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- Title
Whole farm revenue insurance as a new model of risk management in agriculture.
- Authors
Marković, Todor; Kokot, Željko
- 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
- Subjects
AGRICULTURAL productivity; BUSINESS revenue; RISK Management in Building Construction (Book); FARM management; CROP insurance
- Publication
Field & Vegetable Crops Research / Ratarstvo i povrtarstvo, 2018, Vol 55, Issue 1, p22
- ISSN
1821-3944
- Publication type
Article
- DOI
10.5937/ratpov55-14941