Declining interest in agricultural insurance in Krasnodar Krai: analysis of causes and consequences

Statistics show that demand for livestock insurance fell by 51%, poultry by 25%, and machinery by 23.2%. These data indicate a revision of farmers’ approaches to insurance services, possibly in order to optimize their costs. At the same time, there is growth in aquaculture insurance (+24.7%), as well as an increase in the number of trades for equipment and crop insurance by 12.9% and 3%, respectively. This may signal that farmers are looking for new opportunities to protect their risks.

The main factors contributing to the decline in interest in agricultural insurance were the growth of costs in the agricultural sector and the increase in prices for the transportation of products (by 17%). Perhaps farmers feel more confident in their ability to cope with emerging risks on their own, although such a strategy may be dangerous in the conditions of an unstable climate and economy.

A comparison with other regions shows that Krasnodar Krai accounts for only 4.2% of all-Russian agricultural insurance cases , much lower than Moscow and other regions. This highlights the need for farmers to rethink their risk management strategies given rising costs and market uncertainty. Farmers may increase their use of insurance as a means of risk minimization in the future, especially if the market situation continues to deteriorate.