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Go Back       Himalayan Journal of Agriculture | Volume :3 Issue:4 | Aug. 10, 2022
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DOI : 10.47310/Hja.2022.v03i04.008       Download PDF       HTML       XML

Farmers' Perceptions of the Rice Business Insurance Program (AUTP) in Sidoarjo Regency


Nawan Djumadijo, Teguh Soedarto*, Nuriah Yuliati


Master of Agribusiness Study Program, Faculty of Agriculture, UPN Veterans East Java, Jl. Rungkut Madya No. 1 Mountain Anyar, Gunung Anyar District, Surabaya East Java City, Indonesia, 60294


*Corresponding Author

Teguh Soedarto


Article History

Received: 20.07.2022

Accepted: 30.07.2022

Published: 10.08.2022


Abstract: Farmers' perceptions of the AUTP program are important to achieve the success of this program, with good perceptions and supported by active participation, agricultural insurance as a guarantor of the risk of farming failure for farmers will run accordingly, so that the purpose of agricultural insurance will be achieved. This study aims to analyze the factors that influence farmers' perceptions, analyze farmers' perceptions of the Rice Farming Insurance program (AUTP), analyze farmers' expectations on the Rice Farming Insurance program (AUTP) in Sidoarjo Regency. The research location was chosen purposively in Sidoarjo Regency. There are many farmers in the area who follow and have experienced rice farming insurance (AUTP) and also this area is often flooded due to the lowlands. data from the Food and Agriculture Service of Sidoarjo Regency, farmers who have these criteria are in the districts of Balongbendo, Tulangan, Taman, Tanggulangin and Candi. The total population is 131 farmers, so the number of samples is 33 people. The analysis in this study uses descriptive analysis, regression and Likert scale. The results of the study are that 1. Simultaneously the influence of the variables of age, education, land area, length of farming and AUTP knowledge is real at the 95% level, a good perception of the Rice Farming Insurance program (AUTP) means that farmers accept the existence of the AUTP program and have a good view of which is good for the AUTP program in Sidoarjo Regency. Expectations for the Rice Farming Insurance (AUTP) program in Sidoarjo Regency are the most expected, namely expecting larger insurance claims, continuing AUTP, ongoing subsidies, additional quotas for bird pests entering claims, fixed premiums and uncomplicated procedures.


Keywords: Perception, Farm Insurance, Rice.


INTRODUCTION

Insurance agriculture in Indonesia is still focused on plant rice. This program known with Insurance farming Abbreviated rice _ with AUTP. AUTP has applied since 2015 but _ implementation still limited on region pilot a total of 17 provinces throughout Indonesia. AUTP realization data as of December 2016 shows that the AUTP program has followed as much as 606,491.72 hectares rice field with premium self-subsistent as big as IDR 21.8 billion. Number the only reach about 60% of the target. Whereas if compared with whole large land rice fields in Indonesia which reaches 4,819,525 hectares, insured land _ new reached 12.5 percent only (Ministry of Agriculture, 2016). Insurance farming Rice (AUTP) is a wrong one program created by government that aims for protect farmer paddy from threat risk fail harvest and if occur loss so farmer will get guarantee change make a loss from company insurance so that you can farming on season plant next , via State - Owned Enterprises , namely PT. Insurance Jasa Indonesia (Jasindo) which is official chosen by Authority Service Finance for Becomes executor insurance agriculture based on Article 38 of Law no. 19/2013 about protection and empowerment farmers (Legita, 2017).


Perception farmer to the AUTP program is Thing important for reach the success of this program, with good perception _ and supported participation active, then insurance agriculture as guarantor risk failure farming for farmer will walk in accordance with what it should be, so destination from existence insurance agriculture will _ achieved. Besides that, the more good perception farmer against AUTP, will open opportunity for development and continuity from the program. On the other hand, if perception farmer against AUTP no good so farmer the will difficult participate in AUTP which resulted in this program no will reach goal and no sustainable. Perception farmer against certain programs is base or base main for emergence willingness for follow involved and play a role active in every activities of the program (Chanafi, A. et al., 2015). Meaning positive or negative as results perception somebody to the program will Becomes booster or blocker for him for play a role in its activities. Results study previously (Moko, D. 2015) proved that that there is influence perception farmer to opt-in in the insurance program farming rice.


