Rice insurance in farmers' awareness of risk-management and its loss covering effect
1996
Hongo, T. (Hokkaido Univ., Sapporo (Japan). Faculty of Agriculture) | Shiga, E.
The 1993 rice crop was a failure. There are various uncertainties in paddy farm management. Natural calamities are inevitable and have an enormous affect on management strategies. Thus, it is essential for paddy farmers to take countermeasures to meet this kind of risk. The purpose of this paper is to clarify the characteristics of paddy farmer's risk-management. There are many measures to deal with for each aspect of a calamity - before, during the after its outbreak - but this paper will focus on Rice Insurance. In this paper, we will first clarify the need for a Rice Insurance system which is compulsory by using the results of a questionnaire sent to the farmer in the districts. Then we will examine what Rice Insurance means to the farmers when they consider risk-management, and the relationship that exists between it and other countermeasures. The results of the questionnaire point out that under the existing system the intention to apply for the insurance is up to 80% because of the need for insurance. It became clear, however, that it is not motivated by tolerance for calamity. It is a complementary relationship between Rice Insurance and the other countermeasures
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