Blockchain Adoption Model in the Supply Chain of Agricultural Products to Support the Transparency of the Insurance Process

Extreme weather changes have the potential to threaten agricultural production and will have an impact on the country's food security. The risk of loss and damage when storing and shipping agricultural products has the potential to harm farmers and all parties involved in the supply chain network of agricultural products. Currently, conventional agricultural insurance is a method used by farmers to manage risks related to extreme weather changes and other stakeholders in the supply chain of agricultural products. Stakeholders pay insurance premiums before the planting cycle begins and receive insurance payments whenever they experience losses along the supply chain. Thus, the insurance company bears all the risks insured, and supply chain stakeholders can reduce losses due to the risks that arise. The long stages of agricultural insurance, from agricultural production to customers, require a high level of control and transparency mechanisms. Blockchain offers high levels of transaction transparency and validation features. Thus, the aim of this research is to build a conceptual model of blockchain adoption in the supply chain of agricultural products. The research method uses a qualitative approach by identifying problems in agricultural product insurance and studying the advantages of blockchain technology as an alternative solution. The result of this research is a conceptual model for adopting blockchain technology in the supply chain of agricultural products. The research results are complemented by several diagrams that explain in detail the roles of each party involved in a supply chain based on blockchain technology for agricultural products. At the end of this article, a data simulation with Fabric Hyperledger framework blockchain is presented.