Data Method: The Case of TRA1 Region

Agriculture sector faces natural, social and economic risks resulting from its production structure. One of the strategies to be used to transfer such risks is agricultural insurance. It was aimed in the present study to estimate the demand of farmers for cattle insurance (CI) and determine the effective factors which can increase the share of premium production of CI in total premium production of agricultural insurance in TRA1 Region. Data were obtained from 122 farms determined using proportional sampling method in the provinces of Erzurum, Erzincan and Bayburt (TRA1 Region) through a questionnaire survey. Count Data Model was used in convenience with the aim of the study. According to the results obtained, when premium cost of CI increased 3 folds, then the number of animals desired to be insured decreased by nearly 1-fold. In addition, when the budget allocated for agricultural production and the probability of animal disease both increased by 1%, the number of animals desired to be insured increased by 1.56% and 0.61%, respectively.