FORMATION OF THE MARKET MODEL OF AGRICULTURE ON THE PRINCIPLES OF THE STATE AND PRIVATE PARTNERSHIP

Authors

  • Anton Mykhailovych Stelmashchuk State Agrarian and Engineering University in Podilya, Kamianets-Podilskyi

Keywords:

Key words, risk management, state insurance, private insurance, agricultural producers, agro-insurance market, conclusion of contracts, credit resources, state support, public and private partnership.

Abstract

Stelmashchuk A.M. FORMATION OF THE MARKET MODEL OF AGRICULTURE ON THE PRINCIPLES OF THE STATE AND PRIVATE PARTNERSHIP

Purpose. The aim of the article is to review existing practice and justify the formation of the newest market model of agro-industrial insurance on the basis of public and private partnership in Ukraine.

Methodology of research. General scientific and special methods of research are used In the course of research, in particular methods of dialectics and scientific abstraction – in determining the essence of the market of agrarian insurance with state support; analysis and synthesis – in determining the structural elements of the construction of financial and insurance architectural engineering of an agrarian enterprise. When creating a methodological algorithm for constructing financial and insurance architectures of agrarian enterprises, a methodical approach is used which takes into account the diversity of financial and managerial processes in their interconnection and interdependence in order to ensure effective insurance in the agrarian sector.

Findings. The necessity of using risk insurance in agrarian sphere is substantiated. The essence of insurance in the agrarian sphere is revealed and its goals are determined. The reasons for the riskiness of agrarian production are specified. The reasons of low demand for agro-insurance among agricultural producers are considered. The impossibility of developing an insurance market for agricultural enterprises without the use of state support is substantiated. The reasons for the need for rigorous control over the efficient and rational use of the State Budget funds to stimulate agro-insurance are named. Existing agricultural insurance systems are listed. The basic form of state support in the field of insurance of agricultural risks is determined.

Originality. For the formation and regulation of the agro-insurance market, an effective sub-legislative legal framework has been developed to ensure that the newly adopted law really works in favor of farmers, as well as: the mechanism for obtaining compensation, which should be as accessible and transparent as possible, is prescribed.

Practical value. The Law “On peculiarities of agricultural products insurance with state support” is adopted In order to regulate the agricultural insurance market in Ukraine, which grants farmers the right to receive compensation from the state budget paid under agricultural insurance contracts. The main directions of development of the agricultural insurance system in Ukraine based on public and private partnership are determined. It is established that an important component of the developed regulatory system is insurance of agricultural products, which provides risk management in the agricultural sector and promotes the creation of a basis for sustainable economic growth of agricultural production. The necessity of improving the system of domestic agro-insurance with state support is substantiated, as well as suggested methods for improving the conditions of this market and involving agricultural producers in the field of insurance taking into account foreign experience.

Key words: risk management; state insurance; private insurance; agricultural producers; agro-insurance market; conclusion of contracts; credit resources; state support; public and private partnership.

 

Author Biography

  • Anton Mykhailovych Stelmashchuk, State Agrarian and Engineering University in Podilya, Kamianets-Podilskyi
    dr.sc.(econ.), professor, chief research fellow of scientific and research part

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Published

2019-12-25

Issue

No. 1-2 (2019): INNOVATIVE ECONOMY

Section

Economy and innovative development of the national economy

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How to Cite

“FORMATION OF THE MARKET MODEL OF AGRICULTURE ON THE PRINCIPLES OF THE STATE AND PRIVATE PARTNERSHIP”. INNOVATIVE ECONOMY, no. 1-2, Dec. 2019, pp. 13-24, https://inneco.org/index.php/innecoen/article/view/90.