Drought events have imposed many damages to the country during the recent decades. Having a direct dependency on natural resource, many people acquiring income in this way have always been encountered with damages of drought. The insurance is a useful method for reducing such income risk. The main aim of this study is to evaluate this income risk and assessing the demand function of range insurancestressing on the effects of income risk on mentioned demand function in Isfahan province. To do this, the Isfahan drought issue was studies. In the next step, regarding the results of this section, the study area was selected. All needed data have been gathered using methods of interview, questionnaire and studding in library. In order to achieve the general goal of the research with regard to the aim of the study, two approaches of statistical and descriptive statistics have been applied for analyzing the obtained information from 120 selected pastoralists through a systematic- random method. Two groups of insurer and non-insurer pastoralists each having 60 samples make the entire statistical society of this research. The results indicated that the Isfahan province has had the drought problem since the last two decades, which can be divided into three weak, medium and extreme dir=ltr Keywords: demand function,Isfahan province, The drought income risk, FMDI, rangelandinsurance
