Agricultural insurance

1. Main types of agricultural insurance

2. Agricultural insurance with state participation

-1 Main types of agricultural insurance

Agriculture is the industry most exposed to the elements of nature, and therefore it is in greater need of insurance protection.

The following are distinguished: types of agricultural insurance:

I. Insurance of agricultural crops and perennial plants (harvest and crops) .

Agricultural crops can be insured against damage, destruction or theft as a result of natural disasters, diseases, attacks by pests, animals, rodents, fire, illegal actions of third parties, destruction of protective structures, power outage, etc.

Insurance events for agricultural crops are their death or damage as a result of drought, lack of heat, excessive moisture, soaking, overheating, frost, freezing, hail, rain, storm, hurricane, flood, mudflow, lack of water or low water in irrigation sources and as a result other meteorological or other natural conditions unusual for the area. The risks of death from diseases, plant pests and fire are taken into account.

When insuring crops, the objects of insurance are not only the material interests of the agricultural producer in the safety of crops as property, but also his material interests in receiving income from the sale of the future harvest. Risks of loss of income are assessed based on the shortfall in actual harvest relative to the long-term average level.

The amount of loss in the event of death or damage to crops is determined based on the cost of crop shortfalls over the entire sown area, calculated by the difference between the average cost of harvest per 1 hectare over the last five years and the cost of the given year at current purchase prices.

The harvest of agricultural crops and perennial plantings, at the request of the policyholder, can be insured only in the event of complete loss of crops or part of the crop area. The amount of damage is determined based on the insured amount per 1 hectare and the size of the area of lost crops.

The conclusion of the contract is confirmed by the issuance of an insurance policy in the established form to the policyholder.

The insurance rate is usually 0.1-2% of the sum insured; for fruit and berry and perennial plantings – 0.2-1.5%; by color – 0.1-1.8%.

II. Farm Animal Insurance

The following animals owned by the insured or taken for fattening are accepted for insurance: horses, cattle, sheep, poultry, camels, donkeys, mules, deer, bee colonies.

Animals are insured in case they are destroyed or damaged for certain specified reasons.

An insured event is death, death, forced slaughter or destruction of animals as a result of the following events: fire, lightning, electric current, explosion, sunstroke (tariff rate 0.2-0.3% of the insured amount); natural disaster (0.3-0.6%); strangulation, animal attack, freezing, poisoning with poisonous herbs, snake bites (0.25-0.7%); illegal actions of 3rd parties (0.2-0.7%).

In the event of the death of a livestock of animals, the amount of damage is determined from their balance sheet (inventory) value on the day of death. Damage in case of death of working livestock (horses, camels, donkeys, mules) is determined minus depreciation. In case of forced slaughter of animals, the cost of edible meat and skins is deducted from the amount of damage.

III. Property insurance for agricultural enterprises.

The following can be accepted for insurance: buildings, structures, transmission devices, machinery, machinery, inventory and equipment, agricultural units and installations (seeders, mowers, cultivators, plows, etc.), unfinished construction projects, agricultural products, etc.

Insurance events for agricultural property are its loss, theft or damage as a result of natural disasters (tariff 0.1-0.2% of the insured amount), groundwater, lightning, soil subsidence, fire (0.2-0.25 %), explosion (0.1-0.15%) and accidents (0.22-0.32%), illegal actions of third parties (0.2-0.3%). The insurance risk is also a sudden threat to property, as a result of which it is necessary to dismantle it and move it to a new location.

The final calculation of the insurance premium is carried out after taking into account all factors influencing the degree of risk (natural and climatic conditions, service life of the property, the presence and condition of security and fire alarms, the condition of the building’s life support systems, etc.).

-2 Agricultural insurance with state participation

Federal Law No. 260-FZ “On state support in the field of agricultural insurance” entered into force on January 1, 2012; in relation to insurance of farm animals - from 01/01/2013; regarding the implementation of compensation payments by the association of insurers - from January 1, 2014.

Agricultural insurance with state support– insurance of property interests associated with the risk of loss (destruction) of agricultural crops, loss (destruction) of perennial plantings, loss (death) of farm animals.

