scholarly journals Development of Agricultural Insurance of Crop Production in Regions of Southern Russia

2020 ◽  
pp. 183-194
Author(s):  
Ekaterina Shkarupa ◽  
Irina Anikina
Keyword(s):  
Crop Production ◽  
Crop Insurance ◽  
The State ◽  
Insurance Companies ◽  
Agricultural Crop ◽  
State Support ◽  
Agricultural Insurance ◽  
National Union ◽  
Mandatory Requirement ◽  
Southern Russia

State-supported agricultural insurance is a financial policy imperative in agricultural development. The purpose of the article is to study the current state of the development of agricultural insurance of crop production carried out with the state support of the regions of Southern Russia in order to determine the possibilities of expansion of its scope and increase of its accessibility. It was concluded that there had been significant changes in the market during the period under review. The article presents the analysis of agricultural insurance on the example of crop production carried out with the state support of Southern Russian regions. After 2014 there was a decrease in the activity in agricultural insurance both by insurers and insured. The dominant reason for a considerable drop in insurance in crop production has been the transformation of forms of state support for agricultural producers since 2017. It is the transfer to a “single subsidy”, which included all types of industry support costs that lead to the inability to pay crop insurance premiums in many regions, in particular South Russia. It should be noted that since 2016 there has been a decrease in the number of insurance copmpanies that have carried out insurance with state support. This was a result of the tightening of control over insurers by the Bank of Russia and the emergence of a mandatory requirement of membership in the National Union of Agricultural Insurers to those insurance companies that insured producers with government support. Thus, the changes of the terms of insurance subsidies became a threat to this form of support. Recently, there has been some modification of this form of support for the industry, and the task of the state is to consolidate this trend. The study concluded that the attraction of more insurance companies to regional markets, involvement of representatives of medium and small businesses in the agricultural risk insurance system, increased flexibility of insurance conditions with state support and improved quality of insurance payment procedures, possibility to independently determine the increasing factor for arable lands, compensatory subsidies written into agricultural crop insurance contracts will facilitate the access to this measure and expansion of this form of support.

scholarly journals Factors influencing and dynamics of the agricultural insurance market

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 42-49
Author(s):  
Nataliya Tanklevska ◽  
Vitalina Yarmolenko
Keyword(s):  
Crop Production ◽  
Agricultural Sector ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Insurance Sector ◽  
Factors Influencing

The article is aimed at identifying modern features of insurance in the agricultural sector of the Ukrainian economy and defining the factors of influence on the agricultural insurance market. The article discloses interpretation of the terms of «insurance» and «agricultural insurance» and also presents the types of possible risks arising in the activities of agricultural enterprises. The performance indicators of leading insurance companies in the field of agricultural insurance are analyzed. The current state and dynamics of insurance of agricultural risks, which arise both in the field of crop production and in livestock, are researched. This will allow predicting the future prospects of the market for insurance services and products, as well as finding possible optimal ways to solve the problems of product insurance, faced by the agricultural producers. The main factors influencing the efficiency of the insurance market in the agricultural insurance sector are allocated. The basic principles of insurance of agricultural products with the State support are analyzed. It is defined that the further development of agricultural insurance should be directed towards creating a profitable and safe environment for all participants in the agricultural market, which provides for the distribution of risks between agricultural producers, processing enterprises, banks, insurance companies and the State. The agricultural insurance of risks creates possibilities for advantageous harmonizing the interests of participants in the agricultural insurance market and the State as a party whose first priority is to ensure stable economic growth.

scholarly journals Insurance of agricultural products with state support in Ukraine: state, problems and prospects of development

2019 ◽  
pp. 53-62
Author(s):  
Liudmyla Chvertko ◽  
Oksana Vinnytska ◽  
Tetiana Korniienko
Keyword(s):  
Financial Support ◽  
Crop Insurance ◽  
The State ◽  
Agricultural Products ◽  
Insurance Market ◽  
State Support ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Economic Relations ◽  
Practical Recommendations

