Indemnities to Russian farmers for losses due to extreme weather event losses: the challenges and opportunities

Received: February 15th, 2022 ; Accepted: April 19th, 2022 ; Published: April 25th, 2022 ; Correspondence: [email protected] paper aims to examine indemnity payments to Russian farmers for weather-related loss. Indemnity payments can be made as crop insurance payments or direct payments from budget. The manuscript presents the official data on damage caused by extreme weather and the amount of insurance payments and direct payments to farmers for the years 2005–2021. To process the results of our research, we performed correlation and regression analysis using STATISTICA package. We presented the results of the research in tabular and graphical forms. The research revealed that the average proportion of insurance payments for crop losses in indemnity payments to farmers is 22.1%, and direct payments from budgets of various levels amount to 25.7%. Indicatively, 52.2%% of damage remains uncompensated. According to findings, RUB 1 billion in premium subsidies raises insured area by 0.14% under a steady trend, while other factors result in reduction by 1.1%. The paper reviews the barriers that hinder the development of subsidized crop insurance. We propose a series of measures that can promptly improve the current situation, such as the stabilization of the legal framework, a tighter control over insurance rates and the need for authorities to stem corruption. We also note that in setting insurance rates, it is important to consider the farming techniques, selective breeding potential, and adoption of index insurance