Agricultural insurance practices in Turkey, problems encountered in practice and seeking alternative models

The main objective of the study is to develop policy recommendations for the extensification of agricultural insurance in Turkey. In this context, Hayrabolu, Malkara and Süleymanpaşa districts of Tekirdağ province were selected as research areas. In the light of data obtained from the Ministry of Food, Agriculture and Livestock (MoFAL), a sampling frame of 16771 producers has been established. The Proportional Sampling method was used to calculate the number of producers to be interviewed. The Logistic Regression analysis was used to determine the factors affecting the producers' preference on having agricultural insurance through data obtained from the questionnaires conducted with 192 producers. The problems encountered by producers who have agricultural insurance and the reasons why non-insured producers have not, were analyzed with frequency distribution charts, and the vision of producers on innovative insurance products was revealed by scoring test. Information regarding the functioning of the agricultural insurance system was obtained from the MoFAL and the private insurance companies providing insurance services. The results of the analyses indicate that, the level of education of the producers in the research area, membership of Agricultural Credit Cooperative, canola cultivation, having tractor insurance and either the soil components are analyzed or not, are the factors affecting the decision of getting agricultural insurance. Problems encountered in the agricultural insurance system are: lack of of expert capacity with sufficient knowledge, inaccurate damage detection, rude behavior of the experts and high cost of insurance. In conclusion, income insurance is an alternative model for extensification of the agricultural insurance. The elimination of problems related to the experts expressed by the producers, clarification of some issues on the functioning of the insurance system and reducing the amount of insurance premiums are the main factors that will increase the number of producers having agricultural insurance. The state subsidy provided for insurance premiums should be maintained at minimum 50%, and even more, if the state resources are appropriate, increasing state support will increase the insurance rate.