The purpose of the research is to substantiate the laws of development of agricultural insurance with state support in Ukraine, and provide a set of practical recommendations for implementation of insurance mechanisms for financial support of agriculture. Methodology. The theoretical and methodological basis of the research are the dialectical method of knowledge of economic processes, the fundamental provisions of modern economic theory, scientific works domestic and foreign scientists on economic relations between participants of the agricultural insurance market with state support for agricultural products. A systematic approach, methods of generalization, induction, deduction, analysis, synthesis and comparison were used to achieve this purpose. Results. The necessity and importance of using insurance mechanisms to mitigate risks for agricultural producers had been determined. The state of economic relations for the protection of property interests of agricultural producers had been reviewed in general, and trends in the development of subsidized crop insurance in the insurance market of Ukraine had been identified. The indicators of agricultural insurance and the amount of subsidies from the state budget allocated to reduce the cost of insurance premiums (contributions), which actually had been paid by actors of the agricultural market, had been analyzed. It was revealed that in 2005-2008 the introduction of state support for crop insurance had a positive impact on the performance of the agricultural insurance market, contributed to the popularization of this type of insurance in Ukraine, and positively affected protecting the interests of agricultural producers. The factors hindering the development of domestic crop insurance with state support were revealed. It had been proved that current level of penetration of this kind of insurance protection remains low and insufficient to guarantee the safety of business activities in the agricultural sector, the current model of agricultural state aid, provided by the Law of Ukraine “On peculiarities of crop insurance with state support”, was inefficient and therefore required reformation. The importance of improvements in state regulation, including implementation mechanisms of the existing legislation, and state policy of financial support had been substantiated. It was determined that the market model of crop insurance system in Ukraine should be based on the principles of public-private partnership. Practical meaning appears in the possibility of using theoretical conclusions and practical recommendations for the further development of agricultural insurance in general and crop insurance with state support in particular. Prospects for further research are identification and scientific substantiation of the ways of forming a reliable mechanism for insurance protection of property interests of agricultural producers, development and legislation of recommendations on the forms of effective interaction between the main participants in agricultural insurance – agricultural producers, insurance companies and government.

Plant immunity and crop insurance

2021 ◽  
pp. 38-42
Author(s):  
K.A. Zhichkin ◽  
◽  
V.V. Nosov ◽  
L.N. Zhichkina ◽  
◽  
...  
Keyword(s):  
Crop Production ◽  
Climatic Factors ◽  
Plant Immunity ◽  
Spring Barley ◽  
Agricultural Crop ◽  
Agricultural Crops ◽  
State Support ◽  
Weather Factors ◽  
Agricultural Insurance ◽  
Genetic Characteristics

Agricultural insurance with state support (in crop production) creates conditions for stable and effective activity in the cultivation of basic agricultural crops, which is especially important in conditions of uncertain weather factors typical for the risky agriculture zone, which includes the Samara region. Dry summers, frosty winters with a minimum of precipitation make agricultural production largely dependent on natural and climatic factors. The study purpose is to substantiate the need to take into account the characteristics of individual varieties when insuring agricultural crops with state support. It is necessary to solve the following tasks: - to formulate the biological characteristics of individual varieties of agricultural crops; - to classify all emergencies according to the type of impact on plants; - substantiate (using the spring barley example) the need to correct the existing approach when signing agricultural insurance contracts with state support in crop production. When developing an insurance algorithm, it is necessary to take into account the breeding potential of both agricultural crops and individual varieties associated with their genetic characteristics. The widespread use of the achievements of genetics, realized in the form of the formation of plant immunity, makes it possible to achieve a significant degree of resistance to abiotic and biotic factors that have a compensated and uncompensated nature. As can be seen from the presented calculation, it cannot be said that the presence of a variety in the State Register of Breeding Achievements is a prerequisite for its successful cultivation. Therefore, it is necessary for each agricultural crop to identify a number of features, the presence of which makes this variety resistant to the totality of all factors of the given microregion.

