Harvest Insurance in Ukraine

by Evgeny Lazorenko
Thursday, December 9, 2021
Harvest Insurance in Ukraine

Harvest insurance for farmers will be cheaper and more profitable thanks to government support

Farmers will receive state support in cheaper insurance payments when insuring their agricultural products.

"Today, the government has adopted important regulations for farmers to help protect them from adverse weather scenarios of crop loss. From now on, they will have state support in the form of compensation, which according to the approved procedure will amount to 60% of the value of actually paid insurance premiums," said the minister of agricultural policy and food of Ukraine, Roman Leshchenko.

These resolutions will provide an opportunity to provide state support to agricultural producers by reducing the cost of insurance payments for the insurance of farming products.

Agriculture is a priority for many countries, including Ukraine. Ukraine's agricultural sector plays an essential role in the structure of the national economy. Despite the favorable climatic conditions for agricultural production, agriculture in Ukraine annually suffers 19 from dangerous natural phenomena and adverse weather conditions, affecting reduced yields, shortage of gross crop production, resulting in losses to farmers. Agricultural production is one of the riskiest sectors of the economy. But investment interest in the agricultural market is growing every year.

The system of risk insurance in the agricultural sector in developed countries, where the state plays a leading role in supporting agricultural producers, is a well-established and well-functioning mechanism. Government support is a more effective way to stabilize farmers' incomes than financial assistance provided to them in specific adverse years in the form of additional loans, subsidies, offsets, and debt write-offs, deferrals of payments, and direct monetary compensation.

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