scholarly journals Weather based crop insurance for risk management in agriculture

2021 ◽  
Vol 22 (2) ◽  
pp. 101-108
Author(s):  
LATA VISHNOI ◽  
ANUPAM KUMAR ◽  
SUNIL KUMAR ◽  
GAURAV SHARMA ◽  
A.K. BAXLA ◽  
...  
Keyword(s):  
Risk Management ◽  
Crop Insurance ◽  
Secondary Data ◽  
Weather Data ◽  
Farm Income ◽  
Insurance Scheme ◽  
Agricultural Insurance ◽  
Income Insurance ◽  
Critical Issues ◽  
The Government

In recent years, in many parts of the country, indebtedness, crop failures, unpaid prices and poor returns have resulted in agrarian distress. The government has identified and introduced several programs to address these critical issues viz. crop insurance, lending waivers etc. among them. Crop insurance as a concept for risk management in agriculture has emerged in India since the turn of the twentieth century and government has launched various insurance schemes in last three decades like Comprehensive Crop Insurance Scheme (CCIS), National Agricultural Insurance Scheme (NAIS) and Modified NAIS (MNAIS) etc. Apart from these schemes, several other pilot projects such as Seed Crop Insurance, Farm Income Insurance Scheme and Weather Based Crop Insurance Scheme (WBCIS) were implemented from time to time. At present, two most important schemes are functional i.e. Pradhan Mantri Fasal BimaYojna (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) are in operation. This study focused on the performance of the Restructured Weather based Crop Insurance Scheme (RWBCIS) from historical and analytical perspectives and presents recommendation for future scenarios. RWBCIS scheme having two most important challenges. Firstly, weather data related issues by designing a modern scientific approach to develop high resolution secondary data and secondly, modifying the existing design of RWBCIS Products, based on sound agronomic principles.

Crop Insurance in India – Past, Present&Future

2002 ◽  
Vol 6 (2) ◽  
pp. 29-39 ◽  
Author(s):  
K. N. Rao
Keyword(s):  
Crop Insurance ◽  
Single Point ◽  
Social Benefits ◽  
Insurance Scheme ◽  
Agricultural Insurance ◽  
Farming Community ◽  
The Social ◽  
Increase Productivity ◽  
The Government

In a country like India where nearly 2/3rd of the population depends on agriculture for their livelihood and agriculture is prone to the vagaries of nature, crop insurance has to play the role of a vital institution. Crop insurance itself cannot increase productivity or be a source of financing, but it can play a role in enhancing both. The Comprehensive Crop Insurance Scheme (CCIS) introduced during the VIIth Five-year plan period, despite its shortcomings, farmers received nearly 6 times the premium as claims, but the coverage could not go beyond 5% of the total farming community. The National Agricultural Insurance Scheme (NAIS), which replaced CCIS w.e.f. 1999–00, is an improved version. All successful crop insurance programs worldwide are actively supported and financed by governments and the case is no different for India, as the social benefits outweigh the social costs. The government has two immediate tasks. One, to streamline the financing of crop insurance through single point subsidy and allow the program to run professionally. And second, to improve the scheme substantially through such measures as covering post harvest losses, package policies, reduction of size of insurance unit, streamlining agricultural relief, setting up an exclusive organisation for implementation.

Crop Insurance Prediction Using R for Pradhan Mantri Fasal Bima Yojana in TamilNadu

2021 ◽  
Vol 10 (4) ◽  
pp. 46-57
Author(s):  
D. Hebsiba Beula ◽  
S. Srinivasan ◽  
C. D. Nanda Kumar
Keyword(s):  
Crop Insurance ◽  
Research Question ◽  
Primary Source ◽  
Secondary Data ◽  
Statistical Regression ◽  
Agricultural Insurance ◽  
Insurance Program ◽  
Statistical Program ◽  
Multiple Case ◽  
The Government

Agriculture is the primary source of livelihood for farmers in many underdeveloped regions, so due to climate change or other risks, crop insurance is thought to be essential, but the research question answered in the current study pertains to insurance program performance. The government-administered crop insurance program was analysed using a mixed methods design. A multiple case study was conducted in the TamilNadu region (India) to analyse the program, identify the causal factors, and collect relevant claim secondary data. Then the R statistical program was applied to analyse crop performance by developing a linear model of crop actual yields versus threshold yields (rabi, paddy, and kharif) using claim payments as the dependent variable. R statistical regression model programming was explained in detail. Recommendations were provided to economic decision makers on how to enhance agricultural insurance and rural development.

scholarly journals Determinants of Cocoa (Cacao Theobroma) Farmers Uptake of Crop Insurance: Evidence from Ekiti State