The following are accepted for insurance:

- agricultural crops: grains, legumes, oilseeds, industrial, fodder, melons, potatoes, vegetables, vineyards, fruit, berry, nut plantations, hop and tea plantations;

- perennial plantings: vineyards, fruit, berry, nut plantations, hop and tea plantations;

- farm animals: Cattle (buffaloes, bulls, oxen, cows, yaks); small livestock (goats, sheep); pigs; horses, hinnies, mules, donkeys; camels; deer (deer, sika deer, reindeer); rabbits, fur animals; poultry of egg-laying breeds and poultry of meat breeds (geese, turkeys, chickens, quails, ducks, guinea fowl), broiler chickens; bee families

The insurance contract is concluded for one season (cycle) of growing crops. Harvest should be understood as products that are the result of growing varieties of agricultural crops when they ripen within the time limits provided for by the characteristics of the varieties, as well as climatic conditions.

The object of insurance is the property interests of the insured, which do not contradict the law, and which are associated with damage (shortfall) or loss of agricultural crops.

Only those crops that are in the State Register of Achievements in the Field of Breeding and that are approved for use in a particular region for growing varieties and hybrids are accepted for crop insurance.

Agricultural crops that are located in an area where there is a high probability of collapses, landslides, floods and other natural disasters are not subject to insurance from the moment the relevant document is established by the competent authorities, which confirms the fact of the threat. As well as agricultural crops sown by the policyholder in the last three years preceding the year of insurance, however, in none of them were any products obtained.

In case of damage or death as a result of the dangerous effects of hydrometeorological phenomena that led to a shortage of crops, crop insurance is provided. Such phenomena include:

· soil or atmospheric drought;
freezing and freezing;
· sand or dust storms;
· very heavy and prolonged downpours and rain, as well as hail;
· strong winds, rain floods and spring floods.

In the event of damage or death of crops, the insurance company and the enterprise’s agronomists jointly decide on reseeding or overseeding the affected areas, if necessary, adding additional fertilizers and taking measures aimed at increasing the yield of insured crops. Based on them, a calculation certificate is drawn up.

The average cost of reseeding (reseeding) costs per 1 hectare is determined in accordance with the standards established in agriculture, based on the total cost of work during reseeding (reseeding) and newly sown seeds. In any case, the costs will be lower than those that the policyholder spent on sowing winter crops. Such costs must be agreed upon with the Insurer.

If the damaged crop can be used as animal feed, then the cost of the products used for animal feed is deducted from the amount of compensation. The cost of such products is determined by the policyholder based on the average market price, which is established in the insurance region, but it must be negotiated with the insurance company.

The main task of contract support is to monitor and record the condition of crops during the contract.

Goal: to reduce the impact of negative factors on yield, such as violations of agricultural technology for cultivating crops, including technology and timing of harvesting work.

It is mandatory that in the process of maintaining an insurance contract, the insurer conducts an examination of the insured crops:

· one month from the moment of planting (sowing);
· if the policyholder reports detection of violations in the development of the insured crops.

The insurer has the right to conduct random surveys of the insured plantings (crops) during the period of vegetation development and maturation of the insured agricultural crops.

