FACTORS INFLUENCING FARMERS’ INTENTION TO PARTICIPATE IN CROP INSURANCE

Abstract

The objective of this research was to investigate the factors influencing farmers' intention and characteristics of their intent to participate in crop insurance. Therefore, primary data was obtained through questionnaires to 110 farmers in 14 villages in Sliyeg, Indramayu, West Java, Indonesia. The questionnaire was based on the theory of planned behavior framework. However, the data obtained was analyzed using Structural Equation Modelling to identify the characteristic and factors influencing their intention to participate in crop insurance by pulling out the latent variable score. The result of this research showed that behaviors are significantly influenced by subjective norms and mostly by intention. The dominant indicators of each variable are the people considered important by respondents, their behavior, and determination to purchase crop insurance. The characteristics of farmers with the highest tendency of intention and behavior compared to other categories are male, aged 60 and above, the level of education is junior high, married with four dependents, land tenant with more than 5 years of farming experience and 20,000 hectares of land.