Investigation of the Potential Market and Estimation of WTP for Insurance of Pistachio Tree Trunk (Case Study Rafsanjan-Iran)

Abstract

Capacity of garden productions in Iran is such that is accounted as a country that produces thirteen garden products in the world but despite excellent condition in Iran for producing garden products, natural disasters damage production of fruits in the country therefore farmers incur a loss. Pistachio tree has been in danger of destruction and dryness. Thus, in order to reduce loss incurred on trees, it is necessary to insure the tree. This study is aimed to investigate factors affecting willingness towards insurance of pistachio tree and to estimate willingness to pay premium for pistachio tree in Rafsanjan located in Kerman province. For this purpose, methods of contingent valuation and double bounded dichotomous have been used. Research data were obtained by field method and interview with 184 pistachio gardeners in 2012. Results suggest that willingness to pay premium of pistachio tree in central part, Anar and Kashkuieh has been estimated by 1953, 3255.8 and 1183.3 IRR per tree respectively. Considering results and high risk destruction of pistachio trees, it is suggested that premium of pistachio tree is offered to reduce risk and loss of pistachio gardeners. In order to determine premium in Rafsanjan, WTP calculated in this study can be used.