Economic and legal characteristics of whole farm revenue insurance

Abstract

Whole-farm revenue insurance represents new risk management instrument in agriculture. Whole-farm revenue insurance is a typical example of the principle of universal insurance. The goal of whole-farm revenue insurance is to unify all the risks of single farm that can be insured under a single policy. In this way, a revenue loss is covered in the case of most cultivated crops on a farm, livestock and unprocessed animal products, such as milk and wool. This type of insurance protects from low revenue due to losses in production, which are the result of a fall in product quality and market price. The aim is to provide protection against small revenue due to production losses that can be attributed to the inevitable natural disasters and market fluctuations that affect the farm revenue in the insured year. The paper deals with the legal and economic aspects of this type of insurance.

Keywords

• insurance
• whole farm
• revenue
• crops
• fruits