How Can Livestock Insurance Adoption be Increased? Empirical Evidence from Indonesia

| The Cattle Business Insurance Program (AUTS) is a vital risk management tool aimed at protecting Indonesian farmers from livestock-related losses. However, its adoption rate remains low. This study compares the characteristics of adopters and non-adopters of AUTS and identifies key factors influencing adoption decisions. Data were collected from 200 cattle farmers in Yogyakarta Province through structured interviews and analyzed using chi-square tests and Binary Logistic Regression (BLR). Significant differences were found between adopters and non-adopters in terms of age, family size, education, credit access, extension contacts, knowledge of livestock insurance, herd size, and farming experience. BLR results show that AUTS adoption is positively influenced by education (ExpB = 1.207, p < 0.01), extension contacts (ExpB = 3.613, p < 0.01), knowledge of livestock insurance (ExpB = 6.100, p < 0.01), and herd size (ExpB = 2.362, p < 0.05), while age (ExpB = 0.959, p < 0.05) and farming experience (ExpB = 0.947, p < 0.01) have negative effects. These findings underscore the importance of strengthening extension services and prioritizing knowledge-based outreach to encourage wider adoption among cattle farmers. © 2025, Researchers Links Ltd. All rights reserved.