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2018, vol. 55, iss. 1, pp. 22-28
Whole farm revenue insurance as a new model of risk management in agriculture
University of Novi Sad, Faculty of Agriculture

emailtodor@polj.uns.ac.rs
Project:
Sustainable agriculture and rural development in the function of accomplishing strategic objectives of the Republic of Serbia in the Danube region (MESTD - 46006)
This study is a part of the Project APV 114-451-2180/2016 titled: Cultivation of forage crops in crop rotation in order to increase soil fertility and biodiversity in agro-ecological conditions of Vojvodina, funded by the Provincial Secretariat for Higher Education and Scientific Research of AP Vojvodina

Keywords: crops; farms; insurance; one policy; risks; total revenue
Abstract
Since agricultural production takes place under the open sky and it is largely unprotected, the risk of occurrence of some harmful event (hail, flood, drought, cold, storm, fire, etc.) increases. In addition to natural and climatic factors, financial, market and institutional factors have a strong effect on agricultural production. The crop and fruit insurance is certainly the most effective risk management instrument in crop production in the open air. The aim of the paper is to present an entirely new insurance model that began to apply in 2015 in the United States of America. By its application, each farm ensures its expected total revenue that can be endangered by the effects of both natural and climate, as well as market risks, which are manifested through fluctuations in market prices. This way, all crops on the farm are insured from all kinds of risks under just one insurance policy. Analyzed farm has experienced revenue loss due to drought, therefore it has indemnity right in the amount of € 2,500. Premium cost borne by farmer amounts to € 330.
References
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About

article language: English
document type: Original Scientific Paper
DOI: 10.5937/ratpov55-14941
published in SCIndeks: 18/05/2018
peer review method: double-blind
Creative Commons License 4.0

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