countries that confirmed the effectiveness of agricultural insurance with state support.
This will contribute to reduce the cost of insurance and increase financial stability and
solvency of agricultural enterprises.
It is extremely important to consolidate the provisions in the regulatory documents
that will lay the foundation for the sustainable development of agricultural insurance
and create the preconditions for its application on a voluntary basis. In particular, the
scientists of the National Scientific Center “Institute of Agrarian Economy” with
representatives of insurance organizations, public authorities and international experts
provided the need for a requirement determination on:
- provision of state financial support to agricultural producers, the conclusion of
a contract for forward purchases, the conclusion of a contract for the leasing of
agricultural machinery at the expense of the state budget exclusively in the presence of
an insurance contract for agricultural products concluded with the insurer, a member
of the APA;
- payment of the single tax (IV group) with the subject to the conclusion of
insurance contracts for agricultural products with the insurer – member of the AIP;
- provision of incentives for the development of animal husbandry insurance,
viticulture, horticulture and other sectors receiving state support [4].
We believe that insurance for agricultural products as a condition for obtaining
state support can be extended only to support that is allocated from the budget, has a
specific purpose, provides certain objects of insurance (agricultural products as an
object of forward purchases or collateral for credit operations, livestock, leasing
objects, etc.).
The payment of a single tax (IV group) can be linked only with the necessity to
conclude with the insurer (a member of the AIP) the contracts of multi-risk insurance
for general insurance products that have passed the relevant scientific and government
expertise and provided that the state subsidizes the cost of insurance payments. The
authors’ position is based on the fact that the state, by providing tax incentives to
enterprises in the agricultural sector, which generate more than three-quarters of the
income through the sale of agricultural products, is interested in its insurance in order
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