Document Type : Original Research Paper

Authors

1 Department of Agricultural Economics, Faculty of Agriculture, Shahid Bahonar University of Kerman, Kerman, Iran

2 Department of Planning Research Institute, Agricultural Economy and Rural Development, Ministry of Agriculture, Tehran, Iran

Abstract

Agriculture is a risky activity. In this field, all types of natural, societal and economical risks provide a susceptible environment for the producers. Supporting the producers in agriculture sector against revenue fluctuations plays an important role in increasing motivation and production. The government develops schemes and policies to support the producers, and performance insurance is one of them. Crop insurance supports the farmers against the loss of and or damage to farmer and prevents the farmers' revenue fluctuations. In this study, it’s been tried to model the farmers' participation in the rice insurance scheme in Qaemshahr County. To do so, using Positive Mathematical Programming (PMP), the farmers' behavior in regard with participating in rice crop insurance scheme and the consequence of this participation was studied. The required data was collected from the farmers of Qaemshahr County for a three-year agricultural period (2011-2013) via questionanaire. Based on the results of this study, introducing the rice crop insurance to the farmers, all of the representative farms in the insurance scheme participated in. An increase in the under-cultivation rice farms and their gross margin was the result of this participation. Decreasing the governments support of the insurance premium, will have negative effect on the increasing of the under-cultivation rice farms and their gross margin.

Keywords

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