Design of agricultural insurance policy for tea tree freezing damage in Zhejiang Province, China

The research has evaluated the situation of tea production of tea growers in PhuTho Province, Vietnam. Average tea plantation area among the largest group ofhouseholds is 0.61 ha. In production, the types of risks that tea growers encounterinclude: unfavorable weather (33.4%), diseases (13.2%), insects and worms(2.3%), capital (0.3%) and price which is the most major risk (50.8%). The surveyof 1,000 tea growers identified that 46.7% of the households are in need toparticipate in tea production insurance. The average willingness to pay wasestimated to be 2,407.07 (thousand VND/ha/year).If the agricultural program issuccessfully implemented in the province, it is estimated to have a total agriculturalinsurance fund of 34-35 billion VND/year. The survey results show that gender,education level, tea growing area and location are factors that affect the level ofwillingness to pay for agricultural insurance for tea trees. There are four solutionswhich are proposed to enhance the participation of tea growers in agriculturalinsurance for tea: (1) Development of an insurance product for the production offresh tea leaves for easier access from farmers; (2) Active communication onagricultural insurance policy to local authorities, farmers' union, agriculturalexpansion stations and especially the farmers; (3) Close collaboration betweenlocal authorities and enterprises in the review on current mechanisms and policiesto timely propose adjustments and supplements to meet the needs of farmers onagricultural insurance; (4) Strengthening coordination between the State, insurancecompanies, credit and financial institutions and farmers.

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Comparison study of agricultural insurance government subsidy and farmers' self-subsistent premium in Indonesia

ECONOMIA AGRO-ALIMENTARE ◽

10.3280/ecag2-2021oa12184 ◽

2021 ◽

pp. 1-24

Author(s):

Muhammad Yasir Yusuf ◽

Rahmat Fadhil ◽

T. Saiful Bahri ◽

Hafiizh Maulana

Keyword(s):

Participation Rate ◽

Insurance Premium ◽

Policy Implications ◽

Insurance Policy ◽

Simulation Test ◽

Agricultural Insurance ◽

Management Tools ◽

Subsidy Policy ◽

The Government ◽

Business Insurance

Agricultural Insurance as an embodiment of farmer protection and empowerment is carried out with The Rice Farming Business Insurance (AUTP) facility with an insurance premium scheme by the Government of 80% and 20% by farmers. This study aims to simulate the AUTP premium based on government's subsidy and farmers' self-subsistent premium. The simulation test used panel data estimates in Indonesia Province during 2016-2019. The AUTP premium simulation was identified through the Moderating Regression Analysis (MRA) approach, with the moderate variables being government subsidies and farmers' self-subsistent premium. The Government's premium subsidy policy became a pure moderator that significantly increased the AUTP land area by 0.057%. Meanwhile, the coefficient of the farmers' self-subsistent premium variable has a negative and significant effect on the realization of AUTP in Indonesia. The results of the policy simulation emphasize the importance of the government's role in encouraging the increase in the realization of AUTP through subsidizing premium assistance to farmers. The implication of this simulation of the MRA model is that the response and participation rate of the farmers' premium payments independently is not followed by an increase in the realization of AUTP in Indonesia. The policy implications in the simulation of the two equation models conclude the importance of managing subsidized farmer premium payments and self-subsistent schemes based on insured land and farmer insurance policy. Agricultural insurance policy needs to adopt risk management tools, diversify agricultural insurance programs, and calculate the willingness to pay agricultural insurance premiums appropriately.

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Crowding out agricultural insurance and the subsidy system in Italy: empirical evidence of the charity hazard phenomenon

Agricultural Finance Review ◽

10.1108/afr-04-2020-0061 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Pier Paolo Miglietta ◽

Donatella Porrini ◽

Giulio Fusco ◽

Fabian Capitanio

Keyword(s):

