Abstract:
The contribution of the Agricultural sector is extremely important to the
development of a country. Nearly 70 percent of the total population living in rural
areas depends completely or partially on the agriculture sector. Agriculture is an
economic sector that is exposed to effect many kinds of risks such as floods,
droughts, rainfalls, disease, and pest’s attack. Thus, the study aims at identifying
the risks faced by the farmers, and to analyze the farmer’s willingness to participate
in agriculture Takāful as well. Apart from this, this study also aims at investigating
the relationship of participant intention in agriculture Takāful by applying the
Theory of Planned Behaviour which included three factors that are Attitude,
Subjective Norms, and Perceived Behavior Control. The sample size of this study is
160 that were randomly chosen from the Sammanthurai division. Descriptive
analysis for demographic factors, and Pearson correlation and regression analysis
are used to measure the relationship between the variables. Finally, this study
indicates that the risk often faced by the farmers is caused by pests’ attack among
popular affecting reasons in the industry. Thus, two factors that attitude and
subject norm are the most significant impact on farmers’ intention to participate in
Agriculture Takaful to survive or protect from the injuries and losses which happens
in agriculture.
