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Purpose: to study the system of agricultural insurance with state support in Russia to identify its advantages.  Discussion. The share of agriculture in Russia's gross domestic product structure is 4 % on average. Not only food security of the country, but also an increase in the exported agricultural products volume is ensured. Unfortunately, the industry’s development prospects do not have stable dynamics due to both internal and external economic factors. The experience of the developed countries shows that government support is a key factor for sustainable agricultural development and increasing its competitiveness. This need is due to the specific risks of agriculture. So, in crop production, weather risks which are annually exposed to a number of the country agrarian-oriented regions in areas of risky farming are unpredictable. The new system of agricultural insurance with state support, consisting of two types of subsidies, guarantees compensation for agricultural producers from extreme weather situations without reference to the timing of the harvest, and also provides for a insurance certificate cost reduction. With a view to sustainable development of agriculture, the government provides for other state support programs aimed at adjusting budgetary policy, concessional lending, as well as the introduction of new “short” grants for farmers. Despite the measures taken, the volume of agricultural insurance is lower than potential due to the loss of the insured's confidence in the insurance business.  Conclusions. The agricultural insurance market in Russia has a tendency to expand since 2019, and the driver of this dynamics is the changed conditions of state support for agricultural insurance.

Agricultural insurance with state support as a tool of agricultural financial stability