2020 ◽  
pp. 96-104
Author(s):  
Olatomide Waheed Olowa ◽  
Omowumi Ayodele Olowa
Keyword(s):  
Crop Insurance ◽  
Risk Preferences ◽  
Household Size ◽  
Farm Income ◽  
Cocoa Bean ◽  
Agricultural Insurance ◽  
Processing Technologies ◽  
Significant Difference ◽  
Household Heads ◽  
Cocoa Farmers

Cocoa farmer faces increasing challenging environment through exposure to risks factors which have impacted negatively on their production or output. Since farmers are primary producers and often times lack capacity to control risks factor, it is important to manage this factors. This study examines the cocoa farmers’ risk preferences and crop insurance perception and isolates the drivers of decision to uptake crop insurance among cocoa farmers in Ekiti state. The sample for the study consist of 200 cocoa farmers who were household heads selected through multi-stage sampling across four Local government areas of Ekiti State who are predominantly cocoa producers. Data collected on socio-demographic characteristics, perception of crop insurance and risk preferences, were analyzed using descriptive statistics and binary logistic model. Results showed that majority of the cocoa farmers were without crop insurance, with higher enrolment in Membership of cooperative society, owned their land, larger household size and lower educational level but higher level of farm experience when compared to cocoa farmers who are holding crop insurance. Farmers risk preferences showed no significant difference between farmers with or without insurance. Education (β=0.59), Household size (β=0.0029) and Debt use (β=0.02), Membership of cooperative (β=-4.53), Farming Experience (β=-2.51), Owned Land (β=-2.19) and Non-Farm Income (β=-0.65) were among the significant determinants of insurance uptake. Risk mitigating measures such as provision of necessary incentives such as improved varieties of cocoa seedling, as well as provision of fertiliser and approved pesticides, financial assistance, and simple processing technologies that produce standard cocoa bean plus a re-jigged Nigeria Agricultural Insurance Corporation (NAIC) for an improved discharge of its function are recommended.

scholarly journals Near Real-Time Biophysical Rice (Oryza sativa L.) Yield Estimation to Support Crop Insurance Implementation in India

Agronomy ◽  
2020 ◽  
Vol 10 (11) ◽  
pp. 1674
Author(s):  
Ponraj Arumugam ◽  
Abel Chemura ◽  
Bernhard Schauberger ◽  
Christoph Gornott
Keyword(s):  
Oryza Sativa ◽  
Real Time ◽  
Spatial Resolution ◽  
Yield Loss ◽  
Smallholder Farmers ◽  
Oryza Sativa L ◽  
Crop Insurance ◽  
Weather Data ◽  
Insurance Scheme ◽  
Agricultural Income

Immediate yield loss information is required to trigger crop insurance payouts, which are important to secure agricultural income stability for millions of smallholder farmers. Techniques for monitoring crop growth in real-time and at 5 km spatial resolution may also aid in designing price interventions or storage strategies for domestic production. In India, the current government-backed PMFBY (Pradhan Mantri Fasal Bima Yojana) insurance scheme is seeking such technologies to enable cost-efficient insurance premiums for Indian farmers. In this study, we used the Decision Support System for Agrotechnology Transfer (DSSAT) to estimate yield and yield anomalies at 5 km spatial resolution for Kharif rice (Oryza sativa L.) over India between 2001 and 2017. We calibrated the model using publicly available data: namely, gridded weather data, nutrient applications, sowing dates, crop mask, irrigation information, and genetic coefficients of staple varieties. The model performance over the model calibration years (2001–2015) was exceptionally good, with 13 of 15 years achieving more than 0.7 correlation coefficient (r), and more than half of the years with above 0.75 correlation with observed yields. Around 52% (67%) of the districts obtained a relative Root Mean Square Error (rRMSE) of less than 20% (25%) after calibration in the major rice-growing districts (>25% area under cultivation). An out-of-sample validation of the calibrated model in Kharif seasons 2016 and 2017 resulted in differences between state-wise observed and simulated yield anomalies from –16% to 20%. Overall, the good ability of the model in the simulations of rice yield indicates that the model is applicable in selected states of India, and its outputs are useful as a yield loss assessment index for the crop insurance scheme PMFBY.

scholarly journals Factors Affecting Farmers' Utilization of Agricultural Risk Management Tools: The Case of Crop Insurance, Forward Contracting, and Spreading Sales

2009 ◽  
Vol 41 (1) ◽  
pp. 107-123 ◽  
Author(s):  
Margarita Velandia ◽  
Roderick M. Rejesus ◽  
Thomas O. Knight ◽  
Bruce J. Sherrick
Keyword(s):  
Risk Management ◽  
Crop Insurance ◽  
Probit Analysis ◽  
Farm Income ◽  
Multinomial Probit ◽  
Agricultural Risk ◽  
Management Tools ◽  
Factors Affecting ◽  
Adoption Decisions ◽  
Forward Contracting