Perception is opinion or view, understanding and interpretation somebody about something informed object _ to him, especially how is that person connect information the with herself alone and environment where somebody are (Schiffman, L. & Kanuk, L. 2015). If somebody have good perception _ about a program, of course that person will To do directions that have been given to him, as a result this program will walk in accordance with what to expect by government so that destination of this program could achieved and the other way around (Adam, M. M. 2016).


The existence of the AUTP program is expected capable help farmer paddy with make farmer also independent no only depend on programs that are help so the AUTP program too capable realize independence farmer. So that farmer capable see opportunity profitable with follow as well as in scheme insurance and make it as opportunity for help working capital requirement on season planting next . Regency Sidoarjo this Becomes area study with consideration because they have implemented the AUTP program for approximately 5 years and have felt the benefits of the insurance program farming rice, so researcher want to research in the area the for getting data about perception and the response farmer.


The AUTP program in Sidoarjo Regency began to be socialized in mid-2015 and in 2016 registration for the AUTP program participants was opened. With continuous socialization by the Food and Agriculture Office of Sidoarjo Regency about the importance of the rice farming insurance program for farmers, in 2017 there has been an increase in AUTP program participants. The AUTP program in Sidoarjo Regency from 2016 to 2020 experienced an increase in both the number of participants and the area of land. In 2016 the number of farmers who participated in AUTP was still very small because at that time not many farmers were aware of the existence of agricultural insurance and farmers' perceptions of insurance in general responded negatively, thus affecting agricultural insurance. The existence of continuous socialization by the Food and Agriculture Office of Sidoarjo Regency can provide insight to farmers about the importance of agricultural insurance in the cultivation of agriculture, especially rice farmers. In 2018 the number of participants and the area of land covered by agricultural insurance began to increase, from 83 people to 247 and the land area from 41.72 Ha to 100.62 Ha. Significant developments were found in 2020, where farmers who participated in the AUTP program reached 646 farmers with a land area of 268.82 hectares. This shows that farmers have started to know a lot about AUTP and from 646 registered farmers, there are farmers who get AUTP benefits from submitting claims due to crop failure covering an area of 45.86 hectares. This can reduce the burden on farmers due to loss of crop yields, so that farmers can replant their agricultural land. So that research on risk analysis is important to be carried out in order to determine appropriate farming risk management actions for farmers. This study aims to analyze the factors that influence farmers' perceptions, analyze farmers' perceptions of the Rice Farming Insurance program (AUTP), analyze farmers' expectations on the Rice Farming Insurance program (AUTP) in Sidoarjo Regency.


RESEARCH METHODS:

Location study chosen purposively with _ by on purpose based on consideration because farmer in the area it has followed insurance farming rice. The population in this study are farmers who have become AUTP participants and have benefited from claims in 2020. Based on data from the Food and Agriculture Office of Sidoarjo Regency, farmers who have these criteria are in the districts of Balongbendo, Tulangan, Taman, Tanggulangin and Candi. The total population is 131 farmers, so the number of samples is 33 people.



Where:

N = population

N = sample

e = error


Analysis to determine the factors that influence farmers' perceptions of the AUTP program using multiple linear regression analysis. Linear regression analysis aims to determine the effect of the independent variable on the dependent variable. Data processing using SPSS program. The independent variables in this study are X1 (Age), X2 (Education), X3 (Land Area), X4 (Long of Business) and X5 (AUTP knowledge). The following is the form of the regression equation:


Y = 1 1 + 2 2 + 3 3 + 4 4 + 5 5 + е ............. (1)


Information:

Y = Farmer's Perception of AUTP

1 = Regression coefficient of variable X1 (age)

X1 = Age (years)

2 = Regression coefficient of variable X2 (Education)

X2 = Education (years)

3 = Regression coefficient of variable X3 (land area)

X3 = land area (Hectares)

4 = Regression coefficient of variable X4 (long farming)

X4 = Length of farming (years)

5 = Regression coefficient of the variable 5 (Revenue)

5 = Income (rupiah)

e = Standard error


In measuring farmers' perceptions of AUTP, farmers were given questions through a questionnaire, namely a total of 20 questions with a total of 33 respondents. Each answer is associated with a form of statement or attitude support expressed in words. By calculating the score as follows:


