Public Support of Agricultural Risk Management – Situation and Prospects

V. VilhelmJ. ŠpičkaA. Valder


No 2/2015, June
pp. 93-102

Vilhelm V., Špička J., Valder A. (2015) "Public Support of Agricultural Risk Management – Situation and Prospects“, AGRIS on-line Papers in Economics and Informatics, Vol. 7, No. 2, pp. 93 – 102. ISSN 1804-1930

Abstract

The aim of the article is to evaluate the development of risk management support in agriculture in the Czech Republic in the period 2001 – 2013. The article also tries to outline some possibilities for the future risk management scheme in the Czech Republic. Data provided by the Support and Guarantee Agricultural and Forestry Fund (PGRLF) and the Czech Insurance Association (ČAP) was described using descriptive statistical methods (mean, standard deviation, coefficient of variation). The data sources for international comparison come from secondary sources made by the research centres for European Commission. Authors identify that risk management support in the Czech Republic after 2014 will not use EU funds from the Rural Development Programme. It will depend on national financial sources, either in the form of direct support (premium subsidies, ad hoc aids) or indirect support of prevention (disease fund, recovery fund). In order to eliminate unexpected need for ad hoc aid, it is highly desirable to establish and continuously contribute a fund for covering catastrophic risks which cannot be managed by farmers or insurance companies. Such fund should be eligible only for those applicants who continuously take risk management measures.JEL classification: Q10, Q14, G22

Keywords

Agricultural insurance, public support, mutual funds, income stabilization.

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