Економски инструменти за управљање климатским ризицима у ратарској производњи Републике Србије | Economic instruments for climate risks management in crop production in Republic of Serbia

Crop production significantly contributes to the sustainability and competitiveness of the national agriculture. On the other hand, currently crop production is facing the more and more pronounced variability of climatic factors and weather conditions (primarily with the changes within the temperature regime, as well as disturbed spatial and temporal distribution of rainfalls) that progressively become a limiting factor for its further development. In accordance with the presence of climate risks, several measures are available to crop producers, whose implementation may decrease impact of mentioned risks and serve as adequate protection of their production and expected yields (incomes). Within the group of agro-technical measures primacy is given to the irrigation, while as economic measure mostly is used the crop insurance, as well as trade with financial instruments (weather derivatives) in the countries with developed economy. From the perspective of decision maker at agricultural holding, the presence, selection and implementation of available measures are usually based on their economic effectiveness and acceptability. Relying on the assessment of climate change impacts (before all the presence of the drought phenomenon) and by them caused damages in crop production, there were analyzed some opportunities at national level that can be used to improve the segment of risk management related to the lack of rainfalls, such as wider application of agro-technical measure of irrigation and specific products of insurance (insurance against drought), as well as the possibility of certain financial instruments of OTC and stock market establishment (weather derivatives) at the territory of the Republic of Serbia. Throughout the analysis, the research has showed that agricultural producers have not use in sufficient volume the available alternatives, while the conducted survey identified the main reasons of that. Together with reconsideration on the potential impact of the Common Agricultural Policy of the European Union to the national agricultural policy (focus shifting from the market intervention to the adequate access mechanisms to the instruments for production risks management - subsidy model), as well as indirect impact on individual holdings, it was assessed the economic efficiency of protection of crop production by the purchase of insurance policy against the drought, as like the evaluation of economic effectiveness of irrigation systems implementation and use at relatively small and large holdings primarily oriented to crop production. Conducted economic analysis (based on the contribution margin - variable costs) showed that depending to the present level of drought intensity and verified losses of expected yields, holdings turned to crop production that were previously purchased the insurance policy against drought may reach up to several times higher contribution margin in certain lines of crop production, ensuring itself a larger part of planned incomes during by the weather conditions unfavorable years. Also, all gained values for the indicators of dynamic assessment of economic efficiency of investment in selected irrigation systems show that their implementation lies on proper economic reasoning, what would contributed to the stabilization and increase