Total Score of Each Criterion : Score Achievement (3,2,1) x Number of Respondents........(2)

Total Score : Total Score of Each Criteria. ...............................(3)

Average Total Score : Total Score / Number of Respondents...........................(4)


Determination of the level of perception is grouped by quantitative descriptive analysis into five categories, namely very bad, bad, not good, good and very good, and categorized based on intervals. According to (Mangkuatmojo, S. 1997) the interval value can be obtained from the following formula:


Highest score – Lowest score

𝐼𝑛𝑡𝑒𝑟𝑣𝑎𝑙 (𝑖) =

𝛴category (c)


After the interval (i) and category boundary (c) are known, the next step is to create classes to classify the level of farmers' perceptions of the Rice Farming Insurance program in Sidoarjo Regency.


Analysis of farmers' expectations in facing rice farming insurance is known by using descriptive analysis. This analysis describes the hopes or desires of rice farmers in facing rice farming insurance (AUTP). Respondents described expectations that could be done to overcome the existing rice farming insurance (AUTP) efficiently and effectively.


RESULTS AND DISCUSSION:

  • Factors Affecting Farmers' Perceptions of the Farm Insurance Program (AUTP) in Sidoarjo Regency:

The data used in this analysis is primary data where the independent variables are age, education, land area, length of farming and AUTP knowledge. From the independent variables, it will be seen how much influence the perception of the AUTP program has (the dependent variable), then the regression results obtained are as follows:


Table 1: Results of Analysis of Factors Affecting Farmers' Perceptions of the Rice Farming Insurance Program (AUTP)

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1 (Constant)

Age

Education

Land area

Long time farming

AUTP knowledge

-1,298

.030

-.813

-.014

.104

80.255

10,924

.134

1.411

1,288

.056

4.149


.013

-.033

.000

.089

.980

-119

.227

-.576

-.011

1.869

19,342

.906

.823

.569

.992

.073

.000

Source: Primary data analysis processed by SPSS, 2022


Based on the table obtained the following regression equation:

Y= 1.298 + 0.030 X1 – 0.813 X2 – 0.014 X3 – 0.104 X4 + 80.255 X5

Where:

Y = Farmers' Perceptions of the Farm Insurance Program (AUTP)

X1 = Age (Years)

X2 = Education (Years)

X3 = Land Area (Ha)

X4 = Length of Farming (Years)

X5 = AUTP Knowledge


The coefficient of determination (R2) essentially measures how far the model's ability to explain variations in the dependent variable is. The coefficient of determination is a test used to test the effect between independent variables on the dependent variable together. The magnitude of the coefficient of determination from 0 to 1. The closer to zero the magnitude of the coefficient of determination of a regression equation, the smaller the influence of the independent variable. Conversely, the closer to one, the greater the influence of all independent variables on the dependent variable.


Table 2: Results of the Coefficient of Determination

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Durbin-Watson

1

.974

.948

.936

5.03131

1.079

Source: Primary data analysis processed by SPSS, 2021


From the model, the coefficient of determination (R2) is 0.948. This shows that 94.8% of the variation in farmer perception variables can be explained by variables of age, education, land area, length of farming, AUTP knowledge while the remaining 5.2% is explained by other variables not included in the model.



F test is a test simultaneously (simultaneously) the significance of the effect of changes in the independent variable on the dependent variable. This means that the variables of age, education, land area, length of farming, AUTP knowledge are simultaneously tested whether they have significance or not.

Table 3: Test Results – F

ANOVA

Model

Sum of Squares

df

Mean Square

F

Sig.

  1. Regression

11941,714

6

1990.286

78,624

.000

  1. Residual

658.165

26

25,314

  1. Total

12599,879

32


Source: Primary data analysis processed by SPSS, 2021


Simultaneously, the effect of the variables of age, education, land area, length of farming and knowledge of AUTP was significant at the 95% level. This can be seen from the results of the analysis, obtained F - count = 78.624 > F - table = 2.51 with a significance value (0.000 < 0.05). This shows that H0 is rejected and H1 is accepted, which means that the independent variables of age, education, land area, length of farming and AUTP knowledge have a significant effect on farmers' perceptions of the rice farming insurance program.


