AGRICULTURAL INSURANCE IN THE REPUBLIC OF ARMENIA: A VOLUNTARY CHOICE OR A VITAL NECESSITY?

Abstract

Agricultural insurance is a specialized risk management tool designed to protect against financial losses resulting from damage to or loss of crops and animals. This form of coverage is important for stabilizing agricultural incomes and encouraging greater investment in agricultural productivity, particularly for low-income farmers. Recently, the number of losses due to weather changes has increased dramatically in the Republic of Armenia. In recent months, both frost and hail have made it more relevant in the agricultural sector of the Republic of Armenia to insure or not to insure the crop, and most importantly, how to insure it. Recent cases have shown that insurance has enabled farmers to ensure the continuity of production despite the losses incurred.