Agricultural Risk Management System

The agricultural production faces considerable weather and market-related risks, presenting continuous challenges for farmers. In the future, agricultural risk management systems must continuously adapt to the changing environmental and market conditions – factors that are often unpredictable and uncertain. Recognising this, the agricultural policy of the European Union places increasing emphasis on addressing environmental and climate-related challenges in the agricultural sector.

In Hungary, the Agricultural Risk Management System was introduced in 2012 to support farmers in managing weather-related and other risks that impact agricultural production.

The Institute of Agricultural Economics (AKI) examines the operation and potential development of pillars I, II and IV of the risk management system: the agricultural damage compensation, the subsidised insurance schemes and the crisis insurance, thus playing a key role in the operation and the development of the system.

By providing accurate data, the system helps stakeholders in the agricultural sector better adapt to the constantly changing environmental and market conditions and manage growing risks more effectively.