Insurance as a Tool for Managing Risks in Agriculture

The article views the contradiction between necessity for agricultural reproduction of rational parameters for providing food security of the country and reduction of investments, primarily internal, into agrarian sphere of the economy. This condition causes the necessity for development of measures facilitating the stabilization of the sources for reproduction process in the sphere and its development. It was found that one of the most effective measures aimed at the solution of this problem is insurance. However, according to the analysis of current situation in Stavropol Krai, this tool didn’t achieve a lot of success. Taking into account the found drawbacks of the existing mechanism of agricultural insurance, the authors substantiated the necessity for unification of agricultural enterprises into societies of mutual insurance support for reproduction for the purpose of minimization of risks of reduction of profit, caused by the specifics of business in this sphere. Besides, the authors offer the mechanism for their functioning and the methodology for calculation of insurance rates, differentiated according to groups of husbandries as to the type of provided reproductional process, and developed the recommendations for increase of interest of enterprises in entering the societies of mutual insurance support for reproduction. DOI: 10.5901/mjss.2015.v6n5p22