Role of Crop Insurance in Sustainable Agriculture Practices: A Global Perspective

Abstract

Crop insurance protects the farmers and helps in reducing any element of chance associated with agriculture. It is a contract between the agriculturist and the insurer where the insurer promises to pay the farmer an indemnity in case of loss suffered by him due to unforeseen events, against a premium. Crop insurance creates a sense of confidence among the farmers which in turn encourages them to follow the agricultural best practices, thus taking a step towards sustainable agriculture. The concept of sustainable agriculture can be explained as producing food and livestock by causing minimum damage to the environment. Crop insurance thus creates a win-win situation for sustainable agriculture. The importance of crop insurance is undeniable and that is the reason its global footprint is quite prominent. The size of crop insurance market was USD 39.81 billion in 2022, and it was expected to grow to USD 61.51 billion by 2030. Among all the regions, Asia–Pacific is expected to grow at a very fast pace. The objectives of the present chapter are to explain the role of crop insurance towards sustainable agriculture and to make a study of the crop insurance schemes prevalent in selected European and Asian countries. The data have been collected from various secondary sources like books, journals, websites, etc. The authors have come to the conclusion that crop insurance is being offered in the selected European and Asian countries in various forms. Public–private partnership is very common among these selected countries.

Citation

Bhattacharya, S. and Biswas, B. (2024), "Role of Crop Insurance in Sustainable Agriculture Practices: A Global Perspective", Das, R.C. (Ed.) Growth, Poverty and Developmental Aspects of Agriculture, Emerald Publishing Limited, Leeds, pp. 79-92. https://doi.org/10.1108/978-1-83608-076-320241006