A Study on the Policy and Regulation of Agricultural Insurance in Taiwan: Taking Swine Production and Rice Industry as Examples
Date Issued
2015
Date
2015
Author(s)
Shih, Chia-Hung
Abstract
Agricultural insurance normally means the insurance coverage against the economical perils arising from the natural disaster or fortuity accident during agricultural harvest or transportation process and can be divided into two types, namely policy insurance and commercial insurance. The former is used to be a major countermeasure of government against agricultural risk in Taiwan. However the livestock insurance is the one and the only one policy insurance to date and no other agricultural insurance, such as the most desirable rice insurance, is available on the market. Recently there are more academic studies on agricultural insurance. In addition to debrief the status on the agricultural insurance of other states, those studies are centered on the feasibility study on specific item of agricultural insurance, including without limitation the fundamental theory of economy and the insurance, commercial model of agricultural insurance, actuary on premium rates, detriment and aid arising from the natural disaster on the agricultural production, the government financial burden etc. it is noteworthy that more papers are addressed on the rice insurance. Given there is no study on the agricultural insurance currently undertaken by central government, this study explores and analyzes the policies and regulations on the current agricultural insurance, and aims to propose the regulations on crop insurance of natural disaster. First, a national wide questionnaire on insurance salesmen of Farmers’ Associations of all levels was conducted and the statistic outcome shows that the government satisfaction degree of case managers of Farmers’ Association on the pig plague insurance is 89.2%, which indicates Farmers’ Associations of all levels did satisfy such coverage. In addition, 97.5% respondents of Farmers’ Associations positively believe such insurance will avoid or reduce the risk of the illegal transaction of the perished hog. It also shows that Farmers’ Associations of three levels did recognize and satisfy the pig plague insurance that ought to be persistently promoted in the future. The pig plague insurance, undertaken by central government, is a new agricultural insurance that can resolve and adapt to the limitation of the marketplace. This finding reasonably demonstrates that the other agricultural insurances to be carried out via the oligopoly policy of three levels Farmers’ Associations could be more feasible than the competition policy in the future. Nevertheless the management risk may be triggered due to the negligence of government and the top priority of risk management is to identify all possible parties suffering the detriments and determine the mitigation principles of risk management in the first place. As far as the food safety scares arising from the illegal transaction of plagued pigs is concerned, the pig plague insurance undertaken by the central government did a great job to stop the illegal transaction of plagued pigs from the very beginning and set a good example for future risk management. Additionally, this study reviewed the final decisions of the civil action in connection with the existing agricultural insurance and summarized the legal theory used for recovery and possible relief so as to increase the relief opportunity via administrative lawsuit and to enhance the right protection of the insured farmers. Aiming at promulgating agricultural insurance act in an early date, this study further identifies the shortcoming of current Agricultural Development Act and Insurance Act, and refers to Regulations on Livestock Insurance amended in 2011. In addition to the determination on public or private laws, this study strongly recommends that the administrative court to be expressly defined having the jurisdiction to review the complaint of farmers suffered from the inadequate or illegal Administrative Disposition. Further, the storage and release of public stock paddies is always the most important control instruments of central government over the production of rice industry. The experimental results show that when the storage period is more than three years both of the volume weight and the quantities of perfect public stock paddies significantly decrease. Quality decaying indices of public stock paddies also reveal the fact that the grains stored more than three years will lose their planting value. However given the quality variation of the stored rice within the five years period is not statistically significant and the required composition and content of essential amino acid between the new rice, the aged rice and the corn meant to be roughly equal, therefore this study recommends that the public grains stored more than three years may be released as feeding rice or other treatment process. Furthermore, the purpose of this study evaluated the growth performance and intestinal microflora population of broilers fed diets with aged brown rice (ABR) that had 3 years of stored. The ABR was the material chosen to analyze the grain quality, which included the physical properties as well as nutrient analysis to evaluate its applicability in broiler’s diet. This study found that ABR may replace 100% of yellow corn and did not influence on growth performance of broilers; hence providing an alternative opportunity for the use of stored rice in broiler diets. In sum, if the government intends to implement the agricultural insurance in whole, the policy insurance will be highly recommended. In addition to the consideration of government financial burden, it also requires a clear policy with legislation support before the following problem on type of insurance, premium rates, indemnification, and coverage scope to be expected. Under the constraint of global climate change and food safety concern and taking the rice that is our staple crop as example, in the event the government implemented the rice insurance of natural disaster but remain needed to procure a great deal of public grains, this study provide an experimental evidence on the quality of the stored grains and the feasible application to feed livestock by aged brown rice evidencing the timing to implement the agricultural insurance is forthcoming.
Subjects
agricultural insurance
policy
regulations
pig plague insurance
risk management
Regulations on Livestock Insurance
determination between public and private law
public stock paddy
rice
aged rice
quality of grains
broilers
feeding diet
rice insurance of natural disaster
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-104-D96621101-1.pdf
Size
23.32 KB
Format
Adobe PDF
Checksum
(MD5):131c5ad6b2a09cd2c7252dc55483f74f