Insurance Premium Subsidies in Crop Farming: Challenges and Opportunities

The purpose of the article is to show the inefficiency of the policy implemented by the Russian Government in the sphere of agricultural insurance as a tool for managing risks in plant cultivation, and to propose practical measures which will help to change the current negative situation for the better. The article states that in modern conditions state-supported insurance in the Russian Federation is not an efficient instrument for protection of agricultural producers in case of crop losses caused by adverse weather conditions. At present in Russia the insured farming area is about 1%. The use of the correlation coefficient has allowed to define the decline of influence of subsidies for agricultural insurance, allocated from budgets of all levels, on the proportion of the insured farming area.