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

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.

scholarly journals Fiscal Policy Dilemma in Resolving Agricultural Risks: Evidence from China’s Agricultural Insurance Subsidy Pilot

2021 ◽  
Vol 18 (14) ◽  
pp. 7577
Author(s):  
Yuqiang Gao ◽  
Yongkang Shu ◽  
Hongjie Cao ◽  
Shuting Zhou ◽  
Shaobin Shi
Keyword(s):  
Mechanism Analysis ◽  
Agricultural Insurance ◽  
Production Scale ◽  
Subsidy Policy ◽  
Agricultural Environment ◽  
Green Development ◽  
Fixed Assets ◽  
The Government ◽  
The Impact ◽  
Sown Area

The agricultural insurance subsidy policy (AISP) encourages farmers to expand production scale by mitigating production risks. Under the high-input production patterns of traditional agriculture, the implementation of AISP is conducive to increase farmers’ income, but it also leads to the destruction of the agricultural environment. Achieving agricultural green development (AGD) has been hindered in China. In this context, this paper attempts to analyze the impact of AISP on farmers’ income and the agricultural environment. Based on the panel data of 316 prefecture-level cities from 2003 to 2012 in China, this paper empirically tests the effects of AISP by employing methods such as time-varying difference-in-difference (DID). The results show that AISP has significantly promoted the growth of farmers’ incomes but has negatively impacted the agricultural environment. Furthermore, the mechanism analysis shows that the policy effects are realized by affecting the quantity of main productive fixed assets (Mpfa) and grain sown area per capita (Gsa). In addition, the policy effect is heterogeneous in different regions. Therefore, the government should appropriately raise the subsidy standard for farmers who adopt environmental-friendly production patterns. At the same time, the government should give more subsidies to the large grain-producing areas.

scholarly journals Assessing the Vulnerability of Rural Households to Floods at Pol-e Dokhtar Region in Iran

2022 ◽  
Vol 14 (2) ◽  
pp. 762
Author(s):  
Somayeh Ahmadi ◽  
Rezvan Ghanbari Movahed ◽  
Saeed Gholamrezaie ◽  
Mehdi Rahimian
Keyword(s):  
Rural Areas ◽  
Technical Assistance ◽  
Agricultural Sector ◽  
Rural Households ◽  
Policy Implications ◽  
Primary Data ◽  
Agricultural Insurance ◽  
Coping Capacity ◽  
Low Levels ◽  
The Government

The agricultural sector in rural areas is seriously affected by climate change, affecting agricultural production and farming communities. This paper investigates rural households’ vulnerability to floods in the seven agricultural-based regions of Pol-e Dokhtar, south of Lorestan Province, Iran. The primary data for the vulnerability indicators were collected from 322 households. Three main components of vulnerability, including exposure, sensitivity, and adaptive capacity, were measured using the obtained data. The weighting of indicators was done by the MSF method and using MATLAB software. The results showed that the social and economic characteristics of households affect their vulnerability to floods. The Jayder, Mamolan, and Afrineh regions, which were more exposed to floods, had less capacity for adaptation. The results showed that the most vulnerable communities could be described by characteristics such as low levels of agricultural insurance, limited access to credit, low levels of income diversification, high levels of unemployment, low levels of social capital, higher dependency ratios, and poor infrastructure. This research showed that diversified livelihoods have a significant effect on reducing farmers’ sensitivity to floods. The study proposes policy implications to increase resilience and reduce farmers’ vulnerability to floods. The government and other development partners should prioritize the most vulnerable areas by improving their access to finance and providing the technical assistance required for increasing their coping capacity.

scholarly journals Risk aversion level influence on farmer’s decision to participate in crop insurance: A review

