State support for the development of agricultural insurance (on the example of vegetable growing)

Abstract

Importance: аgricultural insurance is a special type of insurance designed to protect agriculture from emerging risks associated with the production of agricultural products, plant cultivation, and harvesting (for example, in the case of crop production). Purpose: mitigating the impact of climatic conditions, which often have a negative effect on the activities of farms, including providing them with sources of funds to compensate for the damage caused by adverse events of an inevitable nature, is an important factor in the sustainable development of agriculture. Research design: in agricultural insurance with state support, an insured event is the loss of insured crops resulting from the events specified in the insurance contract. Results: farmers who want to insure their crops are offered two programs that provide for state support, according to which the state will pay about 50% of the cost from the budget. Subsidies for crop insurance are allocated by the regional agricultural management body, such as the Ministry of Agriculture or the regional department of agriculture, which is responsible for providing state support for agriculture.