The objective of this study was to understand factors influencing farmers’ holding of drought insurance contracts. Using questionnaires, a cross sectional survey with 410 randomly selected household heads was conducted to cotton growers from three wards of Bunda district in Tanzania, involving farmers who were in the program and non-participating farmers. Results from logistic regression analysis indicated that, perception of respondents about the drought incidence occurrences, household that previously suffered loss due to drought and the productive age with more experience in farming had negative influence on holding of drought insurance contract in the study area. Farmers’ needs should be considered and adequately incorporated into technical arrangements of program implementation to improve participation of farmers in the drought insurance program
Keywords: Contract holding, Cotton growers, Drought insurance, Tanzania
