FACTORS AFFECTING FARMERS WILLINGNES TO PAY (WTP) ON AGRICULTURAL INSURANCE PROGRAM IN WAJO DISTRICT, INDONESIA. Mirdah Aprilia Amir, Irham
1 Master Students of Agribusiness Management, Department of Agricultural Socioeconomics Faculty of Agriculture, Universitas Gadjah Mada
2 Department of Agricultural Socioeconomics Faculty of Agriculture, Universitas Gadjah Mada
Abstract
Agricultural insurance is a government program that aims to reduce the level of risk of farmers^ losses in rice farming. However, in the implementation process, the number of farmers participating in this program is still very far from the target set. This is presumably due to the influence of farmers^ willingness to pay on the agricultural insurance program. This study aims: (1) to determine the amount of Willingness to Pay (WTP) of farmers on the agricultural insurance premium and (2) to analyze the factors that influence the farmers^ Willingness to Pay (WTP) on the premium of agricultural insurance. This research was conducted in Wajo Regency, South Sulawesi. The study was conducted on 146 rice farmers in the April-September 2019 planting period using the cluster random sampling technique. To estimate the amount of WTP was used Contingent Valuation Method (CVM). The Ordinary Least Square (OLS) method was used to analyze the data. The results showed that the WTP value of farmers was IDR 43,119 per cropping (IDR 36,000/ha/cropping season). Income, ownership status, and claim status are factors that have a significant effect on the WTP value of agriculture insurance premiums.
