Crop Insurance Performance in Japan: Some Preliminary Observations

This paper aims to inquire how agricultural insurance can be an effective and efficient coping mechanism to prevent the poorest in remote rural areas of East Asia and the Pacific from falling into the poverty trap when faced with natural disasters. Field research was conducted to examine upland and lowland farmers' experiences with agricultural insurance and program implementation by insurance providers in Japan and the Philippines. Secondary data such as online articles, journals, books, news and annual reports, and online websites of government insurance providers in the Philippines and Japan were collected. Primary data were analyzed using descriptive and cost and returns analyses. The results of the country case studies of the Philippines and Japan highlight the major differences between agricultural production and agricultural insurance systems. Agricultural insurance can be a standalone risk management tool for Japanese farmers because the Japanese agricultural insurance provider has sufficient capital from the premium payments it receives from its beneficiaries. In contrast, the main agricultural insurance provider in the Philippines has little capital due to the low premium payments it receives especially that only a few farmers sign up for its programs. For this reason, the company cannot make large compensation payments to its beneficiaries and cannot be used as a standalone risk management tool in the Philippines.

1981

In view of the overwhelming impact of agricultural risks on peasant economies, many governments have traditionally adopted various measures, often in an ad hoc manner, to help farmers partially meet the losses due to natural hazards. These measures often take the form of reduction of land rent and taxes, cancellation or postponement of loan repayments, and direct subsidies. There are several disadvantages with this practice. An important one is that farmers cannot expect assistance as a right, but only as a privilege, and as a consequence cannot take these possibilities fully into consideration in determining their courses of action (for example, choice of farming techniques or use of agricultural credit). Certainly, in the case of Japan, tenancy disputes over the rent reduction on the part of landlords during the depression years brought the final pressure on the government leading to the introduction of public crop insurance in 1939 (Yamauchi, p. 14-15). The advantages of all-risk...

Annual Review Resource Economics, 2022

Innovations in agricultural index insurance have raised expectations that the private sector can overcome shortcomings associated with more traditional indemnity-based products like multiperil crop insurance and strengthen agricultural risk management at scale across developing countries. This ar- ticle updates previous reviews on agricultural insurance but differs in that it goes beyond the prognosis that recent innovations can help make insurance more commercially viable. As such, it addresses two important challenges that have received limited attention. First, it distinguishes different types of farm households and recognizes that many are excluded from the insur- ance market, describing additional innovations that can help make insurance more accessible to these excluded groups. Second, it acknowledges that in- surance for catastrophic risks is unaffordable for most farmers and summa- rizes new developments in disaster assistance and safety net programs that can provide broader protection against these risks. The review concludes that cost-benefit analyses of subsidized insurance programs will be crucial for guiding public spending decisions.

The aim of this study was to assess the willingness of farmers to adopt crop insurance and the critical factors that influence the premium they are willing to contribute towards such a scheme. Two out of the eleven (11) agricultural operational areas in the Sunyani Municipality were selected purposively due to their dominance in maize and cassava production. Four (4) communities were randomly selected from each operational area through balloting and fifteen farmers were then selected from each community through the use of random numbers. A total of 120 farmers were selected from the Municipality for personal interviews to elicit primary information with the help of a structured questionnaire. A binary logistic regression model was used to identify the factors that influence farmers' willingness to adopt crop insurance as a risk mitigation strategy. A double logarithmic multiple regression model was employed to determine the factors that influence the premium farmers were willing to pay towards a crop insurance scheme. Evidence from the study indicates that majority (76%) of farmers were willing to adopt crop insurance; age of farmer, land tenure system practiced and educational level were found to be the key drivers of crop insurance uptake, ex ante. The study revealed that government subsidy would be required for such an insurance scheme since the premium farmers pledged to pay was quite low and likely to be uneconomical from the perspective of private insurers. It was revealed that on-farm income, farm Asian Economic and Financial Review journal homepage: http://aessweb.com/journal-detail.php?id=5002 Asian Economic and Financial Review, 2014, 4(3):341-354 342 size, land tenure, educational level and amount of savings by farmers significantly influenced the premium farmers pledged to pay towards a crop insurance scheme. The study recommended periodic training and education of farmers to improve their knowledge on crop insurance as a risk management tool and the need for farmers to save in order to enhance the uptake of crop insurance when it is introduced in the study area.

RePEc: Research Papers in Economics, 2017

Agricultural insurance is one of the risk management tools to insure farmers against losses. Two different rice insurance schemes has been developed in Thailand: a weather index insurance (WII) and a main season rice insurance scheme ("Top-up insurance"). Both WII and top-up insurance suffers from low insurance uptake because farmers lack of insurance knowledge and most farmers are small-scales who have low income that cannot afford insurance. Understanding farmers' attitudes towards agricultural insurance would help insurance stakeholders to develop insurance products that are in line with farmers' attitudes, increasing the demand.

