Evaluation of Subsidized Crop Insurance in Poland

Aleksandra Wicka and Agnieszka Parlińska

Roczniki (Annals), 2019, vol. 2019, issue 3

Abstract: The aim of the paper was the evaluation of subsidized crop insurance during the years 2010-2019. Crop production is highly exposed to the effects of unfavourable weather conditions leading to significant fluctuations in yield. Farmers are not able to fully cope with these phenomena. They may use the available risk reduction techniques, e.g. diversifying production, but these actions might not be sufficient. In addition, there is a need to transfer risk outside the farm for a reasonable price. Such an effect can be achieved by offering crop insurance in Poland with state subsidies. In the description, data from the Central Statistical Office were used. For change evaluation, structure indicators of insured crop surface and dynamics indicators were used to determine the relative change in the importance of particular types of crop covered by the insurance. Also, the sum insured per 1 ha of insured crops and its trend were calculated. The authors still emphasize that there is an unsatisfactory level of universality of crop insurance among farmers. Despite the modification of legal regulations concerning them, it is estimated that only approximately 20% of cultivated area is protected. In the analysed years, the insured area of cereal crops constituted over 50% of the share in total insured area. The highest percentage of insurance area was observed for oilseed rape with the highest production risk.

Keywords: Agribusiness; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:paaero:302805

DOI: 10.22004/ag.econ.302805

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