  • Farmers' Perceptions of the Farm Insurance Program (AUTP) in Sidoarjo Regency:

The Rice Farming Insurance Program (AUTP) is an effort to protect farming by the government to overcome farmers' losses in doing farming, especially for rice commodities. The AUTP program was introduced to farmers in Sidoarjo Regency since the end of 2015. In order for this program to run well, of course, the participants of the AUTP program, namely farmers, are expected to have a good perception as well. Farmers' perceptions of Rice Farming Insurance (AUTP) in Sidoarjo Regency are shown in Table 4.

Table 4: Obtaining Farmers' Perception Scores of Each Variable and Overall

No

Type Aspects of Social Conditions

Score

Category Perception

1

AUTP Socialization

16.09

Well

2

AUTP Police

14.90

Well

3

AUTP Premium

14.30

Well

4

AUTP Claim

13.48

Neutral

5

Benefits and Potential of AUTP

15.60

Well


Amount Whole

74.37

Well

Source: Primary Data Analysis, 2021


In general, farmers' perceptions of the AUTP program in Sidoarjo Regency are in the good category with an overall perception score of 74.37. The results of this study are in accordance with and strengthen the previous research conducted by Foni Legita in 2017, where the research obtained the level of perception of farmers belonging to the high category with an average overall perception score of 2.51 from a score range of 1.00-3, 00.


The socialization variables observed in this study were related to the provision of information, the benefits of socialization and the frequency of socialization carried out to provide knowledge to farmers about the AUTP program. In the socialization variable, to determine respondents' perceptions of the AUTP program, there are four indicators. Overall, farmers' perceptions of AUTP socialization are categorized as good with an average total score of 16.09 so it can be said that according to farmers' view, the implementation of AUTP socialization in Sidoarjo Regency has been carried out well. In addition, indicators that need to be considered in the socialization variable are the frequency of AUTP socialization based on the findings of the research that has been done, farmers are not satisfied with the frequency of socialization carried out, they want socialization to be given every time they enter a new planting season.


In the AUTP policy variable, to find out respondents' perceptions of the AUTP program, there are four indicators of the statements submitted. Overall, farmers' perceptions of the AUTP policy are categorized as good with an average total score of 14.09 so it can be said that according to the farmers' view, the implementation of the AUTP policy in Sidoarjo Regency has been carried out well. In the policy variable, there are several indicators that need to be considered, namely from the receipt of the AUTP policy, where not all AUTP participants receive the policy as proof that they have been registered as AUTP participants. The policy is usually only held by the head of the farmer group, this can also be due to the lack of information provided by extension workers and the lack of information received by farmers regarding the AUTP policy, so that many farmers do not understand the use of the policy.


The premium variable with a score of 14.30 and falls into the good category, this is because the AUTP premium is in accordance with the ability to pay and does not burden farmers, then the premium assistance subsidy provided by the government is very helpful for farmers from the economic side, the AUTP premium paid is in accordance with benefits received by farmers. There is one indicator that needs to be considered in the premium variable, which is related to the willingness to pay premiums if there is no longer premium subsidy assistance from the government, this is because some farmers feel burdened if they have to pay a premium of Rp 180,000/Ha/MT.


Farmers' perceptions of AUTP claims are categorized as neutral with an average total score of 13.48 so it can be said that according to farmers' views, the implementation of AUTP claims in the Regency still needs to be improved. The claim process, which should take approximately 1 month to complete, is often delayed, so that the beneficiaries of claim funds for replanting after crop failure are hampered.


Farmers' perceptions of the benefits and potential of AUTP are categorized as good with an average total score of 15.60 so that it can be said that according to the farmer's view, the implementation of the benefits and potential of AUTP in Sidoarjo Regency has been carried out well. In the benefits and potential variables, there are several indicators that need to be considered, such as the benefits and potential of AUTP to make it easier to access financing sources. Respondent farmers stated that they did not obtain information about the benefits and potential of AUTP in terms of making it easier to access sources of financing, so they did not know and had never tried to implement the benefits and potential of AUTP.


