Risk Management in Agricultural Production in Conditions of Climate Change in Serbia and Romania

Agricultural insurance is often called risk management, and under this name there is a measure of the EU’s Common Agricultural Policy. The aim of the research in this paper was to analyze the basic characteristics of agricultural insurance in Serbia and Romania under conditions of climate change. The basic hypothesis from which the research is based is that Serbia and Romania do not have sufficiently represented agricultural insurance. Based on the research carried out in this paper, author’s concluded that in Serbia and Romania agriculture has great social importance. Agricultural insurance premiums are subsidized in both countries, in the amount of up to 70% of the premium. The offers of insurance companies in both countries include coverage for the most significant risks caused by climate change. However, despite the above, agricultural insurance is underrepresented, 12% of the total arable agricultural land is insured in Serbia, and 30% in Romania. This confirmed the basic hypothesis of this research. The authors analyze the structure of agricultural holdings and conclude that the dominant share in both countries is held by agricultural holdings with an annual income of less than 2,000 euros. The low economic strength of most agricultural holdings could be one of the reasons for the underdevelopment of agricultural insurance. In future research, it would be useful to carry out a survey research that would include farmers in both countries, in order to get answers as to what is the reason for insufficient application of agricultural insurance.