Crop Insurance Research Articles

Voluntary agricultural insurance in the Republic of Kazakhstan based on the example of perennial plantings

The goal is to assess the potential of voluntary agricultural insurance in Kazakhstan using the example of perennial crops, determine demand and market readiness, and identify difficulties faced by agricultural producers and insurance companies. Methods - to solve the problems, content analysis method was used, which is aimed at studying problems related to state support of agro-industrial complex, data, statistical indicators were considered as information base, as well as review of literature on the topic, legislative acts and state policy in the field of agriculture and agricultural insurance, experience of economically developed countries were studied. The results show the possibility of the presence of agricultural risks and uncertainties with focus on insurance of perennial crops, prospects and barriers that impede its development in conditions of sharply continental climate, scarcity of water resources and unstable economy. Conclusions - voluntary insurance protection is an effective tool for mitigating financial losses in agricultural production in Kazakhstan. The author notes the need to increase financial resources and strengthen consulting work focused on understanding the benefits of agricultural insurance by business entities; creating effective mechanisms for distributing insurance payments and developing affordable insurance products that take into account the needs of the farmers. The most flexible insurance conditions, minimum list of documents for concluding an agreement, transparent methods for establishing the amount of insurance compensation and settling losses, increasing investment attractiveness, and using international experience taking into account the needs of Kazakhstani agricultural producers are required. The role of insurance services as one of the most common methods of reducing farmers' losses from natural and climatic changes, will increase.

CRISIS MITIGATION MECHANISM AND TRAINING NEED OF SUGARCANE GROWERS- AN EMPIRICAL STUDY

A study was conducted to find out the Crisis Mitigation Mechanisms and Training needs of Sugarcane growers in Southern Karnataka during 2022-23. Mandya and Mysore district of Karnataka were selected purposively for the study. Mandya and Maddur blocks in Mandya district and Nanjanagud and Narasipura blocks in Mysore district were selected randomly. Eight villages, two from each block and 120 sugarcane growers, 15 from each village, with minimum five years of experience in sugarcane cultivation were selected as respondents randomly. Blocks, villages and respondents are selected through multistage simple random sampling. Data were collected with structured interview schedule through physical interview method. Statistical tools like frequency, percentage, SD, CV, RBQ, equidistant method was used for data analysis. Food grains, fuel storage followed by fodder storage and relocating to safer places are usually adopted as mitigation measures. They are less aware about various crisis mitigation mechanism to be taken at individual level like contingency crop planning, crop insurance etc. 50 per cent of the sugarcane growers belongs to medium crisis mitigation mechanism adoption category. It was found that they were in need of trainings on IPM, INM, organic farming, entrepreneurship and community disaster management. Training about individual approaches like contingency crop plannings, crop insurance and community approaches of disaster for crisis management to be provided. 43.33 per cent of the sugarcane growers were in high need of training for crisis management. Price crisis was the major crisis faced by farmers followed by labour and finance crisis. Provision of strict law from government to stop delayed payment by factories and maintaining uniform price for sugarcane farmers to be introduced.

AWARENESS ABOUT CLIMATE CHANGE AMONG THE FARMER FRIENDS

Climate change is a burning issue in the global discussions on agriculture as it affects all other sectors of development. Agriculture system responds to changing climate through the process of adaptation. Awareness of farmers about the climate changes, its causes and consequences are the important aspect to deal with changing climatic conditions. Despite availability of adaptation measures like HYVs, mixed cropping, integrated farming, change in irrigation, crop insurance etc., farmers were not adapting them due to lack of knowledge and awareness about climate change. Among the different extension functionaries farmer friends are the key communicator for dissemination of agriculture technologies therefore awareness of them about the climate changes is very important. 300 farmer friends from Dahod District of Gujarat were selected randomly. Majority of the respondents were aware of the major indicators of climate change i.e. irregular rainfall and increase in temperature. In case of awareness about the causes of climate change it was deforestation, use of vehicles, while awareness about the major impact were found as human disease outbreak and livestock disease outbreak. Overall awareness about climate change high to very high. Majority of respondents had a very high level of risk perception in agriculture due to climate change.

