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Abstract Agricultural insurance has been implemented in many countries around the world to reduce risks for farming households. In Vietnam, agriculture is the most important industry but is heavily affected by natural disasters and climate change. This study aimed at assessing farmers’ awareness of climate change and analyzing factors affecting agricultural insurance participation of farmers in the Mekong Delta, Vietnam. The research applied utility theory to build empirical model. We collected primary data from a survey of 400 farming households in Tra Vinh province. Households were selected stratifiedly in 4 coastal districts and then drawn randomly from household lists of communes. The research results showed that the majority of people were aware of climate change trends locally and its impacts on agricultural production. Logit regression model indicated that there were 8 main factors affecting household’s participation in crop insurance including age, gender, farming experience, education level, access to insurance information, civic organization membership, fund borrowing and household size, of which access to insurance information had strongest impact. The study proposed some specific management implications including (i) raising farmer awareness about agricultural insurance through official information channels such as television, radio, as well as informal information through social networks; (ii) strengthen the role of local civic organizations, especially extension services in disseminating information and supporting insurance purchasing activities for farmer households and; (iii) support farmers in part with insurance fees or allow access to small credit from State programs to enhance the participation of agricultural insurance.
Lan et al. (Tue,) studied this question.