Implementation of agricultural insurance for sustainable food crop in Mutiara Timur and Suka Makmur Sub Districts

Abstract The extreme climate has caused anomaly in rainfall, so there is the potential for floods and droughts to have a direct impact on agricultural sector, particularly decline rice production. To overcome this, government issued policy form of an insurance program known as protect plants from threat crop failure. Aceh Province, which one central provinces lowland production Indonesia, implemented since 2016, but it did not run smoothly due several weaknesses program. Currently, programs developed rapidly, index-based that can indemnity-based insurance. Based above background, researchers are interested studying Willingness Join (WTJ) Pay (WTP) farmers analytical methods used binary logistic regression analysis, Contingent Valuation Method (CVM), Heckman Selection Models. results showed socio-economic factors namely farmer’s age, experience farming, land area, income farming had significant effect WTJ WTP premiums with average premium was Rp168,667 ha −1 per planting season. There 2 things needs do make more successful. First, application cheaper second, increasing farmers’ knowledge about scheme through intensive socialization.