Agricultural Insurance in the USA: An Example of Public-Private Partnerships in Agricultural Risk Management

Abstract

The paper considers the main features of the agricultural insurance system in the United States, its advantages and disadvantages for the development of an effective agricultural insurance system in Ukraine. Farmers face many natural, industrial, and commercial risks. Floods, hail, heat, frost, insects, plant diseases, livestock epidemics, equipment breakdowns, price fluctuations, changes in tariff and non-tariff trade regulations, credit conditions and many other factors cause fluctuations in production results and income. Agriculture is a high-risk business. Its result affects the entire food chain and food security, the well-being of farming families, the development of rural areas, generate a number of positive externalities. These arguments were included in the scientific and political basis for the development of private and public insurance. In Ukraine, in order to promote the sustainability of agriculture, the realization of its resource potential, there is a need to develop the practice of agricultural insurance and risk management. To achieve these goals, you can use the best insurance practices in the United States.