This study aims to determine the factors influencing crop insurance adoption at the farm level. We have used primary data and a multistage simple random sampling method to collect the responses from 240 farm households in the two districts of Odisha. Using the binary logit regression, the result shows that the significant positive factors influencing the choice to adopt agricultural crop insurance are the farmer’s education, non-farm income, the cost of agriculture, the proportion of own land, experience with other insurance products and access to credit. Furthermore, a farmer with more dependent members in the family is less likely to adopt insurance. Additionally, we observed that adoption decisions vary among different age groups. The small sample size is the limitation of this study. So, further research could be conducted on the related subject in region-specific, crop-specific and different groups of farmers in the country based on their risk preferences. Our study suggests a need for targeted and inclusive policy mechanisms to support rural farmers. Increasing awareness, farm diversification and special provisions for rented farmers may help to improve crop insurance uptake. We conclude that the government should consider farmers’ needs and constraints in accessing crop insurance during climate risk.
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