Effects of Insurance Adoption and Risk Aversion on Agricultural Production and Technical Efficiency: A Panel Analysis for Italian Grape Growers

This article aims to evaluate the effect of insurance on production, technical efficiency, and input use of Italian specialised-quality grape growers. A panel instrumental variable stochastic frontier approach is applied over the years 2008–2017 using data from the Farm Accountancy Data Network. The results show the requirement to correct for the endogeneity that stems from insurance adoption. Insurance has an enhancing effect on production and efficiency and reduces the use of intermediate inputs. It suggests that insurance helps to diminish the risk-averse farmers’ suboptimal input use due to the presence of uncertainty. Crop insurance leads risk-averse farmers to behave as if they were risk neutral and employs the profit-maximising input vector. Therefore, by reducing the risks linked to the uncertainty of outcomes, crop insurance leads grape growers to go in the direction of profit maximisation.

Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology

This paper uses Soft Systems Methodology (SSM) to formulate strategies to prevent moral hazard acts in agricultural insurance in Indonesia. Agricultural insurance takes place, mainly, through Rice Crop Insurance and Cattle Insurance. Generally, the strategies that can be performed to minimize moral hazard practice in agricultural insurance programs are: developing the capacity of human resources, improving field communication, enforcing penalties, institutional strengthening, and adding new products through Islamic agricultural insurance. Specifically, this paper proposes that the prevention of moral hazard practices can be done by implementing Islamic agricultural insurance systems with the concept of risk-sharing instead of risk transfer.

Can Crop Insurance Encourage Farmers to Adopt Environmentally Friendly Agricultural Technology—The Evidence from Shandong Province in China

It is critical to encourage farmers to adopt agriculture technology that is beneficial to the environment in the context of the ongoing emphasis on the ecological growth of agriculture, yet risk and uncertainty diminish the incentive to adopt these technologies. This research examines whether crop insurance might affect and increase willingness to adopt Environmentally Friendly Agricultural Technology (EFAT) from a psychological perspective, utilizing data from 219 questionnaires in Shandong Province. The findings suggest that crop insurance can boost readiness to embrace technology in three ways: motivation, ability, and opportunity; however, the positive effect of motivation on farmers diminishes as capacity increases. Insurance companies must offer products that contain the risk of adopting EFAT as an insurance obligation as soon as feasible to successfully boost willingness to use technologies and collaborate with agricultural technology departments to provide farmers with training as well as disaster avoidance services.

Constraints and Suggestions Encountered by the Beneficiaries under Pradhan Mantri Fasal Bima Yojana in Tumkur District of Karnataka

The Pradhan Mantri Fasal Bima Yojna (PMFBY) is a crop-based insurance policy designed to help farmers who have suffered crop loss or damage and stabilizes farm income. In the year 2020-21, a study was conducted in the Tumkur district of Karnataka as district had highest number of insurance units (895) as compared to other districts of the Karnataka state. The findings of the study revealed that delay in getting the claim was the prime constraint faced by the beneficiaries with a highest percentage of 81.67 per cent and as ranked first followed by less compensation offered (80.00 per cent) and getting claims is a complicated procedure (76.67 per cent). With respect to suggestions given by the beneficiaries were before the start of the next season, the claim should be distributed with a percentage of 87.50 and ranked first, followed by organizing awareness programs for farmers regarding PMFBY (78.33 per cent) and representatives from financial institutions and policy makers should monitor and supervise the assessment (72.50 per cent). The study bought out a number of various constraints faced by the farmers related to Crop Insurance Schemes. As a result, concerned officers should approach the State Government and request that they make earnest efforts to pay the claim before the start of the following season as well as conduct more training and awareness programs.