Defoliation level and timing affect popcorn yield traits in the Midwestern United States

Popcorn [Zea mays (L.) var. Everta] is an important field crop in the Midwestern United States. However, hailstorms are a major threat to ensuring high yield because of their effects on leaf photosynthesis, pollination, and stalk lodging. A multi-state study spanning six site-years (2020–2023) was conducted in two locations (Ohio and Nebraska) to determine how defoliation intensity at different stages affects yield loss in popcorn and compare these losses with current values in the National Crop Insurance Service (NCIS) Corn Loss Instructions. At each location the study was conducted in a randomized complete block design with four replicates. The treatments consisted of the combination of four levels of leaf loss (25, 50, 75 and 100 % leaf blade area removal) imposed at five developmental stages: V8 (10-leaf), V13 (15-leaf), VT, R2, and R4. The evaluated traits were plant population, grain yield, stalk lodging, and 100-kernel weight. All evaluated traits were affected by defoliation, except plant population. The treatments 100 % defoliation at VT and R2 stages were the most damaging in terms of grain yield reduction, number of ears per plant and 100-kernel weight for both locations. In Ohio, the greatest stalk lodging was observed at 100 %-R2 and in Nebraska, at 75 %-VT. For both locations, the actual yield losses in the defoliated treatments were lower than values currently listed in the NCIS Popcorn Leaf Loss Chart. These results indicate leaf loss chart values should be updated to accurately reflect yield losses from popcorn defoliation events. This evaluation did not impose damage to stalks (e.g., bruising) or to plant whorls as may be expected in natural events. Future research should incorporate other forms of plant damage such as those described to provide a better emulation of hail damage.

A MODEL FOR DETERMINING PREMIUM RATES IN INDEXBASED CROP INSURANCE

The paper deals with index-based crop insurance as a tool for managing flood and drought risks in agriculture. We introduce a novel model for determining premium rates in index-based crop insurance which combines the loss cost method and the average yield method. The proposed model was applied to data related to the production of selected crops in Serbia to calculate unique premium rates for index-based insurance for cereals, industrial crops and fodder plants. The paper also outlines the prerequisites for index-based crop insurance to become technically, operationally, and financially feasible in Serbia. We propose the introduction of mandatory index-based crop insurance, along with necessary legislative amendments and subsidization of insurance premiums.

Research Survey on Role of Blockchain Technology in Agriculture

Blockchain is a decentralized ledger technology where all the data and information can be stored and shared. They allow accessibility for every network users rather than just a single server and admin. The information in the database can then be accessed and validated by several parties, increasing security and lowering the risk of corruption. Traceability is made possible by blockchain's ability to store and manage data. This feature is used to help develop and execute solutions for index-based crop insurance and intelligent farming. It is an important advance in the fields of modern agriculture. Food safety in agriculture is ensured by blockchain applications in crop certification, information systems, agro-trade, financing, and traceability of origin, among other areas. It offers a trustworthy source of information regarding contracts, inventories, and farm conditions in agriculture, an industry where obtaining such data is frequently exceedingly expensive. Because food traceability can be tracked via blockchain technology, reliable food supply chains and consumer-producer trust can be established. It makes it easier to employ data-driven technology to improve farming because it is a reliable method of storing data. Additionally, when combined with smart contracts, it enables prompt payments between parties that may be brought about by modifications to data that appear in the blockchain. The applications of blockchain technology from a theoretical and practical standpoint in smart farming, food supply chains, agricultural insurance, and agricultural product transactions. With numerous current initiatives in various food items and food-related difficulties, blockchain is a promising technology towards a transparent food supply chain. However, there are still many obstacles and hurdles that prevent its greater appeal among farmers and systems. Technical issues, education, legislation, and regulatory frameworks are all involved in these challenges. Key words: Agriculture, Blockchain, Supply chain, Farming, Traceability

