Agricultural insurance is indispensable for the prosperity of farmers and policy instruments to deal with the perils present in agriculture. But the implementation of agriculture insurance largely depends on the farmers’ attitude. This study assesses and tests the attitude of respondents toward agriculture insurance, and favorable factors and problems prevailing in implementing agriculture insurance. Sixty farmers were interviewed between April 2008 and August 2008. The farmers were selected by adopting convenient random sampling method. The collected data were analyzed with the help of percentage analysis and sign test. The study reveals that the farmers have good attitude toward agriculture insurance. Besides, they accept that certain favorable factors and stumbling blocks are prevalent in implementing agriculture insurance in Ambasamudram area. On the basis of the findings, the study suggests certain mechanism to boost up the share of agricultural income of Ambasamudram area at all levels.

Agricultural development is an index of our country’s progress because it is the largest sector and the lifeline of Indian economy. The development of all other sectors depends upon the development of agricultural sector because it provides food, raw material and employment opportunity to two-thirds of the population. But agriculture in India has always been a risky business in comparison to the industrial sector. As a result, the Indian farmer is not able to make the maximum use of his time, labor and productive capacity of his land due to risks, such as inconsistent monsoon, low level of productivity, technological backwardness and inadequate financial facilities. The most important problem that requires immediate attention is the perils present in the agriculture field. The agriculturist cannot carry on his business without facing the perils in the agricultural activity. Especially, they cannot bear all the losses that arise due to the perils involved in agricultural activity. The loss may be heavy or of recurring nature. Hence farmers should depend upon bank or other insurance corporation to share their loss. In this phenomenon, availability of agriculture insurance at reasonable terms might be the right strategy for speedy agricultural development and improvement of the standard of farmers.

The subject of crop insurance was discussed in the Indian Parliament as early as 1950, and the government assured that a viable agriculture insurance scheme would be introduced. Accordingly, the government appointed various committees to suggest a viable agriculture insurance scheme. The schemes suggested by such committees were not acceptable to the state governments due to huge financial implications, and no insurance company was willing to implement any such scheme because of expected heavy losses and problems. General Insurance Corporation of India (GIC) made a beginning in agriculture insurance scheme in 1972 by implementing an experimental crop insurance scheme for cotton crop on individual approach. Later, the scheme was extended to a variety of crops through different crop insurance schemes. Single agency and single scheme cannot satisfy all the needs of the agricultural sector. So a number of formal financial agencies have been working to meet the credit requirements of the farming community. Presently, agricultural insurance companies comprise three main streams: commercial banks, cooperative banks and regional rural banks. These institutions guarantee financial compensation to the insured in the event of any adversity and carve up the losses partially or fully. But the success of the implementation of such agriculture insurance is largely dependent on the attitude of farmers. Hence, the attitude of farmers toward agriculture insurance schemes is analyzed in this paper.

Agricultural Economics Journal, Rubber Production, Nontraditional Areas, Capital Investment, Government Agencies, Community Processing Centers, Rubber Plantation, Government Forest Lands, Goalpara District, Economic Empowerment.