Non-Cognitive Skills and Willingness to Participate in Drought Index Crop Insurance

Crop insurance is a key tool for managing agricultural risk, but participation rates remain low in Ghana. Beyond financial and structural barriers, non-cognitive skills such as risk perception, confidence, and trust influence willingness to participate. This study examines how non-cognitive skills shape farmer decisions to adopt drought index crop insurance. The broader challenge is that insurance adoption requires both financial capacity and psychological readiness. Farmers with strong non-cognitive skills may be more willing to experiment with insurance, while others remain skeptical. This research situates non-cognitive skills within the broader discourse on risk management and agricultural finance.

Farmer survey data was collected to capture non-cognitive skills and insurance participation. Econometric models were applied to measure the relationship between skills and willingness to participate, controlling for income and demographics. Qualitative interviews provided insights into farmer perceptions of insurance and risk. Comparative analysis was conducted to assess differences between farmers with strong versus weak non-cognitive skills. This dual approach ensured findings were both statistically rigorous and contextually grounded.