2019 ◽  
Vol 65 (No. 10) ◽  
pp. 481-489 ◽  
Author(s):  
Rizky Yanuarti ◽  
Joni Murti Mulyo Aji ◽  
Mohammad Rondhi
Keyword(s):  
Risk Aversion ◽  
Positive Impact ◽  
Insurance Premium ◽  
Point Of View ◽  
Rice Farming ◽  
High Input ◽  
Agricultural Insurance ◽  
The Government ◽  
High Level ◽  
Almost All

Agricultural insurance in Indonesia is focused specifically on rice farming and is locally known as Asuransi Usahatani Padi (AUTP). To encourage farmer participation, the government subsidises farmers’ cost of insurance (premium) by 80%. Despite high subsidy, AUTP is still unable to reach the coverage target. The objectives of this study are to investigate farmers’ Risk Aversion Level (RAL), its influence on farmers’ decision to participate in AUTP, and the effect of farmers’ participation in AUTP on their income. The result of this study can contribute to enriching agriculture insurance literature from the point of view of developing countries and catalyse other studies on this matter especially in Indonesia. The analysis methods used in this study were multiple pricelist designs and propensity score matching with a logistic regression model. 130 farmers were interviewed. The results showed that farmers tend to have a high level of risk aversion (82.3% of farmers insure almost all of their land). RAL has a significant effect on farmers’ decision to purchase AUTP (< 0.01). A positive value of Average Treatment on the Treated (ATT) indicated that participation in AUTP has a positive impact on farmers’ income. AUTP is able to absorb production risks and encourage use of high input in farming.

scholarly journals Smallholder Farmers’ Access to Agricultural Insurance Schemes: An Analysis of the Inhibitors in Kogi State, Nigeria

2021 ◽  
Vol 9 (12) ◽  
pp. 2159-2165
Author(s):  
Benjamin Chiedozie Okpukpara ◽  
Olusegun Adebayo ◽  
Ikenna Charles Ukwuaba
Keyword(s):  
Smallholder Farmers ◽  
Insurance Premium ◽  
Primary Data ◽  
Small Scale ◽  
Agricultural Insurance ◽  
Agricultural Enterprise ◽  
The Mean ◽  
The Government ◽  
Small Scale Farmers ◽  
Structured Questionnaire

The study examined the constraints of access to the use of agricultural insurance schemes (AIS) by small-scale farmers in Kogi State, Nigeria. Sustainable agricultural enterprise in most developing countries like Nigeria can be achieved through adequate financing especially in the area of agricultural insurance. Despite the existence of insurance services by the Nigerian Agricultural Insurance Corporation and other private firms in Nigeria, there has been a low level of participation of farmers buying insurance premium; thus, there is a need to examine the hindrances in accessing the scheme. The specific objectives were to describe the socio-economics characteristic of small- scale farmers, examine the types of agricultural insurance and evaluate the constraints in accessing AIS in the study area. Primary data were collected from 150 farmers with the aid of a well-structured questionnaire. Data were analyzed using descriptive statistics. Results showed that farmers in the study area were dominated by the married (68%), literates (81.33) and males (73.33%) with the mean age and farming experience of 47 and 19 years respectively. Crop insurance (56%) and farm implement insurance (46%) were the major types of agricultural insurance used by the farmers. Rigorous procedures in claim settlement (3.266), poor government attention (3.106) poor repayment (3.080) and non-coverage of all the crops (3.093) were among the major challenges in accessing AIS) in the study area. The study recommended that the government through the ministry of Agriculture or Bank of Agriculture should eliminate the bureaucratic processes and bottlenecks encountered by the farmers in accessing AIS.

scholarly journals Analisis Asuransi Pertanian di Indonesia : Konsep, Tantangan dan Prospek

1969 ◽  
Vol 12 (1) ◽  
pp. 9-27
Author(s):  
Praptono Djunedi
Keyword(s):  
Social Assistance ◽  
Insurance Premium ◽  
The State ◽  
Good Prospect ◽  
Insurance Scheme ◽  
Agricultural Insurance ◽  
State Budget ◽  
Start Up ◽  
The Government ◽  
Technical Rules

