Special Aspects of Agricultural Insurance in Russia

Abstract

Agriculture is high risk area of business, and in the same time is low profitable. In Russia, the main
part of agricultural land for plant breeding and animal breeding is located in area of risk farming. In this case, it is
extremely difficult to achieve growth rate of agricultural production. Farming is under government support, as well
as agricultural insurance subsidizing. However there is a trend of disinterest of agricultural organizations in agricultural
insurance. The tendency to reduce the number of organizations that have concluded insurance contracts, insured
agricultural crops in crop production, etc. are related to many reasons. The main of these reasons is related to the
insufficiency of insurers (insurance companies) engaged in agricultural insurance in Russia. We should also note the
underdevelopment of the market infrastructure of agricultural insurance and the lack of clear confidential relations
between insurers and insurers (agricultural organizations and insurance companies).