Farmers’ Willingness To Pay For Livestock Insurance Programs In Kulon Progo District

Tri Kurniaty(1*), Masyhuri Masyhuri(2), Jamhari Jamhari(3)

(1) Gadjah Mada University
(2) Department of Agricultural Socio-Economics, Faculty of Agriculture, Universitas Gadjah Mada
(3) Department of Agricultural Socio-Economics, Faculty of Agriculture, Universitas Gadjah Mada
(*) Corresponding Author


Livestock Insurance is one of the insurance products supported by the government with PT Jasindo as the organizer. Livestock insurance will provide the potential for cattle ranchers who can get risk threats such as cattle deaths due to illness, accidents, losses caused by theft, and deaths due to breeding. This study aims to determine the value of the willingness of farmers to pay the insurance and the factors that affect the willingness of farmers to pay insurance. This research was conducted from February to March 2020 in the Kulon Progo district. Location determination is done by purposive sampling based on data from the farmer following the insurance program. Primary data obtained from 53 farmers with the help of a questionnaire and analyzed by the method of contingency value (CVM) and multiple linear regression. The research shows the average value of willingness to pay insurance is IDR45,660 per head per year above the value of the insurance premium assessment. Factors that significantly influence a Farmer's Willingness to Pay (WTP) for the Insurance program are the variable number of family dependants and income, while the age, duration of raising, and education have no significant effect. Based on the value of the EWTP obtained, which is very low, the expectation of farmers is not to demand too low a price.

Full Text:



Amin, M. A., Abdullahi, G. A., Suryani, D., & Alias, R. (2014). Farmer's willingness to pay for crop insurance in northwest Selangor Integrated Agricultural Development Area (IADA), Malaysia. Journal of ISSAAS (International Society for Southeast Asian Agricultural Sciences), 20(2), 19–30.

Annisa, T. M., & Harini, R. (2017). Analisis Kesediaan Membayar (WTP) Untuk Mendukung Ekowisata Berkelanjutan Di Kawasan Wisata Gua Pindul, Kabupaten Gunungkidul. Jurnal Bumi Indonesia, 6(4), 228867.

Cao, Y., & Zhang, Y. (2011). Hog insurance adoption and suppliers’ discrimination: A bivariate probit model with partial observability.

Danso-Abbeam, G., Addai, K. N., & Ehiakpor, D. (2014). Willingness to pay for farm insurance by smallholder cocoa farmers in Ghana. Journal of Social Science for Policy Implications, 2(1), 163–183.

Enjolras, G., Capitanio, F., & Adinolfi, F. (2012). The demand for crop insurance: Combined approaches for France and Italy. Agricultural Economics Review, 13(389-2016–23488), 5–22.

Falola, A., Ayinde, O. E., & Agboola, B. O. (2013). Willingness to take agricultural insurance by cocoa farmers in Nigeria. International Journal of Food and Agricultural Economics (IJFAEC), 1(1128-2016–92004), 97–107.

Han, F., Yang, Z., Wang, H., & Xu, X. (2011). Estimating willingness to pay for environment conservation: a contingent valuation study of Kanas Nature Reserve, Xinjiang, China. Environmental Monitoring and Assessment, 180(1–4), 451–459.

Kumar, R. (2013). Crop Insurance-Tribulations And Prospects Of Farmers Concerning Nuzvid, Krishna District. International Journal of Marketing, Financial Services & Management Research-ISSN, 2277–3622.

Kwadzo, G. T. M., Kuwornu, J. K. M., & Amadu, I. S. B. (2013). Food Crop Farmers’ Willingness to Participate in Market-Based Crop Insurance Scheme: Evidence from Ghana. Research in Applied Economics, 5(1), 1.

Makatita, J. (2013). Hubungan Antara Karakteristik Peternak dengan Skala Usaha Pada Usaha Peternakan Kambing di Kecamatan Leihitu Kabupaten Maluku Tengah. Agrinimal, 3(2), 78–83.

Ministry of Agriculture, D. P. P. D. J. P. dan S. (2018). PEDOMAN BANTUAN PREMI ASURANSI USAHA TERNAK SAPI/KERBAU. 283–312.

Putra, B. E. (2019). Strategi Peningkatan Keikutsertaan Petani Pada Asuransi Usaha Tani Padi (AUTP) di Daerah Sentra Pertanian Padi Kabupaten Cianjur.

Ramdas, M., & Mohamed, B. (2014). Impacts of Tourism on Environmental Attributes, Environmental Literacy, and Willingness to Pay: A Conceptual and Theoretical Review. Procedia-Social and Behavioral Sciences, 144, 378–391.

Sadati, S. A., Ghobadi, F. R., Sadati, S. A., Mohamadi, Y., Sharifi, O., & Asakereh, A. (2010). Survey of effective factors on the adoption of crop insurance among farmers: A case study of Behbahan County. African Journal of Agricultural Research, 5(16), 2237–2242.

Sai, T., Yulian, W., & Xiaofeng, H. (2010). An Empirical Study of Agricultural Insurance—Evidence from China. Agriculture and Agricultural Science Procedia, 1, 62–66.

Singh, A. S., & Hlophe, N. M. (2017). Factors affecting adoption of livestock insurance : a case study of livestock farmers in Manzini Region, Swaziland. Research Journal of Agriculture and Forestry Sciences, 5(8), 6–14.

Sugiyono. (2015). Metode Penelitian Pendekatan Kuantitatif, Kualitatif, dan R&D. Alfabeta, Bandung.

Swatika Dewa K.S, Kumar, R., Manikmas, M. O. A., Sayaka, B., Kariyasa, K., Villa, L. M. M. De, Decena, F. L. C., & Concepcion, R. N. (n.d.). UNESCAP-CAPSA CAPSA Working Papers currently available : Training.


Article Metrics

Abstract views : 1555 | views : 1708


  • There are currently no refbacks.

Copyright (c) 2018 Agro Ekonomi

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

AGRO EKONOMI ISSN 0215-8787 (print) , ISSN 2541-1616 (online)  indexed by :

sinta worldcat 


View My Stats