Current models in the field of agricultural crops insurance

2021 ◽  
pp. 127-135
Author(s):  
Nadiia Pysarenko ◽  
Elena Ablova ◽  
Alexander Dudko ◽  
Victor Malyarevsky ◽  
Miroslav Kosyak
Keyword(s):  
Agricultural Production ◽  
Crop Production ◽  
Crop Insurance ◽  
Insurance Companies ◽  
Necessary Condition ◽  
Tariff Policy ◽  
Weather Factors ◽  
Agricultural Insurance ◽  
Reproductive Process ◽  
Insurance Rates

Agricultural production is an important and at the same time the most risky type of economic activity. Its reproductive process is associated with natural and climatic, biological and financial factors, the action of which in many cases is difficult to forgive and control. Crop production is particularly affected by cumulative natural risks. One of the ways to minimize agricultural risks is to use crop insurance as an important means of ensuring the riskiness of agricultural production from probable natural and weather factors. The pricing mechanism for crop insurance services is substantiated, based on the improvement of the insurer’s tariff policy when conducting crop insurance, which is implemented through a system of actuarial calculations and taking into account the peculiarities of insurance in the process of crop production. The possibility for insurance companies to carry out high-quality selection of agricultural risks, stimulating agricultural producers to insure, is analyzed. Actuarial balance has been studied as a necessary condition for improving the tariff policy of crop insurance, which should be based on such principles as: equivalence of insurance relations; admissibility; stability of insurance rates over a long period of time and expansion of insurance liability. The calculation of insurance rates has been improved by taking into account the availability of prices for insurance services, depending on the number of possible risks transferred to insurance and the amount of financial resources accumulated by the insurer, which should be sufficient to reimburse crops under crop insurance contracts. Actuarial balance is identified as a necessary condition for improving the tariff policy of crop insurance. The principles of insurance tariff policy to improve the calculation of insurance rates and the application of actuarial models in the field of crop insurance. Key words: tariff policy, insurance tariff, actuary, actuarial mathematics, actuarial model of agricultural insurance.

scholarly journals Foreign experience of agricultural insurance and prospects of its adaptation in Ukraine

2020 ◽  
Vol 22 (95) ◽  
pp. 22-26
Author(s):  
J. Muzychka ◽  
O. Dadak
Keyword(s):  
State Policy ◽  
The United States ◽  
The State ◽  
Insurance Companies ◽  
Insurance Company ◽  
State Support ◽  
Foreign National ◽  
Agricultural Insurance ◽  
Foreign Countries ◽  
The World

In the articles of the considered process of agrarian insurance in foreign countries. The essence of the concept of “agricultural insurance” and “agricultural insurance risk" is revealed. The history of development of agricultural insurance in the international market of insurance services is studied. There are several well-known national agricultural insurance systems and their characteristics. The national systems and participants of agrarian insurance in the countries of the world, namely: the United States of America, Canada, Spain, Portugal, Italy, Austria, France, Germany, Latvia and Poland are singled out. It is proved that in most countries of the world the importance of insurance of risks of agricultural production as an irreplaceable financial and economic lever of development of agriculture and economy of the countries is described. The most important measures that are provided and mandatory for the participants of the above-mentioned foreign national agricultural insurance systems are highlighted. Models of agricultural insurance in different countries are characterized by certain features: the state is an active participant in the agricultural insurance system; insurance is overwhelmingly voluntary; state policy in the field of insurance is characterized by structure and transparency; the state subsidizes both agricultural producers and insurance companies; Appropriate state institutions and appropriate levers of financial influence are created for the development and implementation of state policy in the field of agricultural insurance. Based on the experience of foreign countries, three main operating systems of agricultural insurance protection have been identified: the system of catastrophic coverage, the system of state administration of agricultural insurance programs, the system of cooperation between the state and insurance companies. It is noted that there is also an inefficient system of “state insurance company”, which sells agricultural insurance services. The main normative acts regulating the insurance process in Ukraine are described. It was proposed to introduce a new program of state support for agricultural insurance, which would clearly define: the subjects of the market of insurance of agricultural products with state support, insurance contracts, insurance rules, the mechanism for providing state support to farmers; information support of state support of agricultural insurance.

