Feasibility of Price Insurance of Agricultural Products in Business Stability (Case Study: Sari Farmers)

Agriculture is an activity with various risks, including production, trade and financial risks. The instability of the prices of agricultural products as a major problem has always caused concern and distrust of producers and consumers towards the market. Price insurance with price risk coverage, which is the most important market sign and the most important factor in production and sales decisions, is a good way to reduce product price fluctuations in the market. The purpose of this study is to assess the feasibility of price insurance to cover the price risk of farmers in Sari, which reduces the risk of agricultural prices and business stability.

In this study, using field data and interviews with farmers, Features affecting the acceptance of price insurance such as price insurance flexibility for different products and its varieties, the ability to update premiums based on market day price ,and calculate fair premiums based on the index agreed by the insurer and insurance were investigated. For this purpose, Spearman correlation coefficient and structural equations were used for farmers in Sari.

The results showed that between price insurance and price insurance flexibility variables for different varieties and different products, the ability to update the premium based on the market day price and calculate a fair premium based on the index agreed by the insurer and the insurer there is a positive correlation. Also, the correlation between price insurance and the ability to update premiums based on the market price is greater than other effective factors.

According to the results, the flexibility of price insurance on the acceptance of price insurance for different products and its varieties by farmers, the ability to update price insurance on the acceptance of price insurance by farmers and price insurance on a fair premium based The index agreed by the insurer and the insurer of price insurance has an effect on the acceptance of price insurance by farmers. Therefore, the research hypotheses are confirmed.