Determining sustainable rice farming through supply chain risk management: A case study in central java, Indonesia

This research will determine the actuarially fair premium rate, both theoretically and using the data of rice harvest yield in Central Java Province from 1990-2017. The calculation, employing the rice harvest yield data, results in the premium rate. The farmers must pay for each hectare from IDR 56,000 (minimum) to IDR 161,600 (maximum) with an average value of IDR 110,750.Meanwhile,the standard deviation principle used, the premium results between IDR 78,151 and IDR 143,349.