business management

Private economy in the world

World Agricultural Support Models

Successful experiences in supporting agriculture should be an example to other countries. We suggest considering what models of assistance to the agricultural sector exist in various countries of the world.

America: direct subsidies and insurance benefits

From the very beginning of the existence of the United States, private farming in the villages played a very important role. For migrants who came to a new land (immigrants from Europe), farming guaranteed successful development, since food products always sold well. However, over time, a new problem arose – overproduction. Also, periodically, the farming business suffered from crop failure. And this, of course, could not but affect the income of farmers. In order to maintain the industry, the US government introduced various types of assistance. One of them is subsidies for farmers.

Six years ago, direct aid from the budget was replaced at the legislative level with risk insurance. Farmers and their assistants cannot know what the price of the crops they planted and the weather will be in the new season. The same can be said about owners of livestock farms, animal care assistants who cannot be confident in the prices of their own products as a result of the risks of losses due to adverse weather conditions and animal illness. So if there is a threat of bad weather or a bad market situation, partial insurance may be provided. In the event that the risks are insignificant, insurance will be higher.
In addition, there are other equally profitable crop insurance options in the United States.

Netherlands and agriculture

This country takes a well-deserved 2nd place after the United States in exporting agricultural products worldwide. There is information that agriculture accounts for at least 10% of the economy. Most of the goods are shipped to Germany. Belgium and France can rightly be called the largest agro-industrial partners.
The state is ready to provide substantial assistance to farmers. So there is a loan program for the Dutch farmers, which is undertaken by the state. Both small and medium-sized entrepreneurs, or alternatively farmers no older than thirty-nine years, can participate in it. Moreover, all loan funds must be spent for specific purposes. This can be optimization of production, as well as an option to improve product quality, or animal welfare conditions.

Private Household Security

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