Climate changes or global warming and related environmental effects have increased the importance of risk sharing for sustainability of agricultural production. Especially in the developing countries, the farmers have taken less action as compared to their colleagues in the developed countries. Accordingly, the policy makers in developing countries have encouraged the farmers to attempt agricultural insurance against risks. There have been different levels of subsidies on agricultural insurances implemented in several EU Member States. The aim of this paper is to analyze the effect of government-private partnership agricultural insurance system which has been practiced in Turkey since June 2006.