Agriculture is a significant economic sector of every given country. Primarily this industry provides the population with the necessary food and various entities with raw materials. Also to agriculture as a major mechanized sphere is given a priority role in the national economy. Accordingly, the sustainable development of the agricultural sector – a key priority of any development strategy aimed at economic progress and rising living conditions. In recent years throughout the world agrarian sector underwent serious reforms and achieved success. Efficient deployment of well maintained modern technologies, scientifically systematic approach to breeding and seed growing, strong governmental support for farmers are the bases for achieving best results.
Agriculture includes cultivation of crops as tending of livestock for the purpose of production of food and fiber for humans. Mankind began to cultivate food crops about 10,000 years ago. Prior to that time, hunter-gatherers secured their food as they traveled in the nearby environment. When they observed some of the grains left behind at their campsites sprouting and growing to harvest, they began to cultivate these grains. From these humble beginnings agriculture began. Over time, human labor in agriculture has decreased, first because of the use of animals and finally with machinery powered by fossil fuels. Currently, plentiful and economical fossil energy supports an era of machinery and agricultural chemicals. About 1000 liters of oil equivalent are used to produce a hectare of corn with a yield of 9,000 kg/ha. One-third of this energy is used to replace labor, one-third for fertilizers, and one-third for others.
Based on national and international experience we can estimate the current agricultural system and stable rural sector management and underline these distinctions:
- biological and chemical fertilezers are used for only coating the space caused by growing crops and emmision of natural fertile compounds;
- naturally grown and chemical free agricultural products has no any harms for human health and demand for such kind of products was very high and stable in all period of human existence;
- the hormonal compounds are not used for increasing the harvest and rise efficiency;
- avoided from land degradation arisen from above mentioned measures;
As a result of the agrarian reform in agriculture and other agro industries of Uzbekistan underwent important socio-economic changes. Transition from administrative planning and a distribution system to a market-oriented economy changed the economic, financial and legal systems of management and created multistructural agricultural sector. For instance the percentage of agriculture in GDP is 16.8%, which normal for most developing countries. It should be noted that in recent years the share of agriculture in GDP is gradually declining. rural renovation has led to significant positive changes in agricultural production – rising crop yields and livestock productivity.
Radically reduction in cotton acreage and convenience in such areas as vegetables, cereals, potatoes, melons enabled to reduction and increasing prices for food products in the world financial crisis. During 2000-2013 years, grain production increased by 2 times, potatoes by 3,1 times, grapes increased 2 times.
However Uzbekistan is in the risky agricultural territory, doing this sector of the country greatly vulnerable to the influence of natural causes which undermines the stability of its development. And one of the most effective means to control natural risks is their insurance. World experience shows the important role of agricultural insurance in ensuring the productiveness and stability of agriculture. The well maintained insurance coverage system in Uzbekistan is still not very high. There are some characteristics of insurance sector:
1. Presence of two types of risk: which can be prevented, and the risks that appear regardless of any action. Such as flexible agricultural aids extremely shortage the negative impacts of individual adverse weather irritableness, diversification of production- to reduce losses from fluctuations in values for some rural goods. But much of the agrarian risks like the dangers associated with material disasters, radical changes in conditions of international market is objective in nature and may not be taken directly under control by farmers.
2. Systematic features of most of the risks. every risks are divided into two types by number of involving units: risks of particular entities and system risks. The second one is characterized by hardly predictable probability of appearance and refers as the high amount of damages. meanwhile, in rural sphere insurance cover events at the same time most of insurers over a large area. catastrophic nature of some agricultural risks also indicates that the agricultural insurance more dangerous than other ones. And this is especially refers to production of crop where the harvest is directly demand on the climate changes and conditions. Therefore the cost of insurance of such risk is always high.
3. Huge complexity of the risk estimate, the criteria for the insured occurance, assess the influences of insuring event in the real revenue of farmers. and this is due to the presence of different factors affecting the effectiveness and profitability of agricultural productiveness.
Moreover international experience shows, a sustainable and efficient agricultural insurance system primarily must include mechanisms for the participation of the state , to protect the industry from the risks of natural feature. It is clear that the below recommendations aimed at promoting the development of agricultural insurance sector in other countries:
Primarily reach perfection and adopt a special law that would permit regulate relations arising in the field of agricultural insurance, including identified to pecularities and for insurance sector.
Second introduction of mechanisms of direct public center agricultural insurance subsidies, public investment in improving the infrastructure basis for agricultural insurance.
Finally we must take into account that the dev of this type of insurance is directly related to the financial capacity of rural producers and in tandem with this to the course of agrarian reform. Thus it is important to note that the development of agricultural insurance positevely affect succesive steps to further liberize it. Implementation of above-underlined proposals will enhance the economical stability of agro-producers and the investment attractiveness of the industry.
Moreover strong agricultural system is a harmonized system of livestock, farming and other fields of agrarian industry, and consists of following important features:
* efficient use of unsustainable and internal resources in consistence with biologic processes and management.
* good opportunity for meeting the global demand for food and materials of increasing number of population
* development of economic performance of agrarian farmers
* improving the living conditions of population in rural areas
* environmental safety and its further improvement measures
In above-mentioned features, as a component of governmental socio-economic policy, agrarian policy should be well oriented to maintain improvement of rural areas, increase the employment rate of rural population, enable the living conditions, rational use of natural resources.
During the independence period in Uzbekistan gradually implemented agrarian reforms include financial reforms in the sector, especially:
- carried out a mechanism of preferential crediting farms producing agrarian goods for public needs;
- expanded the opportunities for the acquisition of agricultural machinery based on leasing on favorable terms;
- the system of payment of the single land tax for agricultural producers.
World agriculture is rapidly changing its face. Despite the traditional use of dozens of years of technologies, comes a new, hundred of research organizations around the world are trying to improve the effectiveness of various areas of the rural sector. Notably we should not be forgotten that in today`s circumstances, agriculture cannot develop in isolation. Nowadays forming an interconnected complex is essential to the success of the country, as the agriculture is the most important link is closely related to the processing industry, storage and refrigeration facilities, agrarian, chemical measures and financial services. Because of that in the future it is necessary to concentrate on the development of cooperation between these spheres, as well as the improving of crop varieties and hybrids that are resistant to adverse conditions, diseases and pests, growing the number of beef cattle, poultry, introduction of energy-saving and processing technologies. To add to this as mentioned above much of this is already being implemented in practice and future development strategies were proposed, some of them were launched and have been implemented gradually by keeping the pace with world agricultural advances.
There are some problem waiting to be solved . first of all, it is dependent on water. crop production and most of livestock production is confined mainly to irrigated areas. primarily cotton is grown under irrigation. We should implement how to supply agriculture with the sufficient water without any wasting. Secondly, one of the problems that agriculture is facing poor infrastructure and lack of high technology, so both foreign and national investments should be invested. Thirdly, low purchasing power of people in rural areas is yet problem. It can be solved by rising salaries and social payments. the next problem is deficit of new developed methods, for example, USA and Brasil (biggest exporter of agriculture products) use integrated crop-livestock system which can be benefitted from improved chemical, physical and biological properties of the soil.
To conclude, it should be stressed that development the necessary infrastructure for ensuring the social information system, economic, social and ecological convenience in rural territories.