Insurance management of the risks in poplar cultivation

Abstract

The specialized cultivation of poplar trees is exposed during its multi-year cycle of cultivation to numerous risks of meteoric and biotic origin, such as wind, frost and plant diseases that cause losses and negatively affect the profitability of the plantation. The risks associated with the instability of the wood market are also important. The aim of the research is to examine the insurance system in poplar cultivation with an assessment of farmers’ propensity towards insurance policies for the protection from the many risks involved in the cultivation. Based on the information received from poplar growers and insurance companies, the current system of income support guarantees is examined. Fundamental are the tools concerning risk management through insurance policies. Public financial support makes the insurance system more attractive by lowering the costs for the growers, but unfortunately there are still limits and restrictive conditions. The new Common Agricultural Policy post-2020 bodes well for building a greater risk management capacity.