Evaluation of Qazvin Plain beet growers in sugar beet yield insurance plan under premium rate policy terms

Document Type : Scientific - Research

Author

Ph.D Student of Agricultural Economics, Payam Noor University of Tehranshargh, Tehran, Iran.

Abstract

Sugar beet is one of strategic products in the crop rotation of Qazvin plain which is endanger of natural, human, and intentional hazards. In this regard, the product yield insurance plan, as an efficient economic strategy in risk management, can protect beet farmers against incurred damages. Given the importance of this issue, in this study, the rate of Qazvin plain farmers participation in sugar beet yield insurance plan under premium rate policy was analyzed. For this purpose, an econometric modeling system based on the multi-period positive mathematical programming (MP-PMP) model and exogenous price elasticity (EPE) approach was used. The required data were from time series (1999-2017) and cross-sectional (2016-2017) that were collected through documentary data and questionnaires from 138 farmers. Results showed that with participation of small, medium, and large beneficiary groups in the yield insurance plan, an increase in sugar beet planting area by 56.9, 61.6, and 71.3% and the gross profit of cropping pattern of 10.3, 12.1 and 14.4% were recorded, respectively compared with non-participation condition. In addition, with 50-70% reduction in government support of premium rate only large beneficiary sample were interested to participate in sugar beet yield insurance plan. Under these conditions, sample beneficiary of small and medium groups will be excluded from the plan and may be skeptical of sugar beet production which in inconsistent with the objectives set out in government programs.

Keywords

References

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Journal of Sugar Beet
Volume 34, Issue 2
February 2019
Pages 227-241

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