Risk management structure at entities is depicted in diagram form displaying all possible instruments of risk management which by its nature belong to control or financing of the risks. Risk management system consists of three compounds: risks sources and risks itself; measures and strategy of risk management at the entity; government policy in the sphere of agriculture support.

System of risk management at the entity consists of risks’ identification; risks’ analyze and monitoring; risks’ evaluation; risks’ management; analyzing of the effectiveness of risk management at the company. Risk management has its tools (instruments), all of which may be divided into two categories: 1) control of risks; 2) financing of risks. The first mainly consists of prevention, evading and minimization of risks that preferably connected with refusal of the most risky entrepreneurial activity. The second consists of different kinds of joining and transferring of risks for payment, self-insurance (money reservation), risks’ combining (hedging, different kinds of terminal contracts) and diversification in the meaning of broadening kinds of activity and creating new projects.

More substantively the article uncovers the main instruments of agrarian risk management such as diversification, hedging and insurance which are analyzed from the position of its possible effectiveness. The author examines quantitative effectiveness analyzing methods of all mentioned above instruments of agrarian risk management. It is examined seven equations that help to find out the efficiency of relevant instrument.

In particular effectiveness of the investment project may be accounted by the next methods: net-present-value; benefit-cost ratio; internal-rate-of-return. It is also proposed equation for one of the most expensive projects – export terminal (elevator). In total, effectiveness of the investment project depends on the number of variables which may be mathematically counted. But to forecast the probability of arising any unfavorable factor in the sphere of agriculture is much harder that may lead to inexactitude of preliminary calculations.

 Effectiveness of the future contracts is defining by comparison of spot and futures market, taking into account possible currency fluctuation. The author noted that variations of futures’ prices are normally less for the spot prices, that’s why the less futures’ fluctuation, the more profitable hedging. It is of great importance to choose proper kind of terminal contracts and currency of hedging; also effectiveness of hedging depends on commodity exchange steadiness, currency fluctuations and amount of grown production.

Effectiveness of the insurance is defining by making difference between the sums of defended/created value and lost value. Under existing infirm practice of agrarian insurance it is reasonable to buy insurance polis only under certain risks and also once there is a need of credit. Besides, the most comfortable for the agrarian companies is insurance with state support, the trouble is that money subsidy pays ex post, but should be paid ex ante (in advance), that’s why insurance with state support in Ukraine now is ineffective.

In the article it is enumerated the other methods of evaluation of the effectiveness of the main risk management instruments. Effectiveness of any entity’s activity depends on proper defining of the effectiveness of risk management instruments according to the circumstances both inside the company and outside it (macro-economic indexes).

 Also it is investigated effectiveness of Ukrainian commodity exchange functioning. The author pays special attention into reduction of the quantity of contracts concluded at the commodity exchanges to 1 percent that is connected with agriculture monopolization by agro holdings, with too much commodity exchanges quantity, with low level of guarantee of contracts fulfillment and with high prices at accompanying services. The author supports scientific position of necessity to broaden independence of the small agrarians who should have a possibility to take part in the electronic commodity exchanges by themselves evading broker’s offices. The question of small and middle agro producers’ access into auctions is also considered. It is of great importance to provide appropriate infrastructure and legislation for the development of terminal contracts market with help of commodity exchanges which must have own reliable clearing centers.

Key words: instruments of risk management; diversification; hedging; insurance; commodity exchange; effectiveness analyzing methods; agrarian risk.