Farmers in Pangandaran Experience the Benefits of Agricultural Insurance

Suara.com – A number of farmers in Pangandaran Regency, West Java have benefited from the Rice Farming Business Insurance (AUTP) or agricultural insurance. The coverage was given because they experienced crop failure due to climate change.

Minister of Agriculture Syahrul Yasin Limpo (SYL) explained, AUTP or agricultural insurance is a protection to farmers so they don’t suffer losses when they experience crop failure, whether caused by climate change or OPT (Plant Disturbing Organisms) attacks.

“By participating in the AUTP program, farmers are protected from losses because they receive coverage from the program. AUTP is a protection program for farmers,” said SYL.

The Director General of Agricultural Infrastructure and Facilities (PSP) of the Ministry of Agriculture, Ali Jamil explained, the AUTP program was realized in addition to being an effort to protect farmers, but also to maintain their productivity. AUTP coverage when farmers fail to harvest protects them so they can continue to produce.

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“This AUTP program provides coverage of IDR 6 million per hectare per season to farmers who experience crop failure. That way, they still have the capital to restart their agricultural cultivation,” said Ali.

On the other hand, AUTP is also programmed to maintain the welfare of farmers. With AUTP, farmers who experience crop failure will not experience losses so they can still produce to continue to improve their welfare.

“The AUTP program has many benefits for farmers. We encourage farmers to participate in this program in order to receive coverage and avoid losses,” said Ali.

The Director of Financing for the Directorate General of PSP at the Ministry of Agriculture, Indah Megahwati, explained that participating in the AUTP program is quite easy. Farmers must join a farmer group and participate in the AUTP program 30 days before the planting season begins.

“Registration can be done by filling out the form provided accompanied by local Agricultural Extension Officers and Agriculture Service officers. The Rice Farming Business Insurance Premium is set at 3 percent of the standard input cost for rice farming, which is IDR 6 million per hectare per planting season.

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The premium value to be paid is IDR 180 thousand per hectare per planting season. Of the amount of Rp. 180 thousand, 80 percent or Rp. 144 thousand is subsidized by the government through the State Budget.

“Farmers only need to pay a premium of Rp. 36,000 per hectare per season,” said Indah.

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