Agriculture is one of the important sectorfor Indonesia. However, the sector is vulnerable to various risks that may impact on the fluctuation of the income of farmers. Related to this, through Law No. 19 of 2013, the government seeks to protect farmers, one of which is through agricultural insurance. As a start-up country, the problem faced is how to develop agricultural insurance in Indonesia. Related to that, this study aims to (1) describe the concept of agricultural insurance, (2) describe the challenges faced to develop agricultural insurance, and (3) explain how the prospect. Some of the challenges can be grouped into four challenges, namely institutional, financial, technical and operationalchallenges. For the good prospect in the future, implementation of agricultural insurance is proposed to (1) gradually increase the allocation in state budget, (2) develop technical rules which include agricultural insurance scheme in compulsory basis, (3) encourage the relevant parties to commit in developing agricultural insurance (4) assign to the state-owned insurance as providers and distributors of agricultural insurance as well as a role as reinsurance agency, (5) assess the integration between the agricultural insurance scheme and agricultural services received by farmers (subsidized fertilizer, subsidized seed, and social assistance).Keywords: farmer, risk, agricultural insurance, premium subsidySektor pertanian merupakan salah satu sektor yang penting bagi Indonesia. Namun, sektor ini rentan terhadap berbagai risiko yang dapat berdampak pada berfluktuasinya pendapatan para petani. Terkait dengan hal ini, melalui Undang Undang Nomor 19 Tahun 2013, pemerintah berupaya melindungi petani, salah satunya adalah melalui asuransi pertanian. Sebagai negara start-up, permasalahan yang dihadapi adalah bagaimana cara mengembangkan asuransi pertanian di Indonesia. Terkait hal itu, tujuan kajian ini adalah (1) memaparkan konsep asuransi pertanian, (2) memaparkan berbagai tantangan yang dihadapi untuk mengembangkan asuransi pertanian, dan (3) menjelaskan bagaimana prospeknya. Beberapa tantangan yang dihadapi bisa dikelompokkan menjadi empat tantangan yakni tantangan institusional, finansial, teknis dan operasional. Agar implementasi asuransi pertanian memiliki prospek yang baik, diusulkan agar (1) meningkatkan alokasi dana implementasi asuransi pertanian dalam APBN secara bertahap, (2) menyusun aturan teknis yang diantaranya mengatur kepesertaan asuransi pertanian bersifat wajib, (3) mendorong pihak terkait sesuai dengan perannya berkomitmen mengembangkan asuransi pertanian, (4) memberi penugasan kepada BUMN asuransi sebagai penyedia dan penyalur asuransi pertanian serta berperan sebagai lembaga reasuransi, (5) mengkaji pengintegrasian antara program asuransi pertanian dengan layanan sektor pertanian yang diterima petani (pupuk bersubsidi, benih bersubsidi, dan bantuan sosial).Kata kunci: petani, risiko, asuransi pertanian, subsidi premi.

The Problem of Agricultural Taxation in West Pakistan and an Alternative Solution: A Comment (Notes & Comments)

1973 ◽  
Vol 12 (4) ◽  
pp. 433-437
Author(s):  
Sarfaraz Khan Qureshi
Keyword(s):  
Capita Income ◽  
Agricultural Sector ◽  
Central Government ◽  
Policy Implications ◽  
Farm Size ◽  
Per Capita Income ◽  
Tax Rate ◽  
Water Rate ◽  
Per Capita ◽  
The Government

In the Summer 1973 issue of the Pakistan Development Review, Mr. Mohammad Ghaffar Chaudhry [1] has dealt with two very important issues relating to the intersectoral tax equity and the intrasectoral tax equity within the agricultural sector in Pakistan. Using a simple criterion for vertical tax equity that implies that the tax rate rises with per capita income such that the ratio of revenue to income rises at the same percentage rate as per capita income, Mr. Chaudhry found that the agricultural sector is overtaxed in Pakistan. Mr. Chaudhry further found that the land tax is a regressive levy with respect to the farm size. Both findings, if valid, have important policy implications. In this note we argue that the validity of the findings on intersectoral tax equity depends on the treatment of water rate as tax rather than the price of a service provided by the Government and on the shifting assumptions regard¬ing the indirect taxes on imports and domestic production levied by the Central Government. The relevance of the findings on the intrasectoral tax burden would have been more obvious if the tax liability was related to income from land per capita.