Scientific Progress ◽

Annual Data ◽

Crowding Out ◽

Insurance Policy ◽

Agricultural Insurance ◽

Content Type ◽

Dynamic Panel Model ◽

Panel Model ◽

Time Period ◽

Italian Regions

PurposeThe term “charity hazard” refers to the issue of the crowding out of insurance by co-existing relief programs in the context of different institutional governmental disaster schemes. In this context, the aim of this paper is to verify if the charity hazard phenomenon exists in the Italian agricultural insurance scheme.Design/methodology/approachAnnual data regarding crop insurance, subsidies and farm structure were extracted from ISMEA, ISTAT and FADN databases. A SYS-GMM dynamic panel model was estimated, considering the 2010–2017 time period and the Italian Regions as units of the analysis.FindingsThe empirical results highlight a negative relation between crop subsidies and the farmers' policies and total premium paid. The disincentive and crowd-out effects of public aid and subsidies on the choice of whether or not to take out an agricultural insurance policy ends up being one of the key factors for the low level of penetration of the agricultural insurance in Italy.Practical implicationsSince the diffusion of agricultural insurance can contribute to the general objective of sustainability and resilience, the implementation of alternative solutions to subsidies could be needed (e.g. the introduction of mandatory insurance against adversities or financial support for a geographically specific insurance tool).Originality/valueInvestigating empirically the determinants of the agricultural insurance policy diffusion among the Italian Regions, this study ensures an original contribution to the scientific progress in the field, demonstrating the existence of charity hazard caused by the public subsidies provision.

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Whether the Agricultural Insurance Policy Achieves Green Income Growth—Evidence from the Implementation of China’s Total Cost Insurance Pilot Program

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph19020852 ◽

2022 ◽

Vol 19 (2) ◽

pp. 852

Author(s):

Zhifeng Zhang ◽

Haodong Xu ◽

Shuangshuang Shan ◽

Qingzhi Liu ◽

Yuqi Lu

Keyword(s):

Central Government ◽

Income Growth ◽

Pilot Program ◽

Special Administrative Region ◽

Mechanism Analysis ◽

Insurance Policy ◽

Agricultural Insurance ◽

Total Cost ◽

Administrative Region ◽

Degree Of Damage

With the rise and popularization of the concept of green sustainable development, green income growth of agricultural insurance policies has attracted wide attention. Whether green income growth can be achieved has become an important criterion for measuring an agricultural insurance policy. In this context, this paper attempts to test whether the agricultural insurance policy achieves green income growth. Based on the panel data of 31 provinces (the research sample of this paper selects 31 provincial-level units (province for short) in China, including 22 provinces, 5 autonomous regions and 4 municipalities directly under the central government. Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan Province are not included in the research sample) from 2009 to 2020 in China, this paper empirically evaluates the triple-effect of total cost insurance pilot program (TCI) on farmers’ income, environment and public health by employing a difference-in-difference model (DID). The results show that TCI increases farmers’ income, but deteriorates the environment and residents’ health without achieving green income growth. In the analysis of heterogeneity, compared with central and western regions, farmers’ income is more likely to increase in the eastern regions. However, environmental pollution is more severe, and residents’ health deteriorates more, in eastern regions. In addition, the positive effect of TCI on farmers’ income and the deterioration of residents’ health is more obvious in areas with a higher degree of damage, while the negative effect of TCI on the environment is more obvious in areas with a lower degree of damage. Furthermore, the mechanism analysis shows that TCI not only promotes the increase in farmers’ income through insurance density, but also affects the environment and residents’ health through straw burning. Therefore, the government should raise the subsidy standard for farmers to use straw-processing equipment and also to implement differentiated subsidies in regions with different levels of economic development and areas with different degrees of damage.

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A New Tool for Covering Risk in Agriculture: The Revenue Insurance Policy

Risks ◽

10.3390/risks9070131 ◽

2021 ◽

Vol 9 (7) ◽

pp. 131

Author(s):

Angelo Frascarelli ◽

Simone Del Sarto ◽

Giada Mastandrea

Keyword(s):

