Uman National University | today: 12/28/2025
| Author(s) |
Вернюк Н. О., , , Григорян Р. Х., , , |
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|---|---|---|---|
| Category | Economics | ||
| year | 2025 | issue | Issue 107 part 2 |
| pages | 32-48 | index UDK | 338.43:338.124.4(100)(477)(045) | DOI | 10.32782/2415-8240-2025-107-2-32-48 (Link) |
| Abstract | The results of the conducted study demonstrate that in leading countries worldwide, the evolution of state support for agricultural producers has shifted from simple ex-post compensation for losses to the establishment of systems that enhance their resilience (ex-ante). In particular, subsidized insurance, actively used in the USA and Canada, does not merely pay compensation after an insured event occurs, but also incentivizes farmers to implement better risk management practices, as insurance premiums may depend on the history of losses and applied technologies. Thus, this represents a fundamental transition from passive receipt of aid to active farmer participation in reducing their own vulnerability. The approval by the European Commission of flexible frameworks, such as TCTF, is critically important, as it creates opportunities for national governments to amend existing legislation, allowing them to respond rapidly to crises without violating competition law. For Ukraine, as a prospective EU member, understanding and implementing these rules is an integral part of the European integration process. There is also a need to create or expand the functions of an existing fund to partially guarantee loans provided by commercial banks to agricultural producers, especially for farms in recently de-occupied territories and for investments in agricultural raw material processing. This would reduce risks for the banking sector, stimulate lending under conditions of uncertainty, and lower the cost of financing. One of the in-demand tools in domestic practice is the development of a public-private partnership (PPP) system, where the state subsidizes part of the insurance premium (up to 50–60%) for farmers. The program should cover both climate and war-related risks, including the inability to harvest due to combat actions or landmines, ensuring the involvement of private capital from insurance companies and reinsurers to cover a significant portion of the risks. | ||
| Key words | state support, crisis, agricultural enterprises, risk management, insurance, stabilization funds | ||