Decision making of farmers participation in the rice farming insurance program in Asahan Regency

Abstract

One of the agricultural commodities that people need is rice. Rice is a rice-producing commodity that is the main food crop for the population. Agricultural insurance can be seasonal or annual. In seasonal agricultural insurance, the damage or loss is related to one growing season. Food crops are usually insured seasonally, as this can simplify loss assessment. This study aimed to analyze the factors influencing farmers' decisions to adopt insurance for rice paddy farming. Data collection techniques through observation and interviews using questionnaires. Sampling of farmers was done by simple random sampling method as many as 40 people. The analysis model used is the Binary Logistic Regression model. The results showed that the variables of age, production, education, farmer experience, land area, and farmer motivation together influence the level of participation of farmers in the insurance program of paddy rice farming. Partially, motivation has a positive and significant influence. In contrast, the factors of age, production, education, farmer experience, and land area do not have a substantial effect on the level of participation of farmers in the rice paddy farming insurance program in Asahaan District, North Sumatra Province.