Risk Management in Agriculture - Insurance Models

Svetlana Aleksandrova

Abstract: Agriculture is a sector facing risks stemming mainly from climate change, market conditions, and volatility of demand and prices of the agricultural products. Insurance of agricultural crop is an important tool for managing the risk of income loss and crop failure. In the rural development program insurance instruments are aimed at improving risk management and reducing the negative effects of climatic events on agriculture. The measure “Risk management” is included into Rural Development program 2014–2020 supports the introduction of insurance mechanisms aim to reduce the negative effects of climatic events in agriculture. The benefits of risk transfer and public-private partnership between insurance companies and state are revealed through comparative analysis. The survey is focus on EU risk management legislation, best insurance practice, insurance innovation, which are applied in EU countries. The results of analysis show the advantages of the EU innovative insurance instruments and their contribution to develop risk management in agriculture sector and to facilitate the access of agriculture holder to insurance market.

Keywords: farmers; income stabilization funds; insurance; risk management

Date published: 2018-11-21