An Analysis of Crop Insurance as an Adaptation Tool of Climate Vulnerability in Cauvery Delta Zone

An Analysis of Crop Insurance as an Adaptation Tool of Climate Vulnerability in Cauvery Delta Zone

South Carolina Soybean Research Widens Full Coverage Crop Insurance Window

South Carolina Soybean Research Widens Full Coverage Crop Insurance Window

Interviews with farmers from the US corn belt highlight opportunity for improved decision support systems and continued structural barriers to farmland diversification

Diversifying high-input, monocropped landscapes like the US Corn Belt would provide both economic and ecosystem service benefits to the agricultural landscape. Decision support systems (DSS) and digital agriculture could help farmers decide if diversification is suitable for their operation. However, adoption of DSS by farmers remains low, likely due to lack of farmer engagement before and during the DSS development process. This study aimed to better understand the tasks, tools, and people involved in implementing farmland diversification with the goal to inform design of agricultural DSS. Semi-structured interviews were conducted with 11 farmers who had diversified their corn/soybean cropland with government-supported conservation programs (e.g., CRP, wetlands) and alternative crops (e.g., small grains, pasture) in the past four years. Interview data was transcribed and then analyzed using affinity diagramming. Results show farmers needed DSS to layer multiple sources of data and observations over several years to identify field productivity trends and drivers; spatial orientation of practices to fit management and field constraints; matching operation goals to alternative practices; financial planning and market exploration; and information on promising emerging practices like subsidized pollinator habitat. However, the interviews also highlighted structural barriers to diversification that DSS cannot or can only partially address. These included social pressures; market access; crop insurance policy; and quality of relationships with governmental agencies. Results indicate better DSS design can empower individual farmers to diversify cropland, but structural interventions will be needed to successfully diversify the agricultural landscape and support economic and ecosystem health.

Farmers Perceptions towards Agricultural Insurance Schemes in Southern Rajasthan: The Case of National Agricultural Insurance Scheme (NAIS) and Weather Base Crop Insurance Scheme (WBCIS)

Crop insurance is an insurance prearrangement aiming at mitigate the financial losses suffered by the farmers due to damage of their crops due to various production risks beyond their control like natural fire, weather, floods, pests, diseases etc. Government of India started offering crop insurance in 1985, with the Comprehensive Crop Insurance Scheme. This encourages farmers to carry on with their productive efforts, which not only improves the welfare of the farmers but finally helps in stabilizing the agricultural output. In total majority of respondents, the insured loanee farmers 88 (88/150) (58.70 per cent) stated favourable attitude, while 35 (35/150) (23.30 per cent) could be found under less favourable category. The 27 (27/150) (18.00 per cent) farmers reported under highly favourable proportion. Statement wise attitude of insured loanee farmers in five-point continuum recorded most favourable attitude with mean per cent score 81.52, 78.17, 77.49 and 71.50 and placed at 1st, 2nd, 3rd and 4th respectively. This stated that the farmers can sustain natural calamities and compensation is available in time.

Comparative effects of two elicitors on the essential oil biosynthesis of simulated hail-damaged rose geranium (Pelargonium graveolens L’Hér. cv. ‘BOURBON’)

