Farmers in the Far East will receive preferential terms for crop insurance in case of death from emergencies. This measure was announced by Prime Minister Mikhail Mishustin at a meeting of the Russian Government on November 29, the press service of the National Union of Agricultural Insurers reports.
Speaking about support for farmers working in the Far East, Mikhail Mishustin said: “The climate there is not easy, and agricultural producers are constantly faced with significant risks, including floods, fires, and other natural phenomena that occur in this federal district more often than on average. country. The government promptly helps the victims and responds to any emergency situations. But it is more effective in such cases to use the agricultural insurance mechanism, especially for farmers, cooperatives and other small forms of farming. On behalf of the President, we are improving legislation to help such agribusiness in the Far East reduce possible costs from losses when a state of emergency is declared and we are increasing the amount of subsidizing the cost of an insurance policy from 50 to 80%.”
In addition, the Government provides for additional measures for the Far Eastern Federal District: simplification of the calculation of the amount of the subsidy in cases where the object is insured against several disasters. The conditions for concluding such an agreement with respect to perennial plantations, including orchards, industrial and fruit crops, are also specified.
“We hope that these measures will help stimulate small businesses in the district to more actively enter into agricultural insurance contracts with state support and protect their business from emergencies,” said Prime Minister Mikhail Mishustin.
“Crop insurance coverage is in high demand in the Far East. This region, due to its monsoonal climate, is regularly exposed to destructive weather events associated with floods and storms. There is a noticeable demand for an insurance program in case of emergencies, which guarantees quick compensation for losses within the direct costs of cultivating each lost hectare. An emergency regime with damage to the agro-industrial complex in a particular agricultural region of the Far Eastern Federal District is announced annually,” commented the President of the NSA Korney Bizhdov.
According to the National Union of Agricultural Insurers, as of November 01.11.2022, 1, the Far Eastern Federal District ranks 430st in Russia in terms of coverage of crops with insurance protection. 20 thousand hectares of crops are insured in the Okrug, which is 128% of the cultivated arable land. This is the highest figure in Russia. Of these, more than XNUMX thousand hectares are insured under the emergency insurance program, which was launched for the first time this year.
“Currently, the agricultural insurance system provides for two crop insurance programs - a multi-risk program to protect against events that can occur only in the fields of the farm, and a crop insurance protection program in case of loss as a result of a declared emergency. The second program started in 2022, and at its launch, it was provided for subsidizing the cost of the policy for the agrarian in the amount of 80%. Starting next autumn, the level of state support for emergency insurance will gradually decrease every year until it reaches 50%. But Far Eastern farmers will always pay only 20% of the cost of such insurance,” explained Korney Bizhdov.
Most actively in the Far East, crop insurance is used in the Primorsky Territory, where 223 thousand hectares are insured, of which almost 44 thousand hectares are crop insurance in case of emergencies; in second place is the Trans-Baikal Territory (121 thousand hectares, of which 42 thousand are insurance in case of emergencies), 54 thousand hectares are insured in the Amur Region (43 thousand are in case of emergencies), 26 thousand hectares are in Buryatia , less than 10 thousand hectares - in the Khabarovsk Territory and Yakutia.
In Primorsky Krai, this year, the first emergency insurance payment was made - for the soybean crop that died as a result of the catastrophic typhoon Hinnamnor, the farm received 5 million rubles. The payment was made by the RSHB-Insurance company, the farmer received the funds 8 days after submitting an application to the insurance company. “NAIA is counting on an increase in demand for this insurance program, and maintaining a high level of subsidies will guarantee that such insurance will be available,” said Korney Bizhdov, president of the NAIA.