The Urgency of Developing Agricultural Insurance as a Protection Strategy for Farmers in Jember Regency

Indonesia is known as an agricultural country, so agriculture plays an important role in the production sector. In addition, the agricultural sector is a buffer for food sources for the community, a source of national income, creates employment opportunities, a source of investment, and generates foreign exchange for the country. On the other hand, businesses in the agricultural sector are faced with quite high risks of uncertainty and farmers have so far been bearing the risks themselves. So, the state has an important role as a counterbalance to the needs of the people in general, because it relates to the joints of life that must be maintained by the state based on the provisions of Article 33 paragraph (2) and paragraph (3) of the 1945 Constitution of the Republic of Indonesia. The agricultural sector has a strategic role in the economy of Jember Regency, the strategic role of agriculture is illustrated through a real contribution in the provision of food, industrial raw materials and bioenergy, as well as environmental preservation through farming practices. In line with the economic development goals of Jember Regency, namely realizing economic growth that leads to improving the quality of life of the people. The challenges for future agricultural development in Jember Regency include how to meet food needs, improve and build land and water infrastructure as well as seeds and nurseries, increase productivity and added value of agricultural products, open access to agricultural financing with low interest rates for farmers, strengthen productive economic business institutions in rural areas, striving to achieve the “Sustainable Development Goals (SDG's)”. Agricultural insurance can be a solution to tackling unpredictable climate change. Through this agricultural production insurance, of course, it will have a positive impact on farmer's life, because the benefits obtained can protect agricultural businesses. Agricultural insurance as a protection strategy for farmers, aims to protect farmers from crop failure losses. Farmers, especially rice farming, can transfer the risk burden they bear to third parties by insuring their business which is known as Rice Farming Business Insurance (AUTP) so that farmers can focus on better, safer and more profitable farming management.