School Catchment Zone Mergers and Housing Wealth Redistribution

2021 ◽  
pp. 0739456X2110067
Author(s):  
Siu Kei Wong ◽  
Kuang Kuang Deng
Keyword(s):  
School Quality ◽  
Housing Prices ◽  
Estimation Method ◽  
Policy Implications ◽  
Housing Wealth ◽  
Housing Values ◽  
Wealth Redistribution ◽  
The Government ◽  
Empirical Design

This study investigates how perceived school quality affects housing values, using a new estimation method. Our empirical design takes advantage of the mergers of school catchment zones initiated by the government to develop quasi-experiments. We find that, in zones that gained sudden access to higher ranked schools, housing prices increased by 1.3 to 4.1 percent. Larger and more expensive houses appreciated more in response to the improvement in perceived quality of available schools. The findings generate important policy implications regarding housing wealth redistribution and housing expenditures among different households. The study also enriches the literature on the capitalization effect of school quality.

Explaining Country Heterogeneity in E-Government Evolution Based on Longitudinal Analysis of Nations

2021 ◽  
Vol 12 (3) ◽  
pp. 83-95
Author(s):  
Prakrit Silal ◽  
Debashis Saha
Keyword(s):  
Longitudinal Analysis ◽  
Clustering Analysis ◽  
Policy Implications ◽  
Development Indicators ◽  
The Past ◽  
Country Level ◽  
The Government

E-government (EGOV) has emerged as an important innovation disrupting the government-citizen relationship in the past two decades. It has attracted wide attention from scholars across varied domains. However, most of these scholarly works, while richly contributing to this evolving domain, assume homogeneity and uniformity in its design, implementation, and impact. This “one size fits all” approach fails to account for the contextual richness, often culminating in a “design-reality” gap. Also, the existing literature lacks adequate investigation of EGOV heterogeneities along time. To address the lacuna, this study attempts to uncover country-level heterogeneities inherent in EGOV longitudinal evolution. Using a dataset over 2008-2018, the study performs a longitudinal clustering analysis and identifies four distinct cohorts with varying EGOV trajectories. Further, the study uncovers variations in EGOV's influence on country-level development indicators across the four cohorts. The findings help derive theoretical and policy implications while identifying avenues for future works.

The African Union and coercive diplomacy: the case of Burundi

2018 ◽  
Vol 56 (4) ◽  
pp. 673-696 ◽  
Author(s):  
Nina Wilén ◽  
Paul D. Williams
Keyword(s):  
Conflict Management ◽  
State Sovereignty ◽  
Military Force ◽  
African Union ◽  
Management Tools ◽  
Coercive Diplomacy ◽  
Civilian Protection ◽  
Peace And Security ◽  
New Type ◽  
The Government

AbstractIn December 2015, the African Union (AU) took the unprecedented step of threatening to use military force against the government of Burundi's wishes in order to protect civilians caught up in the country's intensifying domestic crisis. This article traces the background to this decision and analyses the effectiveness and credibility of the AU's use of coercive diplomacy as a tool of conflict management. After its usual range of conflict management tools failed to stem the Burundian crisis, the AU Commission and Peace and Security Council tried a new type of military compellence by invoking Article 4(h) of the Union's Constitutive Act. We argue that the threatened intervention never materialised because of (1) the Burundian government's astute diplomacy and (2) several African autocrats’ resistance to setting a precedent for future interventions where concerns about civilian protection might override state sovereignty.

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