When insuring agricultural crops and perennial plantings, the object of insurance is the crop and the costs of growing it. The insurance contract covers almost all types of natural disasters, providing equal protection for agricultural enterprises, regardless of the natural and climatic zone in which they are located. Insured events in this type of insurance include: drought, lack of heat, excessive moisture, damping off, frost, freezing, hail, rain, storm, hurricane, flood, mudflow, lack of water or low water in irrigation sources, fire, crop diseases, pest invasion plants, other meteorological and other natural conditions unusual for the area (prolonged rains and winds, snow, frost, fog, ice crust, wind and water soil erosion, landslide, landslide).
Insurance covers all types of crops: winter crops, orchards, berry fields, vineyards, nurseries, greenhouses, etc. Insurance of agricultural crops against almost all natural phenomena and unusual climatic conditions does not mean covering any losses in crop production. The concept of an insured event includes the following conditions: the presence of an object of liability - sowing (planting) a crop; the occurrence of a natural disaster or other unusual adverse event; shortage of agricultural crops. The absence of at least one condition excludes the insurer's liability. Failure to sow winter grain as a result of autumn drought cannot be an insured event, since there is no object of insurance liability here. A crop shortage under normal natural conditions for a given area cannot be considered an insured event. In addition, crops after a natural disaster (for example, hail in the early stages of plant development) can recover and produce a yield no lower than the average for previous years. The unfavorable consequences of heavy rains and prolonged rains, causing a decrease in yield, can be not only mechanical damage and soaking of plants, but also incomplete pollination during the flowering period, lodging of plants, formation of soil crust, rotting of seeds, roots of tuber crops in the soil, washout, siltation and drift of crops, delay in ripening and harvesting, etc. Unfavorable factors also include crop damage by wild animals, birds and rodents. In farms and other individual households, the insurance conditions also provide for compensation for damage in the event of the loss of crops in closed ground (greenhouses, nurseries) due to a power outage caused by a natural disaster, fire or accident. Flowers can be additionally insured in case of theft.
For this type, the voluntary form of insurance predominates. One of the main conditions when concluding an agreement is compliance by farms with agrotechnical requirements. An insurance contract, as a rule, can be concluded before the end of the planting period of certain types of agricultural crops in a given area. The concluded contract may be terminated if the farmer violates the rules for caring for the plantings. The amount of insurance coverage depends on the level of productivity. In collective farms, state farms and other enterprises, the level of compensation for losses is set at 70%. Farms and rental businesses determine this level themselves when concluding an insurance contract.
Along with losses from loss or damage to crops, costs associated with reseeding or reseeding crops after a natural disaster are also reimbursed. As a rule, compensation of losses is practiced in comparison with the average harvest level for three favorable years from the last five years in relation to the yield stipulated in the contract. When insuring perennial plantings, the object of insurance is both the plantings themselves as fixed or working capital, and the harvest of these plantings. Insurance payment rates are differentiated by groups (types) of crops and by territory.
Insurance of perennial crops is a type of crop insurance. The scope of liability under these agreements includes the complete loss of all or individual trees (bushes) as a result of drought, frost, flood, storm, hurricane, downpour, hail, collapse, landslide, explosion, accidents, groundwater, mudflow , lightning strike, earthquake, soil shrinkage, heat, diseases and plant pests. Plantings that are more than 70% worn out are not accepted for insurance. Insurance compensation to agricultural enterprises is paid in the amount of 100% of the amount of damage. The contract is concluded either for all types of plantings, or for individual groups within the limits of their full cost.
Currently, the following crop insurance system has been adopted: 50% of subsidized insurance premiums are transferred from the Ministry of Agriculture through the Treasury. There are no authorized insurance companies; producers have the right to choose an insurer before the end of the sowing season, pay half of the premiums to it, and transfer the other half to the federal budget. In 2003, the state allocated 280 million rubles to subsidize agricultural insurance.

More on the topic Insurance of agricultural crops and perennial plants:

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agricultural damage insurance

Introduction

2. Problems of agricultural insurance

Conclusion

Introduction

In this course work we will talk on the topic: “Agricultural insurance.” Nowadays, this topic is relevant, since agricultural insurance has recently appeared on the insurance market in Russia.

The process of reproduction represents the interaction and confrontation of various forces of both a natural and social nature.

Along with the inextricable unity between man and nature, there is also a contradiction between them, which is expressed in the continuous struggle of man with nature.

Contradictions between man and nature, on the one hand, and social contradictions, on the other, together create conditions for the manifestation of various negative consequences that are random in nature.

There is a risk inherent in various stages of social reproduction and any socio-economic relations. All these facts contributed to the emergence and development of insurance relations throughout the world.

The centuries-old experience of mankind shows that the process of social production is interrupted or disrupted as a result of the destructive effects of natural forces or the negative consequences of other emergency situations. In this situation, there is an objectively risky nature, and the risk factor causes the need for insurance. Thanks to insurance, any type of human activity is protected from accidents. Gaining confidence that the means of production, products, and financial resources are financially protected from accidents, the entrepreneur has the opportunity to focus his attention on problems directly related to production, commercial and financial activities.

From the above we can conclude that risk serves as a prerequisite for the emergence of insurance relations. The uniqueness of these relations as an economic category lies in the fact that insurance is a category that is in a subordinate relationship with the category of finance.

