Abstract
Agricultural insurance is a risk transfer that can provide compensation due to farming losses so that the sustainability of farming can be guaranteed. Rice farming insurance (AUTP) is a pilot program or pilot project that has been implemented in Aceh Province since 2015. However, the realization of the insurance program is still very low from the target set. The central government coordinates with local governments to implement the AUTP program by issuing a policy of providing premium subsidies of 80 percent or IDR.144,000/Ha/MT of the total premium of IDR.180,000/Ha/MT. AUTP participants only pay a premium of 20% per hectare of land insured with an insured value of IDR.6,000,000/Ha with conditions damaged or failed in the event attack of the pest and natural disasters at least 75%. The purpose of this study is to see the effect of a simple regression analysis of the area of failed rice harvest on the area of land insured in Aceh Province. This study uses secondary data from 2010-2019. The results of this study via a simple regression analysis indicate that the effect of the area of rice harvest failure on the area of land insured in Aceh Province is not significantly affected.
Highlights
Aceh Province is one of the provinces in Indonesia which has extensive agricultural land for rice plants and is a center for rice production
The results of this study via a simple regression analysis indicate that the effect of the area of rice harvest failure on the area of land insured in Aceh Province is not significantly affected
The scope of this research is limited to rice production trends and projections in districts that are familiar with rice farming insurance (AUTP) in Aceh Province, and to analyze the effect of crop failure on the area of land insured in Aceh Province
Summary
Aceh Province is one of the provinces in Indonesia which has extensive agricultural land for rice plants and is a center for rice production. The total area of agricultural land in Aceh Province has decreased almost every year in the amount of rice production [3]. Rice farming is very vulnerable to climate change [3], [5]– [8]. This activity has a high level of dependence on climatic and weather conditions[9]-[10]. Rice farming will always be faced with quite high risks such as a reduction in harvested area and rice production [11]
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