Increasing Disaster Resilience

Oct 13, 2025 by recoveryshake.com 89 views

Managing Risks in Rice Fields: Case Study of Rice Farmers in Sei Mencirim Village, Deli Serdang

Introduction

Rice farming is a vital sector in Indonesia's economy, providing a source of income for millions of farmers across the country. However, rice farmers in various regions of Indonesia, including Sei Mencirim Village, Sunggal District, Deli Serdang Regency, face numerous risks that can impact their livelihoods. These risks can be in the form of price fluctuations, crop failures, natural disasters, to limited capital access. This study aims to determine the level of risk, the perception of farmers to risk, and risk management strategies applied by lowland rice farmers in the village.

Methodology

This study uses a variation coefficient analysis method to measure farmers' perceptions of risks in various aspects, such as production, markets, institutions, humans, and financial. In addition, research also analyzes the risk management strategy implemented by farmers, which are divided into three categories: ex-ante (preventive) strategies, interactive strategies (adaptations), and ex-post strategies (post-disaster).

Results

The results showed that the level of risk of production, costs, and income in Sei Mencirim Village was relatively high. Farmers' perceptions of the risk of production, institutions, and financial tend to be neutral, while the perception of market and human risks is considered good. Risk management strategies implemented by paddy farmers in Sei Mencirim Village include various forms, ranging from ex-ante, interactive, to ex-post strategies.

Deeper Analysis

The High Risk

The high risk of production, cost, and income shows that the business of rice farmers in Sei Mencirim Village is susceptible to various factors that can affect the harvest and profit. This risk can be attributed to factors such as climate change, soil degradation, and limited access to capital.

Farmers' Perception

Farmers' perceptions tend to be neutral to the risk of production, institutions, and financial indicating that farmers are aware of these risks, but do not consider it a serious threat. This perception may be due to the fact that farmers have been dealing with these risks for a long time and have developed coping mechanisms to mitigate their impact.

Risk Management Strategy

The application of diverse risk management strategies shows that farmers in Sei Mencirim Village already have an effort to reduce the negative impact of the risks they face. These strategies include crop diversification, use of irrigation systems, and participation in agricultural insurance programs.

Recommendation

The results of this study can be used as a reference for various parties, such as government, non-governmental organizations, and banking, to help farmers in Sei Mencirim Village in managing the risk of rice farmers. Here are some recommendations that can be applied:

Increasing Disaster Resilience

Government and related institutions can increase the capacity of farmers in dealing with natural disasters, such as floods and drought, through adequate training and provision of infrastructure.

Plant Diversification

Farmers can be encouraged to plant various types of food crops, so they are not too dependent on just one type of plant.

Capital Access

Increasing access to capital, such as farming credit with low interest rates, can help farmers in overcoming financial risk.

Increasing Agricultural Insurance

Agricultural Insurance Program can be a solution for farmers in dealing with losses due to crop failure or natural disasters.

Resource

Ministry of Agriculture of the Republic of Indonesia: https://www.pertanian.go.id/
Central Statistics Agency (BPS): https://www.bps.go.id/
Ministry of Finance of the Republic of Indonesia: https://www.kemenkeu.go.id/

Conclusion

By understanding risks and implementing appropriate risk management strategies, farmers in Sei Mencirim Village can increase the sustainability of lowland rice farmers and improve their welfare. This study highlights the importance of risk management in rice farming and provides recommendations for stakeholders to support farmers in managing risks.

Limitation of the Study

This study has several limitations. Firstly, the study only focuses on Sei Mencirim Village and may not be representative of other villages in the region. Secondly, the study only analyzes the risk management strategies implemented by farmers and does not provide a comprehensive analysis of the factors that contribute to risk.

Future Research

Future research can build on this study by analyzing the factors that contribute to risk in rice farming, such as climate change, soil degradation, and limited access to capital. Additionally, future research can explore the effectiveness of risk management strategies in reducing the negative impact of risks on rice farmers.

References

Ministry of Agriculture of the Republic of Indonesia. (2020). Rice Production in Indonesia.
Central Statistics Agency (BPS). (2020). Agricultural Statistics in Indonesia.
Ministry of Finance of the Republic of Indonesia. (2020). Agricultural Insurance Program in Indonesia.

Appendix

The appendix includes additional information on the methodology, data collection, and data analysis used in this study.
Frequently Asked Questions (FAQs) on Risk Management of Sawah Rice Farming

Q: What are the main risks faced by rice farmers in Sei Mencirim Village?

A: The main risks faced by rice farmers in Sei Mencirim Village include price fluctuations, crop failures, natural disasters, and limited capital access.

Q: What is the level of risk of production, costs, and income in Sei Mencirim Village?

A: The level of risk of production, costs, and income in Sei Mencirim Village is relatively high.

Q: How do farmers in Sei Mencirim Village perceive the risk of production, institutions, and financial?

A: Farmers' perceptions of the risk of production, institutions, and financial tend to be neutral, indicating that farmers are aware of these risks but do not consider them a serious threat.

Q: What are the risk management strategies implemented by farmers in Sei Mencirim Village?

A: The risk management strategies implemented by farmers in Sei Mencirim Village include ex-ante (preventive) strategies, interactive strategies (adaptations), and ex-post strategies (post-disaster).

Q: What are the benefits of implementing risk management strategies in rice farming?

A: The benefits of implementing risk management strategies in rice farming include reducing the negative impact of risks on farmers, increasing the sustainability of rice farming, and improving the welfare of farmers.

Q: How can government and related institutions support farmers in managing risks?

A: Government and related institutions can support farmers in managing risks by increasing the capacity of farmers in dealing with natural disasters, providing adequate training and infrastructure, and increasing access to capital.

Q: What is the role of agricultural insurance in managing risks in rice farming?

A: Agricultural insurance can play a crucial role in managing risks in rice farming by providing financial protection to farmers against losses due to crop failure or natural disasters.

Q: How can farmers in Sei Mencirim Village increase their resilience to natural disasters?

A: Farmers in Sei Mencirim Village can increase their resilience to natural disasters by implementing risk management strategies such as crop diversification, use of irrigation systems, and participation in agricultural insurance programs.

Q: What are the limitations of this study?

A: The limitations of this study include the focus on Sei Mencirim Village and the lack of comprehensive analysis of the factors that contribute to risk in rice farming.

Q: What are the future research directions in risk management of sawah rice farming?

A: Future research directions in risk management of sawah rice farming include analyzing the factors that contribute to risk in rice farming, exploring the effectiveness of risk management strategies, and developing new risk management tools and technologies.

Q: What are the implications of this study for policymakers and stakeholders?

A: The implications of this study for policymakers and stakeholders include the need to support farmers in managing risks, increasing access to capital and infrastructure, and promoting risk management strategies in rice farming.

Q: What are the recommendations for farmers in Sei Mencirim Village?

A: The recommendations for farmers in Sei Mencirim Village include increasing their resilience to natural disasters, diversifying their crops, and participating in agricultural insurance programs.

Q: What are the recommendations for government and related institutions?

A: The recommendations for government and related institutions include increasing the capacity of farmers in dealing with natural disasters, providing adequate training and infrastructure, and increasing access to capital.

Q: What are the recommendations for agricultural insurance providers?

A: The recommendations for agricultural insurance providers include developing new insurance products that cater to the needs of rice farmers, increasing the coverage of agricultural insurance, and reducing the premium rates for agricultural insurance.