Abstract
Agricultural insurance -the insurance against natural hazards in farming -is an important feature of agriculture in developed countries; its potential benefits are now being appreciated world-wide. The conditions under which agricultural insurance programmes can significantly contribute to agricultural development in tropical countries are discussed. A theory of the decision-making process of fanners is outlined; then based on this theory, the beneficial effects of agricultural insurance are inferred and discussed. The Paper deals with the important issue of the perception which tropical tanners must have of agricultural insurance before its beneficial effects can be realized, the experience of agricultural insurance schemes in the Commonwealth Caribbean being used to support these arguments. The desirable features of agricultural insurance programmes in developing countries are discussed.
