Rice Crop Insurance: Sharing Risks with Farmers

(Baonghean) - To limit risks in agricultural production, the Prime Minister issued Decision 315/QD-TTg on piloting agricultural insurance in the 2011-2013 period for three agricultural products: rice, livestock and aquatic products in 21 provinces and cities.

This is a major policy of the Government to support and compensate for financial losses caused by natural disasters and epidemics to agricultural producers, contributing to ensuring social security. In Nghe An, rice crop insurance is being piloted in 3 districts of Dien Chau, Yen Thanh, and Quynh Luu. The Provincial People's Committee has established a Steering Committee for the piloting of agricultural insurance, and at the same time directed the pilot districts to organize the establishment of Steering Committees at the district and commune levels to coordinate with Bao Viet Nghe An Company (the unit assigned by the Ministry of Finance to carry out the pilot).

By participating in rice crop insurance, farmers can confidently invest in production.
Photo: Xuan Hoang

After a period of implementation, on March 1, 2012 (exactly one year since the Prime Minister signed Decision 315/QD-TTg), the Provincial Steering Committee for the Agricultural Insurance Pilot Program coordinated with the People's Committee of Yen Thanh district to organize the signing ceremony of the 2012 winter-spring rice crop insurance contract in Long Thanh commune.

At the ceremony, farmers of Long Thanh commune were awarded "Rice crop insurance certificates". Mr. Nguyen Dinh Khuan happily said: "Rice farming is also full of risks. After planting rice in the field, we have to worry about floods, droughts, and diseases. There were even years when the rice was almost ripe, but floods came and we lost everything. Now that we have insurance for rice crops, we farmers will feel secure to invest in production, because the State has shared the losses of the crops." Mr. Thai Van Nhan - Head of Van Trai hamlet said: "The hamlet has 165 households, 100% of which participate in rice crop insurance. We are very happy because the poor households also receive 100% support from the State for rice crop insurance. The hamlet, which has been poor for a long time, now has less worry when the flood season comes."

Mr. Nguyen Van Duong - Deputy Head of the Agriculture Department of Yen Thanh district discussed: Yen Thanh has over 18,000 hectares of agricultural land, of which over 5,000 hectares of rice are often flooded, and are in great need of insurance. With the efforts of the Steering Committees at all levels, up to now, Yen Thanh has had 7,060 households participating in rice crop insurance, mainly poor and near-poor households (accounting for over 15% of the total number of participating households).

However, some people do not fully understand the policy of rice crop insurance and there are still some problems in the process of compensation for damages to people. As Ms. Tran Thi Nga in Nam Thanh-Yen Thanh explained: "We want that if there is damage to any sao of rice, we must be compensated for that sao of rice, but currently we see that the insurance calculates the average total damage of the whole commune if the productivity decreases. However, my family will still participate in insurance for 6 sao of rice fields, because Nam Thanh is often flooded, if the whole commune is lost, my family still has the opportunity to be compensated."

We returned to Dien Lam commune - Dien Chau and witnessed people eagerly gathering to complete rice crop insurance procedures at Nam Lam and Bac Lam cooperatives. Mr. Dau Xuan Huong - Chairman of Dien Lam Commune People's Committee shared: "Dien Lam has 3,150 households cultivating over 600 hectares of rice, up to this point, over 60% of rice crop insurance procedures have been completed, the commune-level steering committee is continuing to propagate and mobilize non-poor households to participate". Ms. Hoang Thi Huong - Vice Chairman of Dien Chau District People's Committee said: "At this time, over 90% of Dien Chau communes are implementing rice crop insurance procedures. The district and commune-level steering committees are actively propagating to the people so that non-poor households can participate in insurance.

According to Mr. Phan Ba ​​Trung - Director of Bao Viet Nghe An Company, Agricultural insurance is a fairly new field so the implementation process has encountered many difficulties. The company has coordinated with Steering Committees at all levels and localities to promote propaganda activities to answer people's questions related to rice crop insurance such as: State insurance premium support policies, guidance and assistance to Steering Committees at all levels in organizing for households to learn and calculate the remaining household insurance premiums on rice acreage, types of natural disaster and disease risks insured, etc. The company has written software programs to serve statistics and printing, and has printed insurance certificates for 20,668 rice-growing households.

Up to this point, among 21 provinces and cities nationwide that have been allowed by the Government to pilot Agricultural Insurance, Nghe An is the leading province in terms of results, quality and progress. In the coming time, the Company will propose to the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the Central Steering Committee for the Pilot Agricultural Insurance Program to complete documents, forms, software, policy mechanisms, remuneration, conduct additional research, expand the scope of insurance, etc. to better meet the interests of farmers and the entire apparatus at all levels participating in the program implementation."

Van Truong