Problems of AgriMarket, 2023

This review article is aimed at getting acquainted with the experience of developed countries in insuring the risks of agricultural producers. The creation of a reliable mechanism for their insurance protection is currently one of the aspects of ensuring food security of the republic and a special sphere of state interests. The purpose is to show common insurance practices and countries' policies in dealing with this issue. Methodsin the process of analyzing and evaluating the international level of state support for agricultural insurance, the author used the following research methods: content analysis, which allows to identify the main areas related to state financing of agricultural sector; on the basis of a systematic approach, the degree of state participation in insurance operations was determined; graphical interpretation made it possible to visualize this process on the basis of information received. Resultsthe article presents aspects of state investment of insurance premiums in agricultural sector. The author identifies and graphically displays three main categories of state assistance in agricultural insurance. The results of the review can be used to conduct research in all regions of the republic. Conclusionsworld experience shows that subsidizing insurance payments is the most effective way to support small and medium-sized businesses and ensure economic sustainability of the industry, reduce negative consequences, including loss of income in production of products associated with the onset of adverse natural events. A coordinated and strategic approach to managing the insurance market, government support and effective mitigation methods are important, while direct government reimbursements are ineffective in the long run and do not contribute to the prevention of risk situations.

The aim of this study was to assess the willingness of farmers to adopt crop insurance and the critical factors that influence the premium they are willing to contribute towards such a scheme. Two out of the eleven (11) agricultural operational areas in the Sunyani Municipality were selected purposively due to their dominance in maize and cassava production. Four (4) communities were randomly selected from each operational area through balloting and fifteen farmers were then selected from each community through the use of random numbers. A total of 120 farmers were selected from the Municipality for personal interviews to elicit primary information with the help of a structured questionnaire. A binary logistic regression model was used to identify the factors that influence farmers' willingness to adopt crop insurance as a risk mitigation strategy. A double logarithmic multiple regression model was employed to determine the factors that influence the premium farmers were willing to pay towards a crop insurance scheme. Evidence from the study indicates that majority (76%) of farmers were willing to adopt crop insurance; age of farmer, land tenure system practiced and educational level were found to be the key drivers of crop insurance uptake, ex ante. The study revealed that government subsidy would be required for such an insurance scheme since the premium farmers pledged to pay was quite low and likely to be uneconomical from the perspective of private insurers. It was revealed that on-farm income, farm Asian Economic and Financial Review journal homepage: http://aessweb.com/journal-detail.php?id=5002 Asian Economic and Financial Review, 2014, 4(3):341-354 342 size, land tenure, educational level and amount of savings by farmers significantly influenced the premium farmers pledged to pay towards a crop insurance scheme. The study recommended periodic training and education of farmers to improve their knowledge on crop insurance as a risk management tool and the need for farmers to save in order to enhance the uptake of crop insurance when it is introduced in the study area.

Southern Economic Journal

Asian Journal of Agricultural Extension, Economics & Sociology, 2021

This paper discusses the findings of the study in the area of crop insurance. Firstly it studied the problems faced under PMFBY, secondly examines prospects of given scheme. The study was conducted in six districts of Haryana namely, Kaithal, Bhiwani, Karnal, Hisar, Panipat and Fatehabad. The study showed the results of a survey of 240 farmers being carried in June 2018 to September, 2018. Constraints generally faced by the borrower farmers like delay in claim settlement (21.66%), inaccurate yield estimation (20.83%), inadequate implementation (20.00%), lack of awareness about the scheme and exclusion of a malicious damage, theft and grazed and destroyed by domestic animals etc. as 3.33 per cent as major constraints. Majority of non-borrower farmers faced constraints like claim paid for loss assessment (20.83%) as highest per cent, lack of faith in insurance system (19.17%) and inadequate implementation (16.67%).

Jurnal Manajemen dan Agribisnis, 2018

Rice farming is susceptible to failure due to several risks including natural disasters of flood and drought as well as pest and disease attacks. Risk mitigation such as agricultural insurance is required to cope with the risks. This study aims to portray rice production risks to failure and farmer's perception on the implementation of agricultural insurance in Bali province. Three regencies were selected purposively based on the area insured. A survey was conducted to 180 respondents who paid for the agricultural insurance (AUTP). Data were analyzed using descriptive qualitative analysis and chi-square test. Results of the research show that most rice farming risks to failure in Bali were blast and rat attacks. In terms of agricultural insurance implementation, all farmers accept the program as a mitigation risk to bridge rice farming failure. However, most farmers (85 %) asked for fully support of premium subsidy from the government while the rest agreed to pay for a-20 % of the premium. The result from the Chi-square test shows insignificant, implying that the distribution of farmers' perception towards full subsidy of agricultural insurance is indifferent across locations. Implication of the study noted that the government and insurer need to socialize the agricultural insurance program more intensively covering premium payment, coverage and claiming.