A Thesis submitted in partial fulfillment of the requirements for the degree of Master of Agribusiness Management

Thesis (M. Am.) - Asian Institute of Technology, 2025

Weather index insurance offers a cost-effective alternative by using weather data instead of field assessments. While it helps address disaster-related losses, its impact is constrained by high costs, limited awareness, data challenges and socioeconomic barriers. This study gathered data from cassava farmers in Khon Buri and Dan Khun Thot districts of Nakhon Ratchasima, Thailand, through focus group discussions and surveys. Firstly objective, to assess their perceptions and attitudes toward weather index insurance, a Likert scale was used. The results indicate that farmers are aware of the risks posed by natural disasters and often take precautionary actions, such as changing crops. While they show a moderate understanding of agricultural insurance, climate change, and risk management, their knowledge of weather index insurance is limited. They express trust in insurance providers and hold generally positive views on government subsidies. However, they agree that unpredictable weather and fluctuating crop seasons impact their willingness to pay for weather index insurance. Secondly, to examine willingness to pay using contingent valuation method, the mean willingness to pay for weather index insurance premium was 45.90 Baht per rai per year. Thirdly, Interval Linear Regression analysis revealed several factors influencing cassava farmers{u2019} willingness to pay for weather index insurance. Positive factors include having non-farm income and risk perception, especially concerns about natural disasters and the availability of government subsidies. On the other hand, negative factors include being the household headship, land tenure, debt, reliance on agricultural reserves, decision-making roles, difficulty accessing weather station information, and uncertainty in weather patterns. These findings are consistent with previous research highlighting the influence of socioeconomic and risk-related factors on insurance uptake, while this study further demonstrates that farmers{u2019} perceptions, attitudes and willingness to pay alongside these socioeconomic factors significantly impact the decision to adopt weather index insurance, especially among cassava farmers. These findings highlight the importance of targeted education campaigns, enhanced weather data systems, integration with national strategies, agency collaboration and inclusive policy frameworks to support the long-term success of weather index insurance.