The state will help farmers to insure corn, soybeans and sugar beets
Agricultural insurance becomes more affordable for farmers. Today, seven companies have received official license for such activity. In addition to supporting insurers, farmers can count on government assistance, reported agronews.ua.
Last year, the state granted compensation up to 50% of the insurance premium for insurance of winter wheat. And this year, they plan to expand the state subsidy for corn, soybeans and sugar beets. Last year in Ukraine, the law "On peculiarities of agricultural products insurance with the state support" came into force.
The Law regulates relations in agricultural insurance, which is carried out with government support, to protect the property interests of agricultural producers. In 2012, the state allocated 70 million hryvnias to compensate for insurance against loss of winter wheat during wintering. "Domestic agricultural sector needs to move toward a civilized practice when climatic risks are compensated by insurance companies, and farmers have a need for insurance. At present, the legal framework to address the issue of insurance has been established, since the Law "On insurance of agricultural production", initiated by the Ministry of Agrarian Policy and Food of Ukraine Mykola Prysiazhniuk, came into force on July 1, 2012" - the Prime-Minister Mykola Azarov said. And this year, according to the Director of the Department of financial and credit policy and accounting of MAP Bagrat Akhidzhanov, the state plans to expand the list of insurance products, primarily for the spring and summer. Thus, the state subsidy may spread to corn, soybeans and sugar beets.
The fact that the agricultural insurance market is developing is evidenced by the work of the Agricultural Insurance Pool, which was formed last fall. Now it includes 4 insurance companies. According to the deputy project manager of IFC "Development of agricultural insurance in Ukraine" Irina Holovko, the Agricultural Insurance Pool operates on the basis of international standards, ensuring the provision of quality services. In addition, farmers can rely on the affordability of insurance rates, which will be controlled by the government.
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