Now the farmer can buy a policy in case of reduction in the harvest of certain crops due to natural phenomena (drought, hail, etc.) only for the whole economy. For each of the affected farm during the season is the assessment of the impact of risks on crops, and to obtain insurance payment need to wait for the harvest. Thus, if one field was hurt, and the other left products, the insured event may not occur.
a New system of insurance will be for farmers more available. In addition to the existing programme will be introduced so-called “second level” of insurance against emergencies. Insured event will be considered a Declaration of emergency. According to the National Union of agricultural insurers (NSA), this mechanism is similar to compensation from the budget for “charged fields”, which was used extensively a few years ago is when the insurance payment can be transferred directly after it is installed, the area of dead crops.
the System of agricultural insurance is subsidized by the state: now the farmers are compensated half of the cost of the policy. The bill would increase subsidies of the costs of small and medium agribusiness up to 80% of the insurance premiums. For other farmers the subsidy in the first year will also be equal to 80% of the insurance premiums in the future every year the amount of state support will drop to 50% of the insurance premiums.
Also will provide additional insurance programs. For example, you can insure a crop only part of the area, the income of farmers, the direct costs of cultivation of crops etc. are Also provided by the so-called index insurance, which takes into account only the fact of lowering the yield of insured crops in a specific area. Thus to prove the occurrence of a natural disaster is not required.
the NSA as a whole supports the bill, but certain moments cause issues for market participants, says the President of the Union of the Roots of biggov. In particular, in his opinion, should detail the concept of emergency in agriculture. “To determine whether the realized risk of emergencies at the insured fields or in the region where they are needed are transparent and clear to all parties the decision-making mechanism based on the evaluation of actual damage and the criteria of emergency. While such a mechanism should involve participation from representatives of the system of agricultural insurance,” he says.
According to forecasts of the Ministry of agriculture, the existing agricultural insurance system in 2020 will be able to insure not less than 6.2 million hectares of agricultural land, which is almost 1.5 times above the level 2019 (4.3 million ha). It is also expected that this year will be insured not less than 7.4 million heads agricultural��agricultural animals, which is 1.2 times more than last year (6.4 million heads).
