Risks in the farms in Poland and their financing – research findings
Risks in the farms in Poland and their financing – research findings

Summary/Abstract: A combination of the CAP instruments for financing risks will differ depending on the economic factors in a particular country, e.g. the risk awareness among farmers and their willingness to use insurance instruments. The goal of the article is to give answers to the following questions: Which risks are most important to the farmers in Poland? How are they financed? What factors increase the probability of using crop insurance which is subsidized by state and designed for financing crop loss? The answers were provided on the basis of an analysis of a representative poll taken in March 2012 from 750 respondents with the use of the CATI methodology. It turned out that the most important risks were: volatility of the prices on the crop markets and agricultural inputs, winterkill and spring frost. The most popular source of financing crop loss is own capital. The most important factors affecting the probability of using crop insurance are: location and size of the farm, rape cultivation, having very good or good type of soil, previous use of crop insurance, historical record of losses connected with flooding or hail, perception of risk connected with losses resulting from winterkill, opinion about insurance need and cost.

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