Tools of state regulation of the agricultural insurance market

Ekonomika APK ◽  
2021 ◽  
Vol 321 (7) ◽  
pp. 95-102
Author(s):  
Iryna Artimonova ◽  
Kateryna Tkachenko
Keyword(s):  
Research Methods ◽  
Agricultural Sector ◽  
Practical Experience ◽  
State Regulation ◽  
The State ◽  
Insurance Market ◽  
Practical Significance ◽  
State Support ◽  
Agricultural Insurance ◽  
Agricultural Producers

The purpose of the article is to develop practical recommendations for improving the tools of state regulation of the agricultural insurance market. Research methods. The research was based on general scientific research methods, scientific works of domestic and foreign economists on insurance in the agricultural sector of the economy, regulations and Internet resources. The application of the method of comparison, the monographic method in combination with the method of induction made it possible to systematize and generalize the foreign experience of state support for agricultural producers. Research results. The reasons for the need to improve the system of state regulation of the agricultural insurance market are systematized. The international practical experience of formation of systems of the state support of agricultural insurance is generalized. The normative-legal acts regulating relations in the field of insurance of agricultural products are considered. Emphasis is placed on existing programs to protect agricultural producers from the risks posed by the state. An assessment of the current state of the agricultural insurance market in Ukraine and identified prospects for its development using the tools of state regulation. Scientific novelty. It is proved that agricultural insurance is a new effective tool for state support of farmers in case of risks, which will help improve the economic performance of the agricultural sector of Ukraine. Practical significance. Measures to improve the instruments of state regulation of the agricultural insurance market are proposed. The introduction of state support for agricultural insurance will contribute to the growth of the domestic market of agricultural insurance, which will provide additional revenues to the state budget. Refs.: 13.

scholarly journals The budget financing for farms in Ukraine

2021 ◽  
pp. 23-35
Author(s):  
Iryna Tytarchuk ◽  
Maryna M. Dielini ◽  
Oleksandr V. Zhemoyda ◽  
Yelyzaveta R. Bieliaieva
Keyword(s):  
Crop Production ◽  
Agricultural Sector ◽  
Research Process ◽  
The State ◽  
Production Operation ◽  
State Support ◽  
State Budget ◽  
Agrarian Policy ◽  
Theoretical Generalization ◽  
Livestock Products

The purpose of the article is to assess the current realities and areas of state support for farms, substantiation of recommendations for the formation of an effective system of budget funding for support programs in the future. Methods. General scientific and special scientific methods were used in the research process. Interpretation of basic categories and concepts is based on using methods of analysis and synthesis, induction and deduction, theoretical generalization. Results. For many countries agriculture is the most important industry in terms of contribution to GDP and employment, i.e. for both economic development and reduction of poverty. Farms are an important component of the agricultural sector of Ukraine’s economy. They ensure the efficient use of agricultural resources, as the economic interest of the producers themselves, who are mainly the owners of the resources or use some of them on lease, is fully realized. The farm incomes are based on the sale of crop production and livestock products, products of its processing and other industrial products of own products and the provision of different services. Practical contribution. During 2014–2019, the structure of budget programs of the state budget changed annually. At the same time, the central executive bodies were responsible for implementing programs aimed at financing agriculture, fisheries, forestry and hunting. Thus, the structure of the main spending units of the state budget changed. In this context it is important to take specific measures intended for the improvement of production profile considering a market dynamic; to make changes in manufacturing processes; to use more efficient material resources that ensure the reduction of their costs in terms of value per unit of output; to improve management in production operation of an enterprise; to encourage employees to achieve higher production results. Prospects for further research. How are the proposed measures supported by the state? Why is it important to implement them? Which possibilities are for this? The response to these issues requires a reasonable agrarian policy and a creation of effective mechanisms of state support. In consideration of a significant number of methods and approaches to justify agrarian public financing this aspect is quite relevant and important.

