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Since the beginning of the year to 30 June in the base of the National Union of agricultural insurers (NSA) received information on insurance on the terms of state support of 1.35 million hectares and 2.9 million heads of farm animals. While the June data is still incomplete, so the figures can still increase substantially, says the President of the NRA of the Roots of biggov.

According to him, the entire spring period was observed high activity of farmers on the conclusion on the terms of state contracts as insurance of crops and farm animals. In the first five months 2020, the area of insured crops has increased 2.8 times, the number of animals by as much as 23 percent, the insurance premium is 1.7 times. The Bank of Russia on the results of the first quarter in insurance selkhozizdat, including subsidized insurance, and insurance without state support, confirm this trend.

According to preliminary data of NSA, the greatest insurance coverage with government support provided farmers in the Voronezh region, where agriculture has insured 196 thousand hectares of acreage; 120 thousand hectares of insured persons in the Republic of Mordovia on 103 thousand hectares of insured farmers in the Omsk region and the Altai territory.

According to Bigdave, the increasing demand of farmers for insurance coverage contributed to significant weather risks this season. Warm and dry fall and winter in several agricultural regions of the South, Central Russia and Siberia indicated the prerequisites to drought, was also a noted cold spring in the South of Russia. This year’s crop started earlier than usual. In addition, in 2019, new insurance conditions came into effect only on March 1 that shifted the term contracts at the end of planting season.

last year, the area of insured crops increased four times and reached six percent – with and spring and winter grains, reminiscent of the Roots of biggov.

“But even with a possible approximation of the coverage of crop insurance this year to 10 percent of the cultivated area is still not resolved the main problem – the transfer to the agricultural insurance system the main part of the load on the compensation of farmers in case of emergencies, as is happening in countries with developed agricultural insurance”, – said the expert.

According to him, it is possible to solve only by diversifying the insurance programs for different segments of agrobusiness and regional conditions. So, NSA has proposed to introduce a social insurance program the direct costs in case of emergencies. It should cover more than half of the farmers.

Now Russia has multischema system of agricultural insurance. Regardless of when the happened insured event (extreme weather, disease, etc.), compensation for the growers is paid at the end of selhoztehnika in that case, if the results of the harvest indicated a decline in yields. The system of agricultural insurance subsidized by the GOV’t��rstem. Last year on these purposes it has been allocated 1,5 billion roubles. This year the crop was laid 2.2 billion rubles. The Ministry of agriculture expects that before the end of the year will be able to insure not less than 6.2 million hectares of agricultural land (against 4.3 million hectares last year) and at least 7.4 million heads of farm animals (6.4 million heads in 2019).