The study assesses food crop farmers' willingness to participate in market-based crop insurance scheme in the Kintampo North Municipal of Ghana, using primary data solicited from 120 farmers in April 2010. The study employed descriptive statistical techniques to analyze the social, economic, demographic characteristics of farmers as well as their current risk management practices. Further, farmers' willingness to participate in a hypothetical market-based insurance scheme was estimated using

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... contingent valuation method. The results reveal that the mean willingness to pay premium for a hypothetical loss of GH¢ 1,000 of farm income is GH¢24.43. The minimum and maximum willingness to pay premium, in the insurance scheme are GH¢5.00 and GH¢80.00 respectively. The empirical results of the Binary Logit Model reveal that farm size, family size and diversification via livestock are factors that influence farmers' willingness to participate in crop insurance. Recommendations drawn for consideration by Government of Ghana (Ministry of Food and Agriculture), policy makers, insurance companies, development organizations and non-governmental organizations in rural poverty reduction are that the design and implementation of any crop insurance scheme in the Kintampo North Municipality and areas with similar characteristics should consider critical factors such as family size, farm size and livestock activities in the design. Further, a weather index-based insurance product should be piloted especially for droughts and floods while considering the current risk-management strategies employed by farmers. It is imperative that the Government subsidizes this program in the initial stages to encourage participation in the form of providing weather station equipment that would enable insurance companies to effectively validate liability claims by farmers.