Worldwide researches of the crop insurance suggest two key problems: the lack of the insurer’s interest for defining supply and on the other side, insufficient interest of farmers – potential insureds. The role of the state is necessary in promoting insurance in agriculture, as well as in financing researches that are not exclusively commercial. Having in mind numerous risks and forms of managing them, starting from the fact that risk management is the basis of economic survival of agricultural production, and the lack of previous research in this area, our research is aimed at identifying key incentive and restrictive factors that determine the demand of individual farmers for crop insurance in Serbia. Different conclusions are made on the base of 12 tested hypotheses related to the problem of promoting the demand for crop insurance. Measures of dependence that were used in this paper are Spearman’s rank correlation coefficient and Pearson’s contingency coefficient.


Download data is not yet available.


1. Baez, M.S. & Wong, S. (2007). Insurance in emerging markets: sound development; Greenfeld for agricultural insurance. Sigma, Zurich, 1/2007.
2. Croatian Bureau of Statistics (2010). Structure on farmers’ households, Zagreb.
3. Čolović, V., Mrvić Petrović, N. (2014). Crop Insurance – Risk and Models of Insurance, Economics of Agriculture, 61(3), 561-573.
4. DDOR (1996). Handbook for practice in insurance and reinsurance [in Serbian: DDOR, (1996), Priručnik za praksu u osiguranju i reosiguranju]. DDOR, Novi Sad.
5. European Commission (EC), (2001). Risk Management Tools for EU Agriculture, with a special focus on insurance - Working Document. European Commission, Agriculture Directorate-General, Brussels.
6. GAO, (2012). Crop Insurance: Savings Would Result from Program Changes and Greater Use of Data Mining, GAO-12-256, Report to the Ranking Member, 741EP 2013 (60) 4 (729-743) Permanent Subcommittee on Investigations, Committee on Homeland Insurance and Governmental Affairs, U.S. Senate, United States Government Accountability Office, Washington, DC.
7. Hirsch, B. & Nell, M. (2008). The Law & Economics of Epidemic Livestock Disease Risk Management. In Eger, T., Bigus, J., Ott, C., von Wangenheim, G. (Ed.), Internationalization of the Law and its Economic Analysis, Gabler, Wiesbaden, 239-249.
8. Kaira, A. & Xing, L. (2013). Partnering for food security in emerging markets. Sigma, Zurich, 1/2013.
9. Mahul, O. & Stutley, C. J. (2010). Government Support to Agricultural Insurance: Challenges and Opportunities for Developing Countries. World Bank, Washington, DC.
10. Montenegro statistical office (2011). Agricultural Census 2010 – Structure of farmers’ households. Key variables – land and livestock fund, Podgorica.
11. National Bank of Serbia (2017). Summary of the number of insurance policies, number of insureds and premiums according to insurance types and tariffs in Serbia in 2015. [in Serbian: Преглед броја осигурања, броја осигураника и премије по врстама и тарифама осигурања за Србију у 2015. години. Народна банка Србије, Београд].
12. Njegomir, V., Pejanović, Lj. & Keković, Z. (2017). Agricultural Entrepreneurship, Environmental Protection and Insurance, Economics of Agriculture, 64(3), 1035-1049.
13. Njegomir, V., Marović, B., Pejanović, R. & Kuzmanović, B. (2017). Climate Changes and Insurance of Agriculture, Princip Press, Beograd. [in Serbian: Његомир, В., Маровић, Б., Пејановић, Р. & Кузмановић, Б. (2017). Климатске промене и осигурање пољопривреде. ].
14. Njegomir, V., Tepavac, R. & Bikicki, T. (2016). Risk management in agriculture under climate changes. Economics of Agriculture, 63(4), 1403-1417.
15. Patrick, G.F., Peiter, A.J., Knight, T.O., Coble, K.H. & Baquet, A.E. (2007). Hog producers’ risk management attitudes and desire for additional risk management education. Journal of Agricultural and Applied Economics, 39(3), 671-687.
16. Pejanović, R. & Njegomir, V. (2011). Problems of risk management in the agriculture, Economics of Agriculture, 58(1), 91-103.
17. Raulston, J.M., Richardson, J.W., Outlaw, J.L. & Knapek, G.M. (2010). Does Crop Insurance Reduce the Need for Cash Reserves in Savings Accounts?. Paper presented at the SAEA Annual Meeting, Orlando, FL.
18. Rejda, G.E. (2005). Principles of Risk Management and Insurance. Upper Saddle River, Pearson Education, Inc, New York.
19. Skakavac, Z., Njegomir, V., Pejanović, Lj. & Skakavac, A. (2017). Risk Management of Agricultural Floods, Economics of Agriculture, 64(2), 639-569.
20. Skees, J., Hazell, P. & Miranda, M. (1999). New Approaches to Crop Yield Insurance in Developing Countries. EPTD Discussion Paper 55. International Food Policy Research Institute, Washington, DC.
21. State Statistical Office of Republic of Macedonia (2007). Agricultural Census 2007. Book III: Individual farms grouped by total available land area, by region, Skopje.
22. Statistical Office of the Republic of Serbia (2003). Census 2002 – Agriculture, Agriculture funds, municipalities’ data, Belgrade. Statistical Office of the Republic of Serbia (2013). Census of Agriculture 2012 in the Republic of Serbia – Agriculture in the Republic of Serbia, and
24. Statistical Office of the Republic of Slovenia (2010). Important data on Agricultural Census: land, market gardening, livestock numbers, agricultural machinery. Ljubljana.
25. World Bank (2008). Framework document for proposed loans, credits, and grants in the amount of US$1.2 billion equivalent for a global food crisis response program. World Bank Washington, DC.
26. World Bank (2013). World Development Indicators Database. World Bank, New York.
27. Žarković, N., Toscano, B., Mrkšić, D. & Lisov, M. (2014). Key Features of Crop Insurance in Serbia. Bulgarian Journal of Agricultural Science, 20(1), 23-33.
How to Cite
NJEGOMIR, Vladimir; DEMKO RIHTER, Jelena. THE PROBLEM OF THE DEMAND FOR CROP INSURANCE: THE CASE OF SERBIA. Economics of Agriculture, [S.l.], v. 65, n. 3, p. 995-1014, sep. 2018. ISSN 2334-8453. Available at: <>. Date accessed: 18 oct. 2018. doi:
Original scientific papers