POSSIBLE RISK COVERAGE IN AGRICULTURE THROUGH AGRICULTURAL INSURANCES

Abstract

This article describes a variety of management techniques farm operators use to survive swings in weather, markets, and the economy. As in any industry, risk is a part of the business of agriculture. Although farms vary widely with respect to enterprise mix, financial situation, and other business and household characteristics, many sources of risk are common to all farmers, ranging from price and yield risk to personal injury or poor health. After looking at the agricultural tools applied in different countries from Europe, we underline the importance of the public-private relation in sustaining of agricultural insurance. In Romania, the insurer compensates the agricultural producers who concluded insurance contracts for agricultural cultures and animals damages caused by the a large variety of risks. Taking into account that agricultural activity is done under risk and uncertainty circumstances as a result of natural factors influence whose unfavorable evolution can cause significant damages to the agricultural producers, insurance is an aspect that every agricultural producer should consider. Weather whims turned agricultural insurances into a necessity.