Insurance of agricultural producers.

摘要

During the Soviet period, Russia's agricultural producers were comprehensively insured with State support. Following the retreat from State regulation in the early 1990s, there was a sharp fall in extent of agricultural insurance; during 1993-98 only 5-11% of producers made such arrangements. New legislation in 1997 and 1998 provided for the creation of a Federal insurance regulatory agency, terms and conditions for State support, the payment from Federal funds of 50% of crop insurance premiums, the establishment of a Federal insurance reserve using 5% of premiums paid, and compensation of damage at 70% of crop value. The paper examines various aspects of these provisions. In setting premium levels, more account needs to be taken of the specific nature of agriculture and of regional and local factors. It is essential to define a list of insurable crops, which should be suited to the region where they are grown and have a defined place in cropping schemes. Current inflation and price mobility makethe insurance process unattractive to producers and insurers alike. Forecasted sale prices, defined by the regulatory agency may be a better basis. In general, the proposed system appears not to be burdensome to producers, while offering them significant financial advantages.