This study examines willingness to take agricultural insurance by cocoa farmers in
Nigeria. A three-stage sampling procedure was used to select 120 cocoa farm households
and structured questionnaire was used to elicit data from the respondents. The data were
analysed with descriptive statistics and probit regression model. Results showed that
77.5% of the farmers were aware of Agricultural Insurance but only 50% were willing to
take it. The average willingness-to-pay (WTP) for Agricultural Insurance by the
respondents was N11,087.5/ha ($69.85/ha). The significant variables influencing
willingness to take agricultural insurance by the farmers were age of household head,
educational level, access to extension service and farm income. The study therefore
recommends encouraging young well educated people to engage in cocoa farming,
overhauling agricultural extension services as well as provision of insurance services to
farmers at affordable rate.