Also, let's delve a little deeper into the history of insurance development. Until the 18th century Insurance has developed slowly; foreign insurance companies are mainly represented. In 1786, Catherine II issued a manifesto banning insurance from foreigners. In 1822 the Company was closed. The essence of insurance was the conclusion of agreements on the dispersal of the risk of possible damage between interested parties. A feature of these relations was the absence of insurance premiums; compensation for losses was carried out by distributing the amount of damage incurred by one of the parties to the agreement to all its members. Subsequently, insurance relations begin to be built on the basis of regular contributions from the parties to the agreement, which leads to the preliminary accumulation of a monetary fund, which is used to compensate for the damage that has occurred. Insurance coverage was provided through professional and corporate organizations that protected the property interests of their members. These insurance protection systems existed in parallel for a long time. Today, in the conditions of modern market competition, insurance is one of the most profitable activities. The number of insurance companies and clients of these companies is growing. The purpose of this work is to analyze the agricultural insurance market; we will also consider the problems and prospects of agricultural insurance.

1. General concepts and functions of insurance

“Insurance acts as a set of special closed redistribution relations between its participants regarding the formation, through cash contributions, of a target insurance fund intended to compensate for possible emergency or other damage to enterprises and organizations or to provide monetary assistance to citizens.”

There are two parties involved in insurance, the insurer and the policyholder.

“The insurer is a specialized organization that produces insurance and assumes obligations to compensate for damage or pay the insured amount.”

“The policyholder is an individual or legal entity who pays cash (insurance) premiums and has the right, by law or on the basis of a contract, to receive a sum of money upon the occurrence of an insured event.

“The insured amount is the amount of money for which property, health, and life are actually insured.”

The economic essence of insurance corresponds to its functions, expressing the social purposes of insurance. They allow us to highlight the features of insurance as a link in the financial system.

The main one is the “Risk function”, since the insurance risk as the probability of damage is directly related to the main purpose of insurance to provide financial assistance to injured clients. It is within the framework of the risk function that the redistribution of monetary value occurs among insurance participants in connection with the consequences of random insurance events.

The next “Preventive function” is aimed at financing from the insurance fund measures to reduce the insurance risk.

The “control function” of insurance lies in the strictly targeted formation and use of insurance fund funds. This function follows from the specific functions indicated above and manifests itself simultaneously with them in specific insurance relations, in the conditions of insurance.

1.1 Essence and form of agricultural insurance

Agriculture is one of the vitally important sectors of social production and is directly related to meeting the primary material needs of people.

Every year, agricultural producers suffer colossal losses from natural disasters: hail, hurricane winds, abnormal temperature fluctuations, heavy rains, spring floods and other natural disasters, which, according to the approved criteria, are classified as emergencies. Damage caused to agricultural production significantly reduces its sustainability, deprives it of significant reserves for its financial stabilization, and also negatively affects rural development as a whole. Therefore, compared to other objects of the national economy, agriculture is in greater need of protection, which is carried out through insurance.

Agricultural insurance includes:

1.Insurance of agricultural crops;

2. Perennial plantings;

3. Number of animals;

4.Buildings, structures, machines, inventory and equipment of agricultural enterprises and peasant farms. Agricultural insurance is also carried out with state support - insurance of property interests associated with the risk of loss (destruction) of an agricultural crop, loss (destruction) of perennial plantings, loss (death) of farm animals, which is carried out in accordance with the Federal Law of July 25, 2011 No. 260 - Federal Law “On state support in the field of agricultural insurance” and other Federal laws.

Currently, insurance is a necessary feature of a civilized, modern and efficient business system.

Recently, much attention has been paid in the media to the issues of agricultural insurance, but behind this capacious concept there is only crop insurance. Almost nothing is said about insurance of animals, movable and immovable property. Government officials and departments proposing a new model of agricultural insurance also, as a rule, focus only on crop insurance, forgetting that other types of insurance are relevant and in demand in the agro-industrial complex and require both legislative regulation and government support. In addition, the current one-sided understanding of agricultural insurance is reinforced by the current legislative framework, which concerns only the procedure for insuring crops and subsidizing insurance premiums from the federal budget, it does not affect anything else.

1.2 Insurance of agricultural crops and perennial plants

When insuring agricultural crops, losses from a decrease in the amount of main products received compared to the average harvest over the last 5 years are compensated. The amount of damage is calculated based on the purchase (contractual, market) price established in the insurance contract. When reseeding or reseeding dead crops, the amount of damage is determined taking into account the additional costs associated with this and the cost of the harvest of newly sown crops.

The harvest of agricultural crops and perennial plantings, at the request of the policyholder, can be insured against risks in the event of complete loss of crops or plantings on all or part of the crop area. In this case, the amount of damage is determined based on the insured amount per 1 hectare and the size of the area of crops lost by sowing.

