The Impact of Rice Farm Insurance on The Income of Farmers In Indonesia
The fluctuation of rice production in Indonesia over the last 5 years shows a downward trend due to a decrease in land area and increase risks. A government's effort to overcome the risks of rice farming is to establish rice farming insurance (AUTP). This research aims to analyze the factors that influence farmers' decisions to join rice farming insurance (AUTP) and how the impact of rice farming insurance on farming income in Indonesia. The data used was secondary data from the survey results from the Central Bureau of Statistics (BPS) in 2018. The number of samples was 470 farmers, consisting of 122 farmers who joined rice farming insurance and 358 farmers who did not take rice farming insurance. Data were analyzed using logistic regression and propensity score matching (PSM) methods. The results show that the variables of education level, participation in socialization, perceptions of decreased production, and production significantly influenced farmers' decisions to join rice farming insurance. The impact of insurance on farm income shows that the average farm income of farmers who follow rice farming insurance is higher than farmers who did not join rice farming insurance. Therefore, the government continued to encourage the implementation of the rice farming insurance program to increase the level of farmer participation and sustainability of the AUTP program.
Keywords: income, participation rate, rice farming insurance, risk
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).