This study uses primary data collected from 160 farmers

This study aims to investigate the factors that positively
and negatively influence the farmer’s willingness to participate in crop
insurance and how much change in crop production due to have crop insurance. This
study uses primary data collected from 160 farmers of Chitolmari upazila in
Bagerhat districts. Probit model use to find out the major factors which
influence the willingness to participate in crop insurance. Besides
quantitative analysis is performed through estimating Translog Production
Function to evaluate the output, elasticity and marginal productivity of inputs
in of crop production. Qualitative analysis is conducted by the help of
Principal Component Analysis and find out the farmer’s perception on crop
insurance schemes. This study finds that, if farmers have knowledge about crop
insurance schemes then there is a possibility to participate in crop insurance
and education level of the farmers also significant to participate in crop
insurance schemes. Education may create awareness about crop insurance’s
benefits. On the other hand most of the farmers think that high temperature and
heavy rainfall are main weather associated risk which creates huge loss in crop
production. Farmers in this study area also think that crop insurance provides
a good protection in their farming and their positive perception is to invest
in higher return in crop production. This paper also shows that the output
elasticity of seed is highest in relation to labor. Besides over use of
pesticide must decrease the production. Farmers who have insurance schemes but
not increase invest, they only carry the extra cost for insurance premium. In
another context, if farmers increase investment in factor of production except
pesticide, they get more output than before or insurance may encourage the
farmers to reinvest in crop production purpose even any damage occurs in last
year.