Willingness to pay on cattle business insurance in supporting UPSUS SIWAB in Bangka Belitung Province

Abstract

Apart from productivity problems, the implementation of beef cattle business is faced with various risks. Several risks faced by smallholder beef cattle business, such as; price, disease, feed, marketing, theft, and relationship with traders. In order to maintain the sustainability of the livestock business, breeders need a guarantee in order to continue their business. This guarantee can be in the form of livestock insurance. Cattle insurance is one of the important programs to support the livestock sector, given the important role of cattle insurance not only for breeders but for various parties. This study aims to obtain information about the willingness to pay (WTP) on cattle business insurance in Bangka Belitung Province. This research was conducted from June to October 2018 in Bangka Belitung Province. Data collection was carried out by interviewing 150 farmers as respondents as primary data. In order to strengthen this, secondary data was collected from the agricultural agency at the provincial level. The WTP value obtained shows that it is still below the value of the premium paid at this time, this indicates that farmers still want subsidies from the government for the implementation of AUTS to minimize the risk of livestock business.