Behavior Analysis of Farmers in Tidal Swamp Land towards Agricultural Insurance

Abstract

In many studies, communication and social cognitive theories have been used to investigate people’s behaviors toward agricultural insurance programs resulting in varied conclusions on how and why people react to such programs. However, few of them have explicitly investigated the role of social cognitive theory in escalating insurance literacy levels on agriculture and cultural factors. Thus, the purpose of this study is to identify and analyze the behavioral factors of tidal swampland farmers in Barito Kuala Regency, South Kalimantan province, towards agricultural insurance in the perspective of analyzing farmers' knowledge of agricultural insurance products and determinants of community behavior. Under the instrumental case-study research design, the data were collected through interviews and Focus Group Discussion (FGDs) with 35 informants, consisting of the Head of the South Kalimantan Provincial Agriculture Service and the Barito Kuala District Agriculture Service, opinion leaders, academics, representatives of farmer groups, and farmers. Documentation data related to the implementation of the agricultural insurance program were used to complete the interview and FGDs data. The results of this study indicate that tidal swampland farmers are trapped in hoax information or negative issues related to Agricultural Insurance which makes them reluctant to participate in agricultural insurance. Farmers prefer to be resigned and surrender to the state of their agricultural land than to participate in agricultural insurance. Besides, farmers feel there is no point in participating in agricultural insurance, especially those who think the registration and insurance claim process is convoluted. Low insurance literacy is a key problem of the misinformation that is formed.