Crop insurance contracts are concluded no later than the beginning of sowing (planting). Insurance for crops grown in protected soil is carried out before the start of the production cycle, and for the harvest of perennial plantings and the plantings themselves before they go into winter.

Insurance premiums are calculated for each crop by multiplying the cost of the crop from the entire planting area by the tariff rate. Tariff rates for crops are different and differentiated by region depending on the losses caused by natural disasters.

Insurance premiums under the agreement can be paid in a lump sum in the amount of the annual premium or in installments, and the last installment must be paid no later than the calendar deadline established for accepting insurance of agricultural crops under this agreement.

In some cases, policyholders who pay insurance premiums in a lump sum, when concluding an insurance contract, may be entitled to a discount of up to 10% of the insurance premium, subject to the agreement being concluded before April 30, for autumn crops, May 31 for spring crops, and, accordingly, until July 31 for plantations.

The conclusion of an insurance contract is confirmed by the issuance of a policy in the established form to the policyholder.

1.3 Farm animal insurance

This type of insurance is interesting both for agricultural enterprises, cooperatives, farms, and for individuals.

Objects of insurance:

Cattle

Fur animals

Rabbits

Bee colonies (with hives)

Decorative

Exotic and other animals.

Sick, malnourished animals, those in prenatal and postnatal laying conditions, and also when the last test of animals for brucellosis, tuberculosis, leukemia and other infectious diseases revealed a positive reaction are not accepted for insurance. Insurance risks are:

Death of animals due to fire, natural disaster (flood, landslide, lightning, storm, hurricane, hail, earthquake and other natural disasters); accidents (electric shock, sun or heat stroke, freezing, suffocation, herbal poisoning, animal attacks, snake bites or poisonous insects, drowning, being hit by a vehicle, falling into a crevice), from other injuries;

Death of animals from diseases;

Forced slaughter of animals (by order of a veterinary service specialist);

Loss and death of animals due to illegal actions of third parties: burglary, open theft (robbery), attack, as well as deliberate destruction by arson or other means.

Insurance is also carried out in case of forced slaughter (destruction) of animals, if it is carried out by order of a veterinary service specialist for reasons provided for by the terms of insurance or in connection with measures to combat infectious diseases, epizootics or an incurable disease that precludes the possibility of further use of the animal.

Animals are accepted for insurance in the amount declared by the policyholder, but within the limits of their actual value based on prevailing market prices on the day the contract is concluded.

An animal insurance contract is concluded after their preliminary inspection, subject to the insurance of all animals of a given type and age group owned by an agricultural producer.

An insurance contract can be concluded both for the full scope of liability and for individual insurance risks. At the same time, tariff rates are differentiated.

For animals received by an agricultural producer during the period of validity of the contract, insurance premiums are not charged (unless otherwise provided by the contract). In the event of the death of these animals, insurance compensation is paid in the amount of the insured amount stipulated by the insurance contract.

When an insured event occurs, the policyholder is obliged to report it to the insurer within 24 hours or another period established by the contract from the date of death, forced slaughter or destruction of the insured animals due to fire, natural disasters and accidents. After receiving an application for an insured event, the insurer is obliged to draw up an insurance act in the prescribed form within three days.

In the event of the death or death of an animal, the damage is considered to be its actual value on the day of the insured event.

In case of forced slaughter of an animal, damage is considered to be the difference between its actual value on the day of the insured event and the value received from the sale of edible meat.

If the actual value of the animal on the day of the insured event exceeds the insured amount established by the insurance contract, then the amount of insurance compensation is reduced in proportion to the ratio of the insured amount to the actual value of the animals.

2. Insurance problems

Agricultural insurance is a high-risk type of insurance, since it directly depends on weather and climatic conditions. Direct dependence on climatic conditions is a characteristic feature of agricultural production. Every year, agriculture suffers losses as a result of natural disasters; regularly recurring droughts cause particular harm; the damage can be enormous and can put farms on the brink of bankruptcy, which is why it is so important to increase the role of insurance in agriculture. A special place in agricultural insurance is occupied by crop insurance . In this direction, over the past ten years, a number of regulations have been adopted regulating the agricultural insurance system.

Rosstat calculated the grain harvest in Russia in 2010: it amounted to 60.9 million tons in net weight, which is 37.3% less than the level of 2009, when 97.1 million were collected, but slightly higher than the data announced by the authorities who estimated the harvest at 60.3-60.5 million tons.