Risk Management ◽

Agricultural Sector ◽

Insurance Coverage ◽

Price Volatility ◽

Insurance Companies ◽

Insurance Policy ◽

Agricultural Insurance ◽

Revenue Insurance ◽

The Common ◽

Using Data

Over the last years, the agricultural sector has faced increasing risks related not only to production activities, but also to climate adversity and a higher frequency of extreme events. These factors, combined with increased price volatility in the markets, have caused greater exposure to risk for farmers. For this reason, risk management in agriculture has taken on an important role within the Common Agricultural Policy. However, in recent years, gradual disaffection of farmers, low penetration of insurance in the arable sector, and a greater need for insurance coverage against market risks have characterised the subsidised risk management system. For all these reasons, starting in 2017, the National Agricultural Insurance Plan has provided new possibilities for covering risks. This paper aims to contribute to the debate on risk management linked to the revenue insurance policy recently adopted in Italy. Using data from the Italian Farm Accountancy Data Network, we simulate the application of the revenue insurance policy with a sample of Italian farms operating in the common and durum wheat sectors. The main findings show that the revenue insurance policy stipulation is, overall, sustainable for both farms and insurance companies.

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Application of Historical Burn Analysis Method in Determining Agricultural Premium Based on Climate Index Using Black Scholes Method

JTAM | Jurnal Teori dan Aplikasi Matematika ◽

10.31764/jtam.v4i1.1799 ◽

2020 ◽

Vol 4 (1) ◽

pp. 28

Author(s):

Devi Ariyanti ◽

Riaman Riaman ◽

Iin Irianingsih

Keyword(s):

Climate Index ◽

Index Insurance ◽

Analysis Method ◽

Insurance Policy ◽

Crop Failure ◽

Agricultural Insurance ◽

Insurance Program ◽

Black Scholes ◽

Planting Season ◽

Maximum Limit

Farmers often suffer losses due to crop failure. The failure of the harvest is influenced by one of them is flooding, especially in Bandung which is quite frequent rain. Therefore one of the government's efforts to minimize losses from crop failures is the existence of an agricultural insurance program. The insurance system used is climate index insurance where the climate index is not plant insurance. This study aims to get a large premium to be paid by farmers using the Black-Scholes method. Meanwhile, to determine the climate index using the Historical Burn Analysis method. The results of this study are getting a variety of trigger values and exit values as well as the amount of premium that must be paid by farmers every planting season. Trigger values represent the minimum full payment limit. The exit value represents the maximum limit for no payment. The premium value obtained based on the selected trigger value also varies and is large enough so that it can be considered by farmers in choosing an agricultural insurance policy. Therefore, the method used must still be investigated to adjust to farmers, especially in Bandung.

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Estimation of Frost Hazard for Tea Tree in Zhejiang Province Based on Machine Learning

Agriculture ◽

10.3390/agriculture11070607 ◽

2021 ◽

Vol 11 (7) ◽

pp. 607

Author(s):

Jie Xu ◽

Suri Guga ◽

Guangzhi Rong ◽

Dao Riao ◽

Xingpeng Liu ◽

...

Keyword(s):

Warning System ◽

Frost Damage ◽

Zhejiang Province ◽

Classification Model ◽

Support Vector ◽

Spring Frost ◽

Tea Tree ◽

Damage Area ◽

Svm Model ◽

Multi Class Classification

Tea trees are the main economic crop in Zhejiang Province. However, spring cold is a frequent occurrence there, causing frost damage to the valuable tea buds. To address this, a regional frost-hazard early-warning system is needed. In this study, frost damage area was estimated based on topography and meteorology, as well as longitude and latitude. Based on support vector machine (SVM) and artificial neural networks (ANNs), a multi-class classification model was proposed to estimate occurrence of regional frost disasters using tea frost cases from 2017. Results of the two models were compared, and optimal parameters were adjusted through multiple iterations. The highest accuracies of the two models were 83.8% and 75%, average accuracies were 79.3% and 71.3%, and Kappa coefficients were 79.1% and 67.37%. The SVM model was selected to establish spatial distribution of spring frost damage to tea trees in Zhejiang Province in 2016. Pearson’s correlation coefficient between prediction results and meteorological yield was 0.79 (p < 0.01), indicating consistency. Finally, the importance of model factors was assessed using sensitivity analysis. Results show that relative humidity and wind speed are key factors influencing accuracy of predictions. This study supports decision-making for hazard prediction and defense for tea trees facing frost.

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