Livestock Entrepreneurs’ Willingness to Pay (WTP) for Livestock Insurance: The Role of Capital and Financial Burden of Lumpy Skin Disease

Abstract

In Punjab, Pakistan, livestock business owners are at high risk of losing their primary source of income due to the continually emerging lumpy skin disease. The sustainability of such financial risks can be managed through insurance; thus, this study explores the willingness of the 454 livestock entrepreneurs to pay for livestock insurance. Using an independent samples t-test, the study confirms that willingness to pay has a positive relationship with the size of owned farmland, total herd size, and annual income from crops, which are statistically significant at 1%. However, conventional attributes such as age, education, and off-farm income have no significant effect on willingness to pay at a 10% significance level. From the results of this study, insurance policies should be designed to facilitate the participation of entrepreneurs with larger farms and herds and higher crop income in livestock insurance programs.: This could positively affect the finances and the region's future of livestock business people.