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Assessment Of Factors Influencing Farm Insurance In Bulgaria Through Probability Statistical Methods


  • Dimitre NIKOLOV

    (Institute of Agricultural Economics, Sofia, Bulgaria)

  • Minka CHOPEVA

    () (Institute of Agricultural Economics, Sofia, Bulgaria)


The aim of the report is to explain the impact of key factors on farm insurance level in the context of risk management. The presented results were obtained from a survey on 300 farmers within the project “Risk Management in Agriculture” in 2011–2012, carried out by a research team from IAE. The methods used are probabilistic modelling, probit and logistical statistical modelling in particular. Currently, farmers’ interest in insurances as a modality to cope with natural hazards is at a low level. The greatest chance for insurance has been found in the young farmers; those who receive a high enough amount of EU subsidies and manage utilized agricultural land areas larger than 10 ha. It is necessary to build a new insurance system in agriculture, where the risk is shared between farmers, insurance companies and the state.

Suggested Citation

  • Dimitre NIKOLOV & Minka CHOPEVA, 2016. "Assessment Of Factors Influencing Farm Insurance In Bulgaria Through Probability Statistical Methods," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 13(1), pages 3-12.
  • Handle: RePEc:iag:reviea:v:13:y:2016:i:1:p:3-12

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    References listed on IDEAS

    1. Alberto Garrido & David Zilberman, 2008. "Revisiting the demand for agricultural insurance: the case of Spain," Agricultural Finance Review, Emerald Group Publishing, vol. 68(1), pages 43-66, May.
    2. Enjolras, Geoffroy & Capitanio, Fabian & Adinolfi, Felice, 2012. "The Demand for Crop Insurance: Combined Approaches for France and Italy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-18.
    3. Vincent H. Smith & Barry K. Goodwin, 1996. "Crop Insurance, Moral Hazard, and Agricultural Chemical Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 428-438.
    4. Barry K. Goodwin, 1993. "An Empirical Analysis of the Demand for Multiple Peril Crop Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 425-434.
    5. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    6. Velandia, Margarita & Rejesus, Roderick M. & Knight, Thomas O. & Sherrick, Bruce J., 2009. "Factors Affecting Farmers' Utilization of Agricultural Risk Management Tools: The Case of Crop Insurance, Forward Contracting, and Spreading Sales," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 107-123, April.
    7. Geoffroy Enjolras & Patrick Sentis, 2011. "Crop insurance policies and purchases in France," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 475-486, July.
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    More about this item


    insurance probability; farmers; probit models; CAP subsidies.;

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies


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