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Unpredictable conditions of rice cultivation on fragile peatlands in Indonesia due to land-use changes would be an obstacle to agricultural food production and food security. This study aimed to determine the changes in land usage in Bengkulu, from prospective rice fields to oil palm plantations. The study was conducted from June to October 2020 at Air Manjuto irrigation paddy fields in Mukomuko Regency, Bengkulu Province. The analysis used satellite imagery with appropriate resolutions and multitemporal time from the United States Geological Survey's Landsat 5 Thematic Mapper (TM), Landsat 7 Enhanced Thematic Mapper + (ETM+), and Landsat 8 Operational Land Imager (OLI) collected from the years of 2000, 2008, and 2019. (USGS). The landscapes covering the Air Manjuto area were mostly marginal swampy peaty soils with ordo of Inceptisols, Histosols, and Entisols, which favor intensive rice cultivation. Oil palm plantation covers about 80% of the area, and in the last ten years, the cultivation by small-scale farmers increased sharply, about 8,219 ha or 68% from the previous decade, and no bush and bare land. In contrast, rice fields were an extraordinary loss of 6,819 ha or about 74% in the last decade, from 9,187 ha in 2008 to 2,308 ha in 2019. The loss of a huge area for rice cultivation at the Air Manjuto irrigation area threatens production in Bengkulu. The loss should be reversed through supporting infrastructure facilities and incentives, agrochemical subsidies, and agricultural insurances, and no more rice fields should be converted. [ABSTRACT FROM AUTHOR]

It is important for Indonesia as a country with agricultural bases to develop crop insurance. Until now, Indonesia has not had any insurance for horticultural crops other than for corn. This paper discusses horticultural multicrop insurance products based on revenue risk that can be triggered by low prices, low yields, or a combination of both. In designing multicrop insurance products, it is important to model the variability of revenue risk through the implementation of copula toward crop yield and price and to estimate indemnity of the revenue-based multicrop insurance. The analysis employed Gumbel and Clayton copulas to model the dependency structure between crop yield and price of multicrops. Each marginal variable was modeled by using the ARIMA model. The results showed that multicrop revenue insurance tends to reduce the price of agricultural insurance in Indonesia, and thus this program has the potential to have good acceptance in agricultural insurance. [ABSTRACT FROM AUTHOR]

Erratic circumstances of agricultural food cultivation on marginal peat soils in Indonesia could be a barrier for sustainable rice production and food security because of various determinants. Purpose of this study was to evaluate rice cultivation sustainability on peatlands and to find the significant attributes that degraded the sustainable agricultural activities. This research was conducted from June to September 2020 at two areas of marginal peat soils in Air Hitam irrigated paddy fields in Central Bengkulu Regency and Air Manjuto irrigated paddy fields in Mukomuko Regency, Bengkulu Province. Purposive and snowball sampling method was used to obtain 50 key informants. A scalable and normative rapid appraisal multidimensional scaling (MDS) was used to examine sustainable status based on five dimensions of ecology, economy, socio-culture, technology and institution as well as 53 attributes. Accuracy of MDS analysis was analyzed with goodness of fit and Monte Carlo analysis, while sensitive attributes was fitted with root mean square leverage analysis. Rice cultivation sustainability on marginal peat soils in Bengkulu under uncertain circumstance revealed less sustainable status with value 47.81. Determinants suppressed the sustainability status were various attributes of economic dimension and institutional and policies with values 40.95 and 32.48, respectively. Strengthening sustainability of rice cultivation on marginal peat soils in Bengkulu should initially be supported by government through increasing agricultural product price and more subsidized agricultural inputs. Facing uncertain circumstances causing harvesting failures, rice farmers proposed policy supports and facilities form agricultural insurances. [ABSTRACT FROM AUTHOR]

Purpose: Farmer exchange rate (FER) is the ratio between a farmer's income and expenditure and is also an indicator of farmers' welfare. There is little research regarding its use in risk modeling in crop insurance. This study seeks to propose a design for a household margin insurance scheme of the agricultural sector based on FER. Design/methodology/approach: This research employs various risk modeling concepts, i.e. value at risk, loss models and premium calculation, to construct the proposed model. The standard linear, static and time-varying copula models are used to identify the dependency between variables involved in calculating FER. Findings: First, FER can be considered as the primary variable for risk modeling in agricultural household margin insurance because it demonstrates farmers' financial ability. Second, temporal dependence estimated using the time-varying copula can minimize errors, reduce the premium rate and result in a tighter guarantee's level of security. Originality/value: This research extends the previous similar studies related to the use of index ratio in margin insurance loss modeling. Its authenticity is in the use of FER, which represents the farmers' trading capability. FER determines farmers' losses by considering two aspects: the farmers' income rate and their ability to fulfill their life and farming needs. Also, originality exists in the use of the time-varying copulas in identifying the dependence of the indices involved in calculating FER. [ABSTRACT FROM AUTHOR]

The government is helping to strive for farm protection in the form of agricultural insurance aimed at addressing farmers' losses, as stated in Law Number 19 of 2013 concerning farmer protection and empowerment, which has been followed up with the issuance of the Minister of Agriculture Regulation No. 40 of 2015. Agricultural insurance is a risk transfer can provide compensation due to loss of farming so that the sustainability of farming can be guaranteed. This research was conducted in Gapoktan Mitra Tani, Citemu Village, Mundu District, Cirebon Regency. Conducted in November 2019 until June 2020. Research was conducted to find out (1) to find out farmers' perceptions on rice farm insurance program plans, (2) to find out farmers' perceptions of the implementation of rice farm insurance programs, (3) to determine farmers' perceptions of the impact of the rice farm insurance program in Gapoktan Mitra Tani Usaha, Citemu Village, Mundu District, Cirebon Regency. The method that used in this research is a quantitative method with a survey method and a case study approach. The data that used in this study are primary data and secondary data. Primary data were obtained from the results of direct interviews with Perception farmers, interview techniques were guided by questionnaires, secondary data were obtained from literature studies and from related agencies. The results of the study show that: (1) farmers' perceptions of the plan rice farm insurance program (AUTP) in Gapoktan Mitra Tani are very good, (2) farmers' perceptions of the implementation of the rice farm insurance program (AUTP) are good, and (3) farmers' perceptions of the impact of the rice farm insurance program (AUTP) in Gapoktan Mitra Tani, Citemu Village, Mundu District, Cirebon Regency is good. [ABSTRACT FROM AUTHOR]

Agricultural insurance in Indonesia is focused specifically on rice farming and is locally known as Asuransi Usahatani Padi (AUTP). To encourage farmer participation, the government subsidises farmers' cost of insurance (premium) by 80%. Despite high subsidy, AUTP is still unable to reach the coverage target. The objectives of this study are to investigate farmers' Risk Aversion Level (RAL), its influence on farmers' decision to participate in AUTP, and the effect of farmers' participation in AUTP on their income. The result of this study can contribute to enriching agriculture insurance literature from the point of view of developing countries and catalyse other studies on this matter especially in Indonesia. The analysis methods used in this study were multiple pricelist designs and propensity score matching with a logistic regression model. 130 farmers were interviewed. The results showed that farmers tend to have a high level of risk aversion (82.3% of farmers insure almost all of their land). RAL has a significant effect on farmers' decision to purchase AUTP (< 0.01). A positive value of Average Treatment on the Treated (ATT) indicated that participation in AUTP has a positive impact on farmers' income. AUTP is able to absorb production risks and encourage use of high input in farming. [ABSTRACT FROM AUTHOR]