Do Farmers Value Insurance Against Extreme Droughts and Floods? Evidence from Odisha, India

2020 ◽  
pp. 097215092095761
Author(s):  
Asis Kumar Senapati
Keyword(s):  
Risk Aversion ◽  
Crop Insurance ◽  
Management Strategies ◽  
Probit Model ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Insurance Product ◽  
Risk Management Strategies ◽  
Willingness To Purchase

Crop insurance provides farmers with financial support and coverage in the event of extreme natural disasters. Despite more than two decades of disseminating the knowledge in India, crop insurance adoption rates remain low with evidence of dis-adoption. This article assesses farm households’ willingness to insure their crops as well as ability to pay for an insurance product designed to help rural Indian farmers manage flood- and drought-associated risks. The objective of this study is to assess the determinants of farmers’ participation in market-based agricultural insurance living in coastal and rainfed areas prone to risky weather. It is hypothesized that crop insurance would lead to less risk-averse behaviour and more efficient use of farm resources. Using probit model, the study highlights several determinants of willingness to insure and empirically verify the role of risk aversion in insurance purchase decisions. The lottery-choice experiment has been applied by the author for evaluating risk attitudes of sample household. Empirical results suggest that as regards farmers’ risk preferences, risk aversion actually plays an important role even though not directly but in interactive terms with expected losses which, in turn, significantly influencing farmers’ willingness to purchase the insurance product. The study underlines significant influence of insurance history on future crop insurance choice decision. Farmers’ insurance purchase history can help insurance companies, in order to devise effective crop insurance programmes in the future. Similarly, the study also foregrounds the significant role of insured amount in insurance contracts, influencing farmers’ crop insurance purchase decision in both rainfed and irrigated regions. It can therefore help insurance companies to revise the contract items or reform the existing subsidies. Finally, the study goes on to recommend the importance of the knowledge of informal risk management strategies followed by farmers before offering them the formal insurance product and the necessity of the insurance companies in understanding the farmers’ behaviour while designing the insurance product.

Willingness to pay for agricultural crop insurance in the northern EU

2014 ◽  
Vol 74 (4) ◽  
pp. 539-554 ◽  
Author(s):  
Petri Liesivaara ◽  
Sami Myyrä
Keyword(s):  
Willingness To Pay ◽  
Crop Insurance ◽  
Arable Land ◽  
Mixed Logit ◽  
Insurance Companies ◽  
Agricultural Crop ◽  
Content Type ◽  
Factors Affecting ◽  
Anchoring Effect ◽  
Split Sample

Purpose – The purpose of this paper is to investigate the demand for crop insurance. Moreover, farmer willingness to pay (WTP) for crop insurance was derived. Factors affecting the demand were also examined in a country where crop insurance products are not currently available. Sensitivity analysis was conducted by studying the price-anchoring effect. Design/methodology/approach – Data from a choice experiment (CE) were analyzed with mixed logit models and the distribution of farmer WTP for crop insurance was derived. A split sample approach with varying premium vectors was used to analyze the price-anchoring effect. Findings – Demand was revealed for crop insurance products in Finland. The demand was higher among younger farmers and farms with more arable land. WTP for crop insurance products was very sensitive to the premium interval presented in the CE design. Research limitations/implications – The price-anchoring effect may disrupt the market development of crop insurance products, because insurance companies may take advantage of the lack of awareness among farmers of crop insurance pricing. Practical implications – The insurance product expected indemnity was a more important factor than the deductible in determining farmer WTP for crop insurance. Therefore, the 30 percent deductible level set for subsidized crop insurance products is not an obstacle for the development of such products in the EU. Originality/value – The study applied a well-known method (CE) to crop insurance in a country where these products are non-existent. The split sample approach was used to examine the price-anchoring effect on crop insurance.

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