Agrarian Economy 2021 Т. 14 № 3-4: 93-100


S. Onysko, Candidate of Economic Sciences, professor
ORCID ID: 0000-0002-3084-0938
Y. Tomashevskyi, Candidate of Economic Sciences, associate professor
ORCID ID: 0000-0003-4039-8271
Lviv National Agrarian University


At present, the issue of tariff policy at the crop insurance market needs to be improved. Formation of an effective system of crop insurance is an important task that needs urgently solution, as it effects the level of protection of agricultural producers from adverse weather and climatic factors and, accordingly, the cost of production.

It is concluded that the further development of crop insurance requires revising the tariff policy, recalculating tariff rates, using research and scientific developments in the actual calculations. In addition, collateral insurance has recently been required for lending to agricultural producers. Since each loan product requires insurance of the collateral for the term of the loan agreement, the choice of a joint credit insurance product is accompanied by the choice of a loan rate.

Considering the fact that a farmer will choose a rate that corresponds to his/her idea about an optimal fair rate, it is proposed to use the indicator of financial burden. Thus, the total financial burden on an agricultural enterprise is a kind of market attractiveness while choosing a credit and insurance product. It can also be a basic guide for determining the behavior of key market participants, i.e. agricultural enterprises, insurers and banks. The insurance tariff rate is one of the two main components of the financial burden formation. Therefore, its choice should concern both market reasons and market supply of the credit and insurance product. Such approach will provide of the market behavior, the choice of insurance company and partner bank that are appropriate to the farmers’ capabilities and their goals. Therefore, it is important to analyse and assess the total financial burden on agricultural enterprises.

It is confirmed that the study of the impact of various factors on the insurance rate size, the interest of potential customers-insurers in crop insurance, and increase of the level of insurance protection should contribute to development and implementation of comprehensive insurance packages, which will reduce the tariff rate for agricultural producers.


tariff policy, insurance tariff rate, crop harvest insurance system, agricultural producers, financial load indicator, insurance service



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