  • Farmers' Expectations of the Farm Insurance Program (AUTP) in Sidoarjo Kabupaten:

According to Erevelles and Leavitt (Fandy, T., & Chandra, G. 2016) expectations are consumer beliefs that a product has certain desired attributes. In this case, farmers have some expectations of the Rice Farming Insurance (AUTP) program in Sidoarjo Regency so that with the expectations and understanding of farmers' perceptions, they can improve the performance of the Rice Farming Insurance (AUTP) program in Sidoarjo Regency.

Table 5: Farmers' Expectations of AUTP in Sidoarjo Kabupaten

Information

Number of Respondents (persons)

Percentage (%)

Big Claim

11

34.00

Running Subsidy

8

24.00

AUTP Continues

5

15.00

Quota Addition

4

12.00

Pest Birds Enter Claim

3

9.00

Uncomplicated Procedure

2

6.00

Total

33

100

Source: Primary data analysis, 2022


The expectations of farmers for the Rice Farming Insurance (AUTP) program in Sidoarjo Regency are the most expected, namely:

  • farmers want a higher claim value,

  • AUTP premium subsidies continue to run, and

  • the AUTP program continues.


Based on the results of interviews with respondent farmers who stated that there was a higher claim value because the amount of AUTP's claims so far was only sufficient to meet the needs of production facilities so that they could not fulfill other needs that should have been obtained from the harvest. The existence of this AUTP program is very helpful for farmers in overcoming crop failure, but the premium amount is Rp. 180,000, - per planting season is considered burdensome for farmers, so they hope that the premium subsidy of 80% will still be given. Because the benefits of the AUTP program are needed by farmers, they also hope that the AUTP program will continue. The large loss of crop yields due to bird attacks is also very detrimental to farmers so that there is not enough capital to cover the need for replanting and their basic needs. Farmers hope that birds are also included in one of the types of pests that attack rice plants so that their claims can be submitted. Besides, it is hoped that there will be a system or procedure that makes it easier for farmers to register and process AUTP claims.

Farmers' expectations of AUTP are important to achieve the success of this program, with a good perception and supported by active participation, agricultural insurance as a guarantor of the risk of farming failure for farmers will run as it should, so that the purpose of agricultural insurance will be achieved . In addition, the better the farmers' perception of AUTP, will open opportunities for the development and sustainability of AUTP. On the other hand, if farmers' expectations for AUTP are not good, they will find it difficult to participate in AUTP which results in this program not achieving its goals and being unsustainable. Based on the research results obtained, farmers have good hopes or expectations for the AUTP program, so it is hoped that farmers will also have an active participation to support the sustainability of the AUTP program in the future.


CONCLUSION:

Based on study Perception Farmer to the Insurance Program farming Rice (AUTP) in Kabupaten Sidoarjo who has conducted so could conclude that:

  • Simultaneously, the effect of the variables of age, education, land area, length of farming and knowledge of AUTP was significant at the 95% level. Partially only the AUTP knowledge variable had a significant effect on the perception of the rice farming insurance program (AUTP), while age, education, length of farming, land area had no significant effect.

  • Farmers in Sidoarjo Regency have a good perception of the Rice Farming Insurance program, meaning that farmers accept the existence of the program well. There are four perception variables that fall into the good category which indicates that the farmer's view of these variables is good, namely the socialization variable, the policy, the premium and the AUTP benefit/potential variable. While the claim variable is in the neutral category which indicates that the AUTP claim process needs improvements in its implementation.

  • Farmers' expectations for the Rice Farming Insurance program in Sidoarjo Regency are the most expected, namely the existence of a larger insurance claim value, subsidies remain and the AUTP program continues


BIBLIOGRAPHY:

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  2. Chanafi, A., Fauzi, A., & Sunarti, S. (2015). The Influence of Public Perceptions on the Implementation of Corporate Social Responsibility (CSR) and Its Impact on Corporate Image (Survey of the Community Around PT. Greenfields Indonesia, which resides in RW. 02 Dusun Maduarjo, Babadan Village, Ngajum District, Malang Regency. Jurnal Administrasi Bisnis (JAB), 3(1), 1–7.

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  5. Legita, (2017). Farmers' Perceptions of the Rice Farming Insurance Program (AUTP) in North Pariaman District, Pariaman City. Thesis. Andalas University Faculty of Agriculture. Padang.

  6. Mangkuatmojo, S. (1997). Introduction to Statistics. Jakarta: Rineka Cipta.

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