Extreme abiotic stress factors such as hail, defoliation, salinity, and moisture stress can affect the biosynthesis of essential oils. To mitigate this, most commercial farmers globally use agricultural crop insurance; however, this is not the case for most smallholder and emerging farmers in southern Africa, as agricultural insurance tends to be expensive when included in the production system. Therefore, this study aimed to investigate the comparative effects between two elicitors: abscisic acid (ABA) and methyl jasmonate (MeJA) on essential oil biosynthesis of simulated hail-damaged rose geranium (Pelargonium graveolens L’Hér.) as an alternative strategy to improve the essential oil biosynthesis following severe hail damage of rose geranium. The study was conducted in a 72 m2 temperature-controlled greenhouse, using a 4 x 2 factorial treatment design arranged in a randomized complete block design. Treatments comprised four levels of two elicitors at 75 µM (ABA), 150 μM (ABA), 10 mM (MeJA), and 20 mM (MeJA), applied in two different application periods (daily application for either 7 or 14 days). The simulation of hail damage was through 100% defoliation, with decapitation of the terminal buds. A significant interaction was observed between the elicitor treatment, and length of the period of application on essential oil yield (mass), where the highest yield was observed when MeJA (10 mM) was applied for seven consecutive days compared to the 14-day treatment. Geraniol esters were partially improved by the application of MeJA at 10 mM. Application of the two elicitors improved citronellol, geraniol, and linalool, regardless of the length of the period of application. The citronellol to geraniol ratio, a determining factor of essential oil quality, was 2.7:1 when MeJA was applied at 10 mM, significantly better than any application level of ABA. Therefore, it could be concluded that the application of MeJA at 10 mM may improve the essential oil biosynthesis of hail-damaged rose geranium plants compared to ABA at any level, and this may be adopted as a possible mitigating strategy by the emerging farmers and growers in southern Africa for improving the biosynthesis of rose geranium post hail damage. On the other hand, where growers are interested in higher contents of linalool and citronellol, ABA may be used at any level. Key words: Defoliation, essential oil, yield, phytohormone, citronellol, geraniol, linalool

What's Good for the Land is Good for the Farmer: Investigating Conservation‐Related Variables as Predictors of Farmers' Job Satisfaction☆

AbstractRising stress, mental health issues, and suicide rates among farmers highlight the need to understand factors influencing their job satisfaction. Farming presents distinct challenges with its unique mix of positive and negative characteristics. This study utilized dual‐factor theory to investigate how various factors, such as economic dynamics, farm financial health, stewardship views, experience with extreme weather, and climate change concerns, influence farmers' job satisfaction and dissatisfaction. Data from a 2020 survey of Iowa farmers were analyzed using ordinal logistic regression. Financial health, stewardship motivations, and perceived adequacy of conservation practices emerged as significant predictors of both job satisfaction and dissatisfaction. Farmers' extreme weather events experiences were positively associated with job satisfaction, indicating successful coping enhances contentment. Conversely, climate change concern was negatively associated with job satisfaction. As a revenue protection strategy, faith in crop insurance was negatively related to job dissatisfaction. In summary, besides the anticipated positive impact of farm financial health, the findings show that job satisfaction in farming is linked to stewardship motivations and perceived adequacy of conservation practices on the farm. The results suggest an opening for policies and programs aligning financial and conservation goals, potentially enhancing long‐term farmer well‐being and sustainable agricultural practices.

Unwelcomed guests: Impact of deer harvest on corn and soybean wildlife damage

While wildlife damages are a relatively small part of crop insurance claims in the United States, reported damages from wildlife are growing and producers are concerned this issue is getting worse. Wildlife agencies advocate for hunting as a control to wildlife damages to crops but to our knowledge, no study has econometrically explored if hunting could reduce crop damage. Therefore, we analyze if county-level white-tailed deer (Odocoileus virginianus) harvest and other factors like habitat and field fragmentation are associated with corn and soybean acres being indemnified due to wildlife damages in Tennessee. We estimate a fractional probit model using crop insurance data to measure crop damages and a county-level white-tailed deer harvest dataset. We find a higher coverage level of a policy increases the likelihood of both corn and soybean acres being indemnified due to wildlife damage. We also find white-tailed deer harvest during the period post-harvest in the previous crop year (November through January) slightly decreases the likelihood of a claim being made due to wildlife damage for corn but was not found to mitigate losses to soybeans. The whitetail hunting season appears to align better with corn production to reduce crop losses than with soybeans. This study will be useful for wildlife and crop agencies in state and federal governments to develop policies to more effectively utilize hunting to reduce crop insurance claims from wildlife damages.

