Insurance for farmers may include the concept of an emergency

They want to give agricultural producers the opportunity to conclude agricultural insurance contracts with state support in case an emergency regime is introduced in the region. Bill No. 1061078-7 is planned to be considered in the first reading at the plenary sessions of the State Duma.

The law under discussion introduces the concept of an emergency situation for agricultural insurance. Farmers will be able to conclude even more affordable agricultural insurance contracts with state support in the event of an emergency regime being declared in the region, as well as receiving insurance compensation in the event of an insured event as a result of an emergency.

The law on state support in the field of agricultural insurance is proposed to be supplemented with new concepts “complete loss (death) of the crop crop” and “complete loss of viability of perennial plantations”. Insurance payments will bring as close as possible to compensation for damage to agricultural producers caused by natural emergencies.

Rosstat: production in RUSSIA

The document also proposes to increase the amount of the subsidy for paying part of the insurance premium when insuring against the risk of loss of crops or planting of perennial plantings as a result of natural emergencies. For small agribusiness, it will be 80% of the insurance premium. For other producers of agricultural products, the amount of the subsidy in the first year will be the same, but from 2022, an annual reduction in the amount of state support to 50% of the insurance premium is envisaged. It is also proposed to form a fund for compensation payments in case of emergencies at the expense of deductions by insurers of a part of insurance premiums received under agricultural insurance contracts.