This summer, dry conditions developed in the Volga, Ural, and parts of the Southern and Central federal districts. The death of agricultural crops occurred on an area of more than 13.3 million hectares, which is 30% of the area sown with agricultural crops in the affected regions, 17% of the total sown area of the Russian Federation or 30% of the entire sown area of grain crops in the country.

Earlier, representatives of the Ministry of Agriculture and the government of the Russian Federation reported two figures for the grain harvest this year - 60.3 and 60.5 million tons.

For comparison: the grain harvest in Russia in 2007 amounted to 81.5 million tons, in 2008 - 108.2 million tons. Farms of all categories threshed 5.3 million tons of sunflower in 2010, which is 17.3% less than in 2009. The sugar beet harvest decreased by 10.7% - to 22.2 million tons.

As of December 1, 2010, agricultural organizations had sown winter crops for next year's harvest on an area of 11.1 million hectares, which is 17.8% less than a year ago. The plow is plowed on

21.2 million hectares versus 20.8 million hectares on the same date in 2009.

Solving this problem with the help of crop insurance is an effective economic tool that ensures stabilization of the financial situation of the agricultural producer.

The insured are: agricultural enterprises (agricultural organizations and associations, cooperative, rental and farm enterprises and others).

Insurance applies to all types of agricultural crops: winter and spring crops, grains and legumes, industrial, vegetable, melon, fodder orchards, berry gardens, vineyards, etc., and is carried out in a mandatory form.

The object of insurance is the main cultural products. For crops that produce two or three types of main products, all of them are considered insured.

The insured amount of the crop is based on the average yield over 5 years per 1 hectare and in current prices.

In agricultural enterprises, the level of compensation for losses is determined as a percentage.

Insured events are considered to be the death or reduction of harvest as a result of drought, lack of heat, excessive moisture, frost, freezing, hail, fire, hurricane, disease, plant pests and other meteorological and natural conditions unusual for the area.

Agricultural crop insurance begins on the day the crop is planted and ends on the day the crop is harvested.

The amount of insurance payments of an agricultural enterprise is determined based on the average insured yield of each crop, the price of its products, the area of sowing (planting) and tariffs.

The average yield is determined for all types of agricultural crops and for each type of their main product. When calculating the average yield, all years of crop sowing are taken into account, including periods in which the complete destruction of a particular crop occurred. If in some years the crop was not grown, then these years are excluded from the calculation of the average yield, and it is determined as the arithmetic average for the remaining 4 or 3 years.

The full cost of the crop is calculated based on the cost of the average yield per 1 hectare and the area sown with the crop. The cost of the harvest is accepted in the amount determined by the contract, but not less than 50 percent of its value.

The damage to be compensated is determined based on the insurance conditions, the main one of which is the level of the average harvest as an object of insurance liability. For crop insurance, the average yield for the previous 5 years is generally accepted. The principle of calculating damage is to compare the cost of the insured and the actual crop of the current year after the occurrence of the insured event.

The average yield is determined for the entire area sown (planted) of an agricultural crop for the harvest of a given year, i.e. including the one where damage and death occurred and no cleanup was carried out.

Some crops provide 2-3 types of main products (flax, hemp, seeded grass) or are grown for various purposes (for example, winter crops for grain and green fodder). To calculate damage, all types of products received are taken into account.

The conditions for insurance of agricultural crops currently provide, as a rule, compensation for quantitative losses from reduction (destruction) of the crop, and losses from deterioration in product quality are not subject to liability. Therefore, when calculating damage, both the insured crop and that received in the current year are valued at the same prices. Usually these are the prices prevailing at the time of concluding the insurance contract and calculating insurance payments.

The methodology for calculating damage can be represented by mathematical formulas. Their expression varies depending on two factors: whether there was a complete loss of the crop or its decline; how the damaged crop was used - to obtain the planned main product or for other purposes.

Calculation of damage in case of complete loss of a crop crop over the entire area is carried out using the following formula:

where: Y - damage calculated on the entire sowing (planting) area;

C is the average cost of the insured crop yield per 1 hectare;

P is the area sown for the current year's harvest.

In cases where there has been a decrease in the average yield (although there may be death in individual areas), the formula for calculating damage is expressed as follows:

U=(C - C*V/P)*P

where: B is the gross harvest of the main crop products in the current year;

C is the purchase price of 1 cent of the main products of a given crop.

