In the first 11 months of 2022, Russian farmers insured 6,3 million hectares of crops under state support, according to the results of the National Union of Agricultural Insurers. “The achieved coverage is now the maximum in the agricultural insurance system with state support. At the same time, the data for the year will still be adjusted upwards, as information on the autumn sowing campaign becomes available,” said NSA President Korney Bizhdov.
“The target figure of the Russian Ministry of Agriculture for the coverage of crops with insurance for 2022 was 6,2 million hectares. It has already been completed,” the President of the NSA emphasized.
For comparison, a year earlier, by December 1, the crop insurance indicator was almost 5,4 million hectares. Thus, in comparison with the same period last year, the growth of insured areas amounted to 16%.
The structure of areas insured this year is dominated by the use of a multi-risk insurance program, but almost 2,3 million hectares have already been insured under the new crop insurance program in case of loss due to emergencies, which was introduced for the first time since this year.
“Both programs are important for farmers and show their relevance. Multi-risk insurance compensates for the decrease in crop yields on the farm in the event of natural risks, while the new program is designed to compensate for the direct costs of cultivating each hectare of crops, if their loss is officially confirmed as part of the procedures of the officially declared emergency regime, ”explains Korney Bizhdov, President of the NSA .
“In 2023, the Russian Ministry of Agriculture introduced new significant measures to stimulate insurance in crop production. In addition to increased support per hectare, the presence of an insurance policy will also affect the amount of subsidies for the production and sale of grain. Subsidies for planting and caring for new vineyards have also been increased, provided they are insured. These measures are already additionally influencing the increased demand of farmers for insurance coverage, - explains the President of the NSA Korney Bizhdov. – NSA also sees other incentives for farmers to use insurance instruments more actively. The agro-climatic situation may turn out to be less favorable next season. In particular, in a number of regions, due to autumn waterlogging, the sowing dates for winter crops were shifted. At the same time, the price situation in the food market does not look definite now - food prices in the world decreased in the second half of the year, the prospects for the next year are not clear. The importance of insurance as a tool to ensure the financial sustainability of crop farms in these conditions will increase.”