Crop Insurance Scheme Development to Reduce The Negative Impact of Climate Change in Agricultural Land

Suryanto, Gravitiani and Evi, and J.J. Sarungu, (2012) Crop Insurance Scheme Development to Reduce The Negative Impact of Climate Change in Agricultural Land. .

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    This study is part of the main purpose to develop crop insurance scheme. Crop insurance scheme is an alternative policy to increase food security in Indonesia. The study focused on the agricultural sector that be categorized as highly vulnerable to climate change. Climate change has potentially to cause drought because dry season period was longer than usual and floods because level of rainfall is very high. The study will be devided into three phases. The initial phase of this study were: (i) identify hazard area to floods, drought and pest attack in Karesidenan Surakarta (ii) valuation of the economic impact of natural disasters on the decline in production and income of farmers. The research method used is quantitative research methods. Mapping of hazard of disaster areas was used Geographic Information System (GIS) and economic valuation losses with production loss approach as analysis tools. Factors that influence the decision to mitigate estimated by Contingent Valuation Method approach (CVM) approach. Sampling Method was used purposive sampling method, population of this research is the head of household at vulnerable of suffering losses due to climate change based on GIS mapping. The number of respondents that used in study is 373 households. The results data analysis showed that 128,154 hectares of agricultural land is potentially as hazard area. 41,704 hectares has identified as area of drought hazard. Most of areas in Surakarta, Sukoharjo and Sragen are three regions in Karesidenan Surakarta is more risky in floods than the other regions. Meanwhile, some part of areas in Wonogiri, Karanganyar, and Boyolali regencies have identified as hazard area of drought. Estimated loss is 208 billion IDR, it was calculated from the square of agricultural land that classified as vulnerable to floods, drought, and pests multiplied by the production loss per hectare. Factors that influence the decision of the respondent to mitigate disaster is the level of income, level of education, type of disaster, and region. As many as 94 percent of respondents are not willing to purchase the agricultural insurance as an alternative to mitigation. Rate of premiums that will be paid by respondents is less than fifty thousand rupiahs per planting period.

    Item Type: Article
    Subjects: H Social Sciences > HB Economic Theory
    Divisions: Fakultas Ekonomi
    Depositing User: Lynda Rahmawati
    Date Deposited: 17 Apr 2014 21:17
    Last Modified: 17 Apr 2014 21:17

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