Bringing agricultural insurance to farmers

(Baonghean) -Nghe An is the only province in the country to pilot agricultural insurance for crops and livestock under Decision 315 of the Prime Minister. This is a truly useful program for agricultural production and has been positively received by the people. However, in reality, there are still some difficulties in the implementation process...

Farmers' support...

Long Thanh is the most low-lying commune in Yen Thanh district. The flood last September caused 100% of the production area to be flooded, of which 597 hectares of summer-autumn rice that was about to be harvested were also lost. Because of participating in agricultural insurance, 780 out of 2,230 households in the commune were insured for over 228 hectares of damaged rice, equivalent to over 2 billion VND that Bao Viet Nghe An Company will pay. “Previously, when participating in agricultural insurance for rice, I, like many other households in the commune, felt very vague. However, when facing natural disasters like what actually happened, I saw the real benefits of participating in insurance…”, shared Mr. Doan Thanh Kham - Giap Ngoi hamlet, one of the most severely damaged households in the commune with an area of ​​up to 12.5 sao. During the summer-autumn crop, 12 communes in Yen Thanh district suffered damage, of which 1,486 hectares lost over 70%, and 2,516.4 hectares lost 30-70%. “In the past, farmers would have suffered great losses due to natural disasters, but thanks to participating in agricultural insurance, that loss was partially covered. The district has now completed the documents and sent them to Bao Viet Company for consideration of payment…”, said Mr. Ma Xuan Uyen - Deputy Head of the Agriculture Department of Yen Thanh district.

Thanks to participating in rice crop insurance, farmers are more secure in production.

Mr. Phan Ba ​​Trung - Director of Bao Viet Nghe An - the unit responsible for organizing, implementing, signing contracts, and compensating for damages in this program with authorities at all levels said: In the summer-autumn crop, 12 communes in Yen Thanh district, 5 communes in Quynh Luu district, and 3 communes in Dien Chau district suffered damage within the scope of agricultural insurance under Decision 135. Currently, Bao Viet is coordinating with relevant agencies to complete the loss records to settle for the people with a payment of nearly 5 billion VND. The basic difference between agricultural insurance under Decision 135 and other insurance products is the insurance premium support policy, according to which farmers have to pay very little, even for poor households, it is completely free. Crops are insured by season, livestock are insured by farming cycle. After more than 1 year of implementation, 50,632 households participated in rice crop insurance with an insured area of ​​9,134 hectares, 1,394 households participated in livestock insurance with a total number of insured livestock of 3,242. The total insurance value was 345,208 million VND, the total insurance premium was 16,206 million VND. Of which, households paid 458.68 million VND, the State supported 15,747.32 million VND. Currently, rice crop insurance has been implemented in 100% of communes and towns in 3 selected districts: Dien Chau, Quynh Luu, Yen Thanh. Regarding livestock insurance (buffalo, cow, pig), initially in the first phase, only Do Luong, Thanh Chuong, Tuong Duong were selected for piloting on a scale of 3 communes per district, but now it is being expanded to 88 communes to meet the needs and wishes of livestock farmers.

Problems that arise

It can be affirmed that the Government's policy of implementing agricultural insurance has supported agricultural producers to proactively overcome and compensate for financial losses caused by natural disasters and epidemics, contributing to ensuring stable social security in rural areas and promoting agricultural production. However, in reality, after more than 1 year of implementation, only poor and near-poor households have participated in insurance quite fully, while farming households, individuals who are not poor or near-poor (normal households), and agricultural production organizations rarely participate in agricultural insurance. Typically, in Yen Thanh district, in the summer-autumn crop, 10,468 households participated in rice crop insurance, of which only 728 normal households participated. In some communes, there were no near-poor households or normal households participating in agricultural insurance, such as Do Thanh, Hong Thanh, Hau Thanh, Hoa Thanh, Tho Thanh, Trung Thanh... Not only ordinary households, agricultural production organizations in Yen Thanh district rarely participated, but this also happened similarly in both districts that piloted agricultural insurance for rice, Dien Chau and Quynh Luu.

Through contact, ordinary households reflected that this is an insurance program with a few identified risks, a narrow coverage, not insurance for all risks, so most farmers are not satisfied when participating. They said that although there is insurance, there are still many other objective risks that cause damage to agricultural production and livestock but are not compensated. Participating in this program, near-poor households still have to pay 20% of the insurance fee, normal households have to pay 40%, agricultural production organizations have to pay 80% of the insurance fee, which is psychologically and habitually unfamiliar to farmers, and they are still hesitant. Moreover, farmers' incomes are generally low, so the available source of money to pay the fee is very difficult. Farmers have to pay the insurance fee in advance, pay from the beginning of the crop to receive support from the budget, while at the beginning of the crop is the time of the crop gap, people often have to spend many types of costs at the same time to serve production.

For the pilot livestock insurance, ordinary households with livestock also rarely participate in insurance. Do Luong is one of three districts (Tuong Duong, Thanh Chuong) chosen by Nghe An province to implement the pilot livestock insurance, because this is the district with the largest total herd of buffalo, cows, and pigs in the province. In the three communes of Giang Son Dong, Nhan Son, and Dai Son participating in the district's pilot livestock insurance, the participation rate of poor households is up to 82%, near-poor households participate at 1.5%, and normal households participate at only 0.1%. Regarding this very low participation rate, the Steering Committee for Livestock Insurance in Do Luong district explained: “Previously, before Circular 43 of the Ministry of Agriculture and Rural Development and Decision 2114 of the Ministry of Finance, the scope of insurance was still narrow. Specifically, livestock breeders were not compensated in case their livestock died due to storms, tornadoes, or diseases such as septicemia, anthrax, typhoid, etc. In addition, the insurance premium rate and level were quite high. The insured person must pay the insurance company the entire prescribed insurance premium within 7 days from the date of signing the insurance contract. If the insured person does not pay the insurance premium in full and on time, compensation will not be settled, unless otherwise agreed in writing. This rule has inadvertently hit ordinary households - those with dozens or more buffaloes, cows, and pigs, and at the same time have to pay a large fee, causing many households to be hesitant and not participate”…

To resolve the above problems and mobilize ordinary households to participate in agricultural insurance, Bao Viet Nghe An Company is currently coordinating with related members to carry out the process of confirming natural disasters and epidemics, determining productivity, calculating losses and damages to satisfactorily and promptly resolve for the people. Regarding the recommendations of some households related to expanding the area of ​​agricultural insurance implementation so that more people can benefit, "there must be a roadmap from the Government, because currently the State budget support is only being piloted in selected districts in the period of 2011-2013 and is not yet strong enough to expand...", said Mr. Phan Ba ​​Trung, Director of Bao Viet Company, member of the Provincial Agricultural Insurance Steering Committee.

Khanh Ly