Testing for distributional structural change with unknown breaks: application to pricing crop insurance contracts

Abstract Agriculture in developed countries is produced under heavily subsidized insurance. The pricing of these insurance contracts, termed premium rates, directly influences farmers profits, their financial solvency, and indirectly, global food security. Changing climate and technology have likely caused significant shifting of mass in crop yield distributions and, if so, has rendered some of the historical yield data irrelevant for estimating premium rates. Insurance is primarily interested in lower tail probabilities and as such the detection of structural change in tail probabilities or higher moments is of great concern for the efficacy of crop insurance programs. We propose a test for structural change with an unknown break(s) which has power against structural change in any moment and can be tailored to a specific range of the underlying distribution. Simulations demonstrate better finite sample performance relative to existing methods and reasonable performance at identifying the break. The asymptotic distribution is shown to follow the Kolmogorov distribution. Our proposed test finds structural change in most major U.S. field crop yields leading to significant premium rate differences. Results of an out-of-sample premium rating game indicate that incorporating structural change in crop yields leads to more accurate premium rates.

An Observational Study on Perception of Efficacy of Crop Insurance among the Farmers of a Community Development Block in the State of West Bengal

Crop insurance is a formal mechanism of risk management to farmers exposed to a similar type of risk in agricultural production. It is a means to protect the cultivators against financial loss on account of anticipated crop loss which might arise out of uncontrollable natural calamities such as natural fire, weather, floods, pests, diseases etc. In West Bengal, various crop insurance schemes have been implemented so far. The common aim of the schemes is to provide financial support to farmers in the event of crop failure and stabilize farm production and income of the farming community. This is the motivation behind the study. The study has been conducted among farmers of Hooghly district in West Bengal to understand their perception of efficacy of crop insurance schemes. Respondents include both insured and non-insured farmers. The mean age of the farmers with crop insurance was 43.18±16.13 years and the mean age of the ones without crop insurance was 44.22±18.07 years respectively (p=0.62). All respondents were males with full ownership of farms. The mean size of the farms was 5.95±3.28 bigha. A total number of 60 farmers were selected randomly out of which 30 farmers were with crop insurance and rest 30 were without crop insurance. Among the risk management strategies adopted for the destruction of crops, sale/ mortgage of land, sale of livestock and government relief were higher among non-insured farmers as compared to insured farmers (p>0.05).

Smart Contracts Based Automated Payouts Crop Insurance Platform

Smart Contracts Based Automated Payouts Crop Insurance Platform

Crop insurance, factor allocation, and farmers’ income: evidence from Chinese pear farmers

Crop insurance, as a crucial tool for agricultural risk management, holds significant importance in increasing farmers’ income. This study analyzed the intrinsic relationship and mechanism between crop insurance, factor allocation, and pear farmers’ income. Using field survey data from 1,337 pear farmers in Xixian and Weixian counties in China, we employed OLS regression models and mediation effect models to empirically investigate the direct and indirect impacts of crop insurance on pear farmers’ income. Additionally, we examined the moderating role of agricultural cooperatives and group heterogeneity. The research findings revealed the following: (1) Although crop insurance increases agricultural expenses, it mitigates income losses due to disasters, ultimately leading to a net increase in pear farmers’ income. (2) Crop insurance enhances agricultural labor and machinery inputs, and encourages pear farmers to adopt green production techniques, thereby boosting their income. (3) The beneficial impact of crop insurance on pear farmers’ income is even more pronounced when farmers are members of cooperatives. (4) Heterogeneity analysis showed that for pear farmers who make individual decisions and have smaller land areas, crop insurance can increase their income, while its impact on farmers who make group decisions or have larger land areas is not significant. In conclusion, this study proposes to promote the development of crop insurance, deepen factor market-oriented reforms, support and guide the development of cooperatives, and pay attention to the heterogeneity among different groups of farmers.

