Analysis of rice production trends and the effect of harvest failure on insured land area in Aceh Province

Abstract

Agricultural insurance is a risk transfer that can provide compensation due to farming losses so that the sustainability of farming can be guaranteed. Rice farming insurance (AUTP) is a pilot program or pilot project that has been implemented in Aceh Province since 2015. However, the realization of the insurance program is still very low from the target set. The central government coordinates with local governments to implement the AUTP program by issuing a policy of providing premium subsidies of 80 percent or IDR.144,000/Ha/MT of the total premium of IDR.180,000/Ha/MT. AUTP participants only pay a premium of 20% per hectare of land insured with an insured value of IDR.6,000,000/Ha with conditions damaged or failed in the event attack of the pest and natural disasters at least 75%. The purpose of this study is to see the effect of a simple regression analysis of the area of failed rice harvest on the area of land insured in Aceh Province. This study uses secondary data from 2010-2019. The results of this study via a simple regression analysis indicate that the effect of the area of rice harvest failure on the area of land insured in Aceh Province is not significantly affected.