Factors affecting the adoption of crop insurance, forward contracting, and spreading sales are analyzed using multivariate and multinomial probit approaches that account for simultaneous adoption and/or correlation among the three risk management adoption decisions. Our empirical results suggest that the decision to adopt crop insurance, forward contracting, and/or spreading sales are correlated. Richer insights can be drawn from our multivariate and multinomial probit analysis than from separate, single-equation probit estimation that assumes independence of adoption decisions. Some factors significantly affecting the adoption of the risk management tools analyzed are proportion of owned acres, off-farm income, education, age, and level of business risks.

scholarly journals ANALISIS PENDAPATAN USAHATANI DAN SALURAN PEMASARAN BIBIT KARET RAKYAT DI DESA AIR BATU KECAMATAN TALANG KELAPA KABUPATEN BANYUASIN PROPINSI SUMATERA SELATAN

2018 ◽  
Vol 7 (1) ◽  
pp. 71
Author(s):  
Sri Rahayu Endang Lestari
Keyword(s):  
Secondary Data ◽  
Marketing Channel ◽  
Marketing Channels ◽  
Production Costs ◽  
Primary Data ◽  
Survey Method ◽  
Farm Income ◽  
Or Groups ◽  
Farmer Groups ◽  
The Government

 ABSTRACT The purpose of this study was to determine how much farm income and marketing channels for smallholder rubber seeds in Air Batu Village, District of Talang Kelapa, Banyuasin Regency. The implementation of this research had started from July to August 2015. The research method used  survey method. Primary data collection was done by direct observation in the field and secondary data was obtained from village, sub-district, district monographs and written sources. The results showed that the average income from the results of rubber nursery farming activities in Air Batu village was Rp. 7,560,084.00 - per hectare, while the marketing channel for smallholder rubber seedling farming in Air Batu Village is from farmers to village collectors (agents) and forwarded to consumers inside and outside the Banyuasin Regency. It can also be concluded that the income of rubber nursery farming in polybags cultivated by farmers in Air Batu Village is good enough, to reduce production costs, farmers should not buy sleeping eye stum seeds to other parties, but strive to make their own nurseries or groups. The recommended advice from this research is looks like better for the farmers join farmer groups of rubber nursery farming, so if there is a problem, it can be solved together. The government is also expected to provide assistance to farmers, in the form of distribution services, for smallholder rubber seeds, so that farmers should not have to wait too long to make a profit.ABSTRAK Tujuan dari penelitian ini adalah untuk mengetahui berapa besar pendapatan usahatani dan saluran pemasaran bibit karet rakyat di Desa Air Batu Kecamatan Talang Kelapa Kabupaten Banyuasin.  Pelaksanaan penelitian ini dimulai dari bulan Juli sampai Agustus 2015. Metode penelitian yang digunakan adalah metode survey. Pengambilan data primer dilakukan dengan pengamatan langsung dilapangan dan data sekunder diperoleh dari monografi desa, kecamatan, kabupaten dan sumber-sumber tertulis. Hasil penelitian menunjukkan bahwa rata-rata pendapatan dari hasil kegiatan usahatani pembibitan karet di desa Air Batu sebesar Rp. 7.560,084,00,- per hektar. Sedangkan Saluran pemasaran usahatani bibit karet rakyat di Desa Air Batu adalah mulai dari Petani ke Pedagang Pengumpul Desa (agen) dan diteruskan ke  Konsumen di dalam dan di luar Kabupaten Banyuasin. Dalam penelitian ini juga dapat disimpulkan bahwa pendapatan usahatani pembibitan karet dalam polybag yang diusahakan oleh petani di Desa Air Batu sudah cukup baik, untuk memperkecil biaya produksi sebaiknya para petani tidak membeli bibit stum mata tidur kepada pihak lain, tetapi diupayakan agar membuat pembibitan sendiri atau berkelompok.  Adapun saran yang dianjurkan dari penelitian ini adalah diharapkan kedepan petani membentuk kelompok tani untuk usahatani pembibitan karet, sehingga jika ada suatu permasalahan dapat diatasi secara bersama-sama. Pemerintah juga diharapkan memberikan bantuan kepada para petani berupa jasa penyaluran bibit karet rakyat, sehingga para petani tidak perlu menunggu lama untuk memperoleh keuntungan

scholarly journals Foreign experience in agricultural insurance

2020 ◽  
Vol 36 (4) ◽  
pp. 78-109
Author(s):  
Gordana Radović
Keyword(s):  
Risk Management ◽  
Agricultural Production ◽  
Management Strategy ◽  
18Th Century ◽  
Crop Insurance ◽  
Global Level ◽  
Risk Management Strategy ◽  
Agricultural Insurance ◽  
Agricultural Subsidies ◽  
The Right