In case of reseeding, the damage is determined by the formula:

Control = (U + R) - Tsu

Y - damage calculated for the entire sowing (planting) area;

P is the amount of reseeding consumption;

Tsu is the cost of the harvest of newly sown crops.

The amount of damage in the event of complete loss of plantings is determined by type (species groups) of plantings, depending on the procedure for their recording on the farm. The amount of damage includes only lost plants in a given area of the garden. Damage is considered to be the book value of lost plantings minus depreciation. Insurance compensation is calculated in the amount of damage to which the crops and plantings were insured, but not less than 50 percent of the amount of damage.

Insurance compensation for crop shortages is paid within 10 days after drawing up a report on the loss (damage) of the crop and calculating the damage and insurance compensation. For lost perennial plantings, damage is determined and insurance compensation is paid within 10 days after uprooting trees or cutting (trimming) plantings for the purpose of their restoration and calculation of insurance compensation.

2.1 Prospects for the development of the agricultural insurance market

Currently, agriculture is provided with insurance coverage of no more than 15%. The lack of a unified methodological basis for insurance and reinsurance in agricultural insurance, as well as an adequate regulatory framework, hinder the development of this insurance industry.

Despite the expansion of the insurance services market as a whole, the strengthening of the insurance legislative framework, and the application of new insurance programs, the agricultural insurance market is problematic. The effectiveness of insurance with state support remains controversial; there is no clear opinion on the use of compulsory or voluntary insurance in agriculture; difficulties arise with the choice of insurance rates and the object of insurance and, of course, with regard to the payment of insurance compensation.

The problems in this insurance sector are caused not only by the specifics of the industry, which cannot be discounted, but by the fact that agricultural insurance (in the form in which it should be carried out in the modern economic system of Russia) is at a nascent stage - it began to take shape in 2002 .

The market economic mechanism assumes that all participants in commodity production have economic independence and are responsible for the results of their economic activities. But ensuring the country’s food and economic security, the social significance of agriculture and its dependence on natural, climatic and many other external factors require government support for this sector of the economy. World experience shows that in most countries this support is provided through various channels, among which insurance is not the least important. Using the example of the EU member countries (Table 10), it can be seen that the degree of agricultural insurance coverage in some countries reaches 100%, and the amount of government subsidies for insurance reaches 67%.

Agricultural insurance is most widely used in crop production. This can be explained by the fact that it is more dependent on natural factors and suffers greater losses from hazardous natural phenomena. But, in addition, in Russian agriculture there has been a shift towards crop production. If in 1990 the share of crop production in the total volume of agricultural production was only 37%, and livestock production 63%, then in 2006 the proportions changed and amounted to 53 and 47%, respectively. And in developed countries, for example, Germany and Canada, this proportion corresponds to the indicators of the Soviet period.

As a result of this imbalance, the country's agriculture has lost significant income, part of the productive arable land has ceased to be used, and seasonal field work dominates the industry. And the saddest result for Russian society is a sharp reduction in per capita consumption of meat and dairy products and a high share of imports in the market for these products.

Conclusion

The prerequisites for the further development of the insurance business in our country are not only the emerging financial stabilization and economic revival, but also the establishment of sources for such development. First, strengthening the non-state sector of the economy: a private entrepreneur (owner), due to his economic isolation from the state, is forced to insure his risks. Secondly, the source of demand for insurance services is the growth in the volume and diversity of private property of individuals and legal entities. At the same time, the development of the real estate market and mortgage lending for housing construction, as well as the privatization of public housing stock, is important. Thirdly, an important source of development of the insurance market is the reduction of the once comprehensive guarantees provided by the state social insurance and social security system.

It is necessary to form a reliable, effective insurance protection mechanism - this is not just a problem of expanding the activities of insurance organizations. This is the task of modern society as a whole, one of the indispensable factors of a market economy, no matter what orientation it chooses. The social orientation of the economy makes demands on a certain structure of forms and types of insurance.

When insuring agricultural crops, agricultural producers pay 50 percent of insurance premiums to insurers at their own expense, the remaining 50 percent of insurance premiums are paid to insurers from the federal budget. The Government of the Russian Federation can differentiate the amount of insurance premiums paid from the federal budget by agricultural crops and by regions.

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Crop insurance. Insurance of agricultural crops and perennial plantings