Hanoi (VNS/VNA) - In spite of being implemented in 2011, the Government-supportedagriculture insurance programme which aims to protect farmers against losses ofcrops and livestock has so far failed to attract farmers due to high premiumand complicated procedures.

The household of TranHuy Cuong, a farmer in Lap Thach district in the northern province of Vinh Phuc,was among 6,000 local households to buy agriculture insurance while it wasbeing trialled in 2011-2013.

After a year, hedecided to end the participation because the insurance premium was high and thecompensation rate remained too low.

“Pigs’ pneumonia,which is a common disease, is not covered, meanwhile, the insurance covers lesscommon illnesses or those that have vaccines,” he told Nong Thon NgayNay (Countryside Today) newspaper.

During the trialbetween 2011 and 2013, participating households in Vinh Phuc province weremostly near-poor households. The participation number remained low compared tothe total number of farmers.

Truong Cong Thang,deputy head of the provincial Sub-Department of Livestock Production andVeterinary, said there are not many insurance companies participating in theprogramme because the provincial small-scale production has exposedto high risks of losses due to low market prices and increasing prices offeed.

Even large scale cooperativesdo not think it is necessary to buy insurance for their produce.

Tran Thanh Son,Director of Binh Dinh Cooperative, a big cooperative in northern Thai Binh provincespecialising in seedlings, irrigation and fertilisers, has neither heard aboutagriculture insurance nor bought any type of insurance for his production. Buthe thinks the insurance application process will be complicated.

Farmers of the cooperativeearn less than 1 million VND (43.5 USD) per 360sq.m in each season, not tomention someone who suffers from losses or enjoys zero profit. It is such ahard task to persuade them to buy high-cost agriculture insurance, he said.

If the Governmentsupports 100 percent of the insurance premium for poor and near-poor householdsand 80 percent for other households, the farmers will be able to participate inthe scheme, he said.

More support fromGovernment

In June this year,the Government issued a decision to allocate more funds for localities toimplement the agriculture insurance programme.

The subjects coveredby agriculture insurance are rice plants, buffaloes, cows, black tiger prawnand white-legged shrimp.

An individual whoworks in agriculture and is from a poor or near-poor household will receivesupport of up to 90 percent for agricultural insurance premium from theGovernment.

Others who are notfrom poor or near-poor households will receive assistance of 20 percent.

Organisations whichengage in agricultural production will be offered 20 percent of fees if theymeet specific requirements.

The assistance willbe valid from June 26, 2019 until the end of 2020.

Nguyen Van Hinh, headof the agricultural development sub-department of An Giang province in theMekong Delta, said the local authorities find it difficult to implement the newdecision. Although the Government offers high rates of financial assistance topoor farmers, most poor households in the province do not have land to plantrice.

Agriculture expert,Professor Vo Tong Xuan, principal of Nam Can Tho University, said the decisionhas demonstrated good will of the Government but it might be difficult toimplement. Farmers hesitate to apply for insurance due to the distance theyhave to travel, lacking knowledge about conditions required by insurance companiesand complicated procedures.

Local authoritiesmust get involved to support farmers, he said.

Hoang Xuan Dieu,former director of Agricultural Insurance Department of Bao Viet InsuranceCorporation, said: “We should persuade farmers so they understand buyinginsurance is to share production risks. In case of losses, they will receivecompensation and from there, they can reinvest in their production.” –VNS/VNA