Determining the Irrigation Insurance of Sistan Water Supply Canals in Order to Use Water Optimally

Document Type : Original Article

Authors

1 PHD, Department of Agricultural Economics, Faculty of Agricultural, University of Jiroft, Iran

2 Assistant Professor of Agricultural Economics, Department of Agricultural Economics, Faculty of Agriculture, Jiroft University

Abstract

despite the variety of types of risk, kinds of insurance which used in Iran are very limited. One of the agricultural insurances is irrigation insurance which insured farmer from the origin of the random factor (river flow as an inputs) not the result of random factors (reduced production). In this type of insurance contract is based on the index of insurance, and compensation is based on forecasts not the happened problem. In this study, irrigation insurance was determined for two regions of Sistan (Chahnimeh and Zahak and Myankngy) for different crop seasons. For this, first water flow of next year using exponential smoothing predicted, and then the critical value of water was found. Finally, using the relationship between production and water flow in different regions the amount of compensation was determined. Amount of compensation that insurance fund should pay orderly to farmers of Myankngy for autumn output and Chahnimeh and Zahak is 143 and 176 million rials and according to the river flow for spring products of Myankngy is more than critical value any compensation will not pay. As a result, this kind of insurance reduced farmer’s risk, increase efficiency of water usage and insurance fund will not lose. These equations can also be used for any amount of flow and any price of agricultural products and according to the managers' forecast, the amount of compensation for the next year can be determined.

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References

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