Kiyanoush Ghalavand - PHD, Research, Scholar, Faculty of Art, Department of Gandhian Studies, Punjab University Chandigarh, India.
Masoud Ghorban Hossaini - Dep. of Management, Islamic Azad University, Saveh Branch, Iran.
Majidollah Fallah Kafshgari - Dep. of Management, Islamic Azad University, Gorgan Branch, Iran.

Agriculture is central to the livelihoods of the rural poor and in the attainment of the Millennium Development Goals (MDGs). Agriculture can be the engine of growth and is necessary for reducing poverty and food insecurity, particularly in worldwide.Agriculture is one of the most important sectors of the Iranian economy, accounting for 10% of GDP, 30% of the employed population and 22% of the foreign exchange revenues gained from non-oil exports.Agriculture is inherently risky. Production risks include, but are not limited to, climatic hazard which of all the hazards agriculture faces is perhaps the most difficult one for the agriculturalist to manage. Thus agriculture is a risky occupation. There are many factors out of farmers' control and unpredictable. Insurance has an important role in agricultural production and is a tool to support farmers against threats. Factorial Analysis of Obstacles Insurance Development strategy was the objective of this study. The research was conducted in Khuzestan Province, one of the big south-west provinces in Iran. Survey was the research method, and data was collected by questionnaire and Schedule interview. Findings revealed that the farmers with higher rate of Drought insurance Adoption, were younger with higher level of literacy, they had more crop area and more income, they had more awareness towards the goals and advantages of crop insurance, they often consult with other farmers and they have more participation in training classes and sessions. Also, rate of their contact with agricultural extension and insurance agents was higher, they more participated in extension lectures and more visited crop insurance company's activities. The results revealed that four independent variables explain adoption of Drought insurance. Consult with other farmers is the main independent variable. The variables affecting crop insurance (31 variables) were classified to nine factors according to factor analysis technique. Extension- education factor, economic factor, communication channels factor, opinion leadership factor, facility factor, confidential factor,supervision factor, and diversity factor are the factors. Based on the research findings, some recommendations are presented at the end of the paper.

Insurance, Drought, Development, Agriculture, Iran