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ORIGINAL RESEARCH article
Front. Anim. Sci.
Sec. Animal Welfare and Policy
Volume 6 - 2025 | doi: 10.3389/fanim.2025.1468935
Risk Management in Broiler Farming: Optimizing Poultry Insurance Coverage Using a Spatial Panel Data Analysis
Provisionally accepted- 1Science and Research Branch, Islamic Azad University, Tehran, Iran
- 2Department of Agricultural Economics, Faculty of Agriculture, Ferdowsi University of Mashhad, Mashhad, Iran
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Broiler producers face various risks, leading to productivity and financial fluctuations worldwide. Agricultural insurance is an important risk management tool to stabilize income. Employing optimal insurance methods is crucial for effective production risk management. In this study, we used the panel method and spatial regression model to assess the impact of explanatory variables on the demand for poultry insurance. The explanatory variables included risk factors, the number of birds, loss cases, insurance premiums, and insurers' commitment to each insured chicken. The data for this study were sourced from the Agricultural Insurance Fund from 2010 to 2020 in Iran. The results indicate that an increase in mortality rates, loss cases, and risk factors positively and significantly influences the volume of insured chickens.Furthermore, increasing the insurer's commitment to each chicken positively and substantially affects poultry insurance demand. Specifically, a 1% increase in the insurer's commitment for each chicken in a province corresponds to a 1.1% rise in the number of insured chickens. An examination of the overall long-term effects reveals that a 1% increase in the risk factor, the number of loss cases, and the insurer's commitment for each chicken in a province, leads to an average rise of 0.14%, 0.35%, and 1.2%, respectively, in the number of insured chickens within the same province. These findings highlight the importance of risk management strategies, such as agricultural insurance, in stabilizing the income of broiler producers. Policymakers and industry stakeholders should focus on strengthening the insurance system and increasing insurers' commitment to promoting the uptake of poultry insurance among producers.
Keywords: Agricultural insurance, broiler, profitability, Optimizing, panel data analyses
Received: 22 Jul 2024; Accepted: 17 Apr 2025.
Copyright: © 2025 Hasan-nejad, Mohammadi-nejad, Ghorbani and Zeraarkish. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Amir Mohammadi-nejad, Science and Research Branch, Islamic Azad University, Tehran, Iran
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