Instruments for Financing Damage in Animal Production in Poland and the European Union

The main goal of the chapter is to propose solutions that increase the effectiveness/rationality of spending budgetary funds in the protection of livestock production. The Holistic concept of risk management in agriculture, according to the OECD, is one that recognizes all possible risks, their relationships and interactions, flows of information among the stakeholders and the various forms of public–private partnership. However, the current activities of the European Union and individual member states have focused primarily on crop production. Meanwhile, animal production in many regions and countries is the major part of farm income. EU regulations allow the use of subsidized animal insurance in the field of (a) natural disasters; (b) an adverse climatic event which can be assimilated to a natural disaster and other adverse climatic events; (c) animal diseases or plant pest; and (d) protected animals. However, from the point of view of insurance companies and farmers themselves, it is much more important to prepare solutions that will stabilize the income of farmers raising animals. The chapter discusses the possible insurance solutions and income stabilization tool in relation to animal production.