Agriculture Insurance

Agriculture Insurance

Agriculture has always depended on the weather and the climate.  There has always been a danger of flood, drought or storms, however recently they have become even more frequent than before. It is a result of many different climate changes which we can observe nowadays. They all cause troubles for farmers and ranchers. For these reasons agricultural producers try to protect themselves and agricultural insurance is one of the possible ways to help them. Besides helping when there is a natural disaster, agricultural insurance also helps to protect against the losses caused by the declines in the prices of the commodities. Some risks are covered by the insurance offered by private commercial insurance companies and the other risks are covered by the state insurance programs.

In some countries there is a very developed and complex agricultural insurance program and government is involved in it. If the agricultural production is decreased, it influences also other areas of the economy and that is the main reason why the governments participate and support this kind of insurance. Agriculture is one of  the pillars of the economy in a lot of countries. Another reason why the governments support it is the development of the countryside which cannot be done without agriculture.

However it is very important to support the agricultural insurance, the legislation and the rules must be prepared carefully to make it fair. A supervision and control should be included.The basic areas covered by the commercial insurance usually include the insurance of corps and livestock. Corps can be usually insured
against the fire, frost, whirlwind, flood or other natural disasters.Livestock is usually insured against the infections, illnesses, accidents or even damages caused by the natural disasters. Another area of the agricultural insurance is the insurance of the equipment used by the farmers and ranchers. But as mentioned above, there are also programs which help to avoid losses which could be caused by the changes in the prices of the different agricultural commodities. These are usually covered by the state insurance programs.

Agricultural insurance is necessary for the successful and profitable agricultural policy. And effective agricultural policy leads to effective national economy and national growth. It must be a common interest of governments, insurance companies and agricultural producers.