A B S T R A C T

The purpose of the research – to analyze, from both theoretical and practical perspectives, the impact of insurance mechanisms in agriculture on the sustainability of production, financial stability, and investment opportunities.

The methodology of the research – the study reviews both Azerbaijani and international experience (USA, Canada, European countries), performing analytical and comparative analysis based on statistical data and information from the Agricultural Insurance Fund. The article also evaluates the interactions between insurance functions, state support, and individual farmer strategies.

The practical importance of the research – the results can be used to optimize agricultural policy, improve insurance mechanisms, enhance the efficiency of state support, and assist farmers and government bodies in strategic decision-making.

The results of the research – the study shows that agricultural insurance plays a crucial role not only in reducing production risks but also in stabilizing income, increasing investment opportunities, and promoting sustainable agricultural development. Mechanisms supported by the state provide effective risk management, particularly for small and medium-sized farms.

The originality and scientific novelty of the research – the article evaluates the functional effects of agricultural insurance (risk distribution, income stabilization, investment incentives, development of risk culture, and long-term sustainability) on a scientific basis and provides a comparative analysis based on both national and international experience.

Keywords: agricultural insurance, agriculture, risk management, investment incentive, sustainable development, state support, financial stability, international experience.

http://doi.org/10.59610/bbu1.2026.1.9.