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Crop insurance effects on the farms’ production and investment indicators in Lithuania

Namiotko Virginia, Galnaitytė Aistė, Kriščiukaitienė Irena, Koç Ahmet Ali

Journal of Water and Land Development

2022

no. 55

41--46

The study aims at evaluating crop insurance effects on the farms’ production and investment indicators in Lithuania. The Common Agricultural Policy after 2020 considers measures helping farmers to adapt to climate change. For this reason, it is essential to evaluate existing risk management measures in order to propose appropriate schemes for the next programming period. In order to evaluate crop insurance effects on the farms’ production and investment indicators farm-level, data from Farm Accountancy Data Network dataset and propensity score matching approach was used. Study period was 2008-2017. The study revealed that participation in crop insurance schemes was influenced by the factors such as age of the farmer, wealth, specialization, and location of the farm. The study also demonstrated that crop insurance did not show statistically significant effects on the selected farms’ indicators. The main reason was support from the national and EU funds.