Abstract 

Ky survey analyzes ROLE e safety FARM IN management e rISK IN SECTOR The AGRICULTURE ALBANIA, being FOCUS IN identification e factor THAT AFFECTING IN REQUEST e farmers FOR safety and IN PREPAREDNESS e tire FOR of PAID FOR this instrument defender. Importance e sTUDY REGARDING me exposing e up of agriculture ALBANIA THEir risks climate, biological and of market, si and me level e low of DEvELOPMENT of market of safety FARM IN Albania. in this WITHIN, iNSUraNCeS FARM are treated si A instrument i CruCiAl i management of rISK, THAT CONTRIBUTES IN stabilize e of REVENUE, support e INVESTMENT and increasing e sustainability the FARM. 

STUDY SUPPORTED IN of INFORMATION primary of collected through survey of 452 farmers Albanian. for analyzing e factor THAT AFFECTING IN PREPAREDNESS FOR BE PROVIDED They are USING mODELS Binary Logit and Binary Probit, WHEREAS FOR ASSESSMENT e factor THAT AFFECTING IN PREPAREDNESS FOR of PAID FOR safety AGRICULTURE They are APPLY mODELS Ordered Logit and Ordered Probit. Results show se faith THEir companies of Security, LEVEL i profit, pOSSESSION i safety of others and access finance AFFECTING positively IN REQUEST FOR safety AGRICULTURE. also, faith THEir companies of Security and access finance INCREASING probability THAT the farmers of accept level more of higher of received of Security. discovery e sTUDY underPInnIng need FOR politika public THAT encourage development e market of safety FARM through SUBSIDY of primates, improving of EDUCATION finance and strengthening of fAITH THEir institutions of Security. 

Field: Finance, Insurance and management The risk IN Agriculture 

Words Keywords:  Insurance FARM, management risk, application FOR safety, READINESS FOR of PAID, farmers Albanian, Binary Logit, Ordered Logit. 

Abstract 

This study examines the role of agricultural insurance in risk management within the Albanian agricultural sector, with a particular focus on identifying the factors influencing farmers' demand for insurance and their willingness to pay for this protective instrument. The relevance of the study stems from the high exposure of Albanian agriculture to climatic, biological, and market risks, as well as the limited development of the agricultural insurance market in Albania. In this context, agricultural insurance is considered an important risk management instrument that contributes to income stabilization, investment support, and the enhancement of farm resilience. 

The study is based on primary data collected through a survey of 452 Albanian farmers. Binary Logit and Binary Probit models were employed to analyze the factors affecting farmers' willingness to insure, while Ordered Logit and Ordered Probit models were applied to assess the determinants of willingness to pay for agricultural insurance. The empirical results indicated that trust in insurance companies, income level, ownership of other insurance products, and financial access positively influence the demand for agricultural insurance. Furthermore, trust in insurance companies and financial access increase the probability that farmers are willing to accept higher insurance premium levels. The findings highlight the need for public policies aimed at promoting the development of the agricultural insurance market through premium subsidies, improved financial literacy, and strengthened trust in insurance institutions.

Field of study: Finance, Insurance and Agricultural Risk Management 

Keywords:   Agricultural insurance, risk management, insurance demand, willingness to pay, Albanian farmers, Binary Logit, Ordered Logit.