Crop Yield Estimation using Improved Salp Swarm Algorithm based Feature Selection

Crop yield estimation is the art of yield prediction before harvest and it is essential for planning and making conclusive agricultural policies. The forecasting of crop yield is essential in optimal nutrient management, crop insurance, crop market planning and harvest management. However, the crop yield estimation is considered as a challenging task because of huge amount of abundant information exists in the crop data. Therefore, an effective feature selection is required to be developed for removing the redundant attributes. In this research, an Improved Salp Swarm Algorithm (ISSA) based feature selection for an effective crop yield estimation. The Opposition Based Learning (OBL) and Local Search Algorithm (LSA) are incorporated in the ISSA’s initialization and exploitation phase for selecting optimum feature subset. The selected features from the ISSA are used to enhance the classification using Modified Long Short Term Memory (MLSTM) classifier. The performance of the ISSA-MLSTM is analyzed using accuracy, precision, recall, F-score, Nash-Sutcliffe Efficiency Coefficient (NSEC), Mean Absolute Error (MAE) and Root Mean Square Error (RMSE). The existing researches such as Ensemble approach and MLSTM are used to evaluate the ISSA-MLSTM. The accuracy of the ISSA-MLSTM is 99% that is high when compared to the MLSTM.

Determinants of Smallholder Farmers' Awareness of Crop Insurance in Kedah, Malaysia

Agriculture is a major source of income for humans and has become an agro-food commodity. However, this industry is vulnerable to a wide range of dangers, including climate change, natural disasters, illnesses, and pests. Crop insurance is not a new concept in advanced economies since it has been recognized as an efficient instrument for mitigating agricultural risks and encouraging farmers to employ modern technology and innovation. This research investigates the determinants of smallholder farmers' awareness of crop insurance in the agricultural landscape of Kedah, Malaysia. Therefore, this study examines the relationship between knowledge, risk attitude and farm size on the farmers' awareness of crop insurance. The study, based on a sample of 100 farmers, utilizes a non-probability sampling technique to collect data through structured questionnaires. The research employs reliability analysis, correlation analysis, and regression analysis to evaluate the raw data and uncover the factors influencing farmers' awareness of crop insurance. The study conclusion shows a strong correlation between farmers' knowledge levels and farm size as important indicators of crop insurance awareness. The analysis emphasizes how crucial it is to increase farmers' understanding through focused educational programs and customized awareness campaigns that take farm size dynamics into account. Policymakers and agricultural extension services can enable smallholder farmers to make well-informed decisions about using crop insurance as a strategy to manage agricultural risks and guarantee financial stability by making information and resources easily accessible.

Maximizing Marketing Efficiency: A Deep Dive Analysis into Castor crop in Namakkal District, Tamil Nadu, India

Castor is a vital industrial oilseed crop with a range of uses that have increased its global economic importance. The research study was conducted using primary data collected through personal interview using well-structured and pre-tested interview schedules with 125 castor farmers and 50 intermediaries were selected purposively random sampling method. The study revealed that marketing of castor, small farmers often sell to local traders due to transportation costs, while larger farmers transport directly to market for higher prices. Main markets for castor are Namakkal, Tiruchengode and Paramathi. The most efficient marketing channel for castor was found to be Producer, Village Trader and Processor i.e. Channel I followed by Producer, Wholesaler and Processor i.e. Channel II and subsequently, Producer and Processor i.e. Channel III. Major constraints identified include pests, labour shortages, monsoons failure, high input & labour costs and lack of market information. Fruitful suggestions to improve the marketing efficiency of agricultural commodities like castor, it is important to consider the benefits of value addition reaching farmers and customers. Dealing with insect pests is crucial, so farmers need access to resistant cultivars and pest management methods. Weather-based crop insurance can protect against production risks. The castor industry is hindered by a lack of infrastructure, so improvements in processing, value addition, grading, packaging, storage, and market infrastructure are necessary. Encouraging farmers to add value to castor could be a profitable strategy.