The aim of this paper is to present characteristics of agricultural insurance at the global level. Agricultural insurance is most often seen, in a narrower sense, as crop insurance and livestock insurance. This type of economic protection has been applied since the 18th century, and today it is considered a part of a comprehensive risk management strategy in agricultural production. The most significant differences in agricultural insurance, at the global level, are the risks that can be insured in certain countries, as well as whether, or to what extent, agricultural insurance premiums are subsidized by the state. Agricultural insurance in most countries is voluntary, somewhere it is a condition for exercising the right to agricultural subsidies, and it is mandatory only in Greece and Cyprus.

scholarly journals Perception and risk management strategies for ranchers and their determinants: a case study from Turkey

2021 ◽  
Vol 51 (6) ◽  
Author(s):  
Seyit Hayran ◽  
Murak Külekçi ◽  
Aykut Gül
Keyword(s):  
Risk Management ◽  
Management Strategies ◽  
Farm Income ◽  
Least Squares Regression ◽  
Data Set ◽  
Income Uncertainty ◽  
Perceptions Of Risk ◽  
Risk Management Strategies ◽  
Risk Sources ◽  
The Government

ABSTRACT: In this study, beef cattle farmers’ perceptions of risk and risk management strategies, and their determinants were analyzed using factor analysis and partial least squares regression analysis. The data set used in this study came from a survey conducted in Erzurum Province. The results demonstrated that variability in fodder price, insufficient farm income, uncertainty in government policies were perceived as the most important risks. Clean cattle shelter, off-farm income, monitoring and preventing livestock diseases were perceived as the most important risk management strategies. Results, also, demonstrated that some characteristics of farmers affected farmers’ perceptions. In this study, it was identified that the most important risk sources were economics-based. So, it was recommended that the government policy should be focused on preventing the fluctuations in input/output prices.

Farmers’ responses to the changes in Hungarian agricultural insurance system

2018 ◽  
Vol 78 (2) ◽  
pp. 275-288 ◽  
Author(s):  
Anna Zubor-Nemes ◽  
József Fogarasi ◽  
András Molnár ◽  
Gábor Kemény
Keyword(s):  
Risk Management ◽  
Panel Data ◽  
Technical Efficiency ◽  
Management System ◽  
Crop Insurance ◽  
Two Stage ◽  
Agricultural Insurance ◽  
Content Type ◽  
Risk Management System ◽  
The Relationship

Purpose The purpose of this paper is to investigate the role of crop insurance among Hungarian crop farmers and the responses to the introduction of the two-scheme risk management system. Specifically, first, it examines the economic and environmental factors affecting the willingness of farmers to contract crop insurance. Second, it reveals the relationship between having crop insurance and technical efficiency of crop producing farms. Design/methodology/approach Probit models of panel data are applied to explore the factors of insurance decisions. The relationship between efficiency and insurance is investigated with two-stage data envelopment analysis (DEA) model with double bootstrap using panel data for the 2001 to 2014 period. Findings The results of Probit model estimations show that the education, the size, the indebtedness of crop producing farms and the new two-scheme risk management system are in positive correlation, while the concentration of farming activity are in negative correlation with the crop insurance contracting. The estimations of two-stage DEA model reveal that crop producing farms with an agricultural insurance contract are more efficient than the farmers without using this risk management tool. Originality/value Empirical investigation of the influencing factors of agricultural insurance demand in Hungary and the examination of the relationship between insurance and technical efficiency may contribute to the development of Hungarian risk management system.

scholarly journals Evaluation of risk management tools for stabilising farm income under CAP 2014-2020

2017 ◽  
Vol 17 (1) ◽  
pp. 3 ◽  
Author(s):  
Alba Castañeda-Vera ◽  
Alberto Garrido
Keyword(s):  
Risk Management ◽  
Public Expenditure ◽  
Crop Insurance ◽  
Farm Income ◽  
Crop Diversification ◽  
Agricultural Policies ◽  
Management Tools ◽  
Direct Payments ◽  
Income Variability ◽  
On Farm

<p>Guaranteeing farm income stability is an objective of the European Union’s and the Spanish agricultural policies. In this paper, CAP direct payments, diversification, crop insurance and an Income Stabilisation Tool (IST) were compared considering (i) their effect on farm income and income stability, (ii) the expected farmers’ willingness for adoption, and (iii) the efficiency of public expenditure invested in supporting them. Main conclusions point at direct payments and  crop diversification as the most effective measures in decreasing income variability. Nevertheless, using crop  insurance or an IST has potential for both improving farm resilience to income variability and limiting public expenditure.</p>

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