Agricultural entrepreneurship and production risk management in serbian farms

Abstract

© 2018, Universidade Federal Rural de Pernambuco. All rights reserved. Agricultural sector has an enormous economic significance for Serbia. However, majority of small farmers have been reluctant to conclude insurance contracts of any kind. Despite the great importance of insurance, various studies have shown conflicting results regarding the factors that have a positive impact on agricultural producers to engage with the insurance industry. We investigated the means of risk management available to farm owners in northern Serbian province of Vojvodina. The results indicate that among the possibilities to cover all risks with one insurance policy and a revenue insurance, securities and financial markets through partnerships with suppliers and customers, there is no difference in the impact on total revenue. Also, there is evidence of the inferiority of microinsurance and public-private partnerships.