The law will enter into force on July 01, 2021, and compensation payments will begin to apply from July 01, 2022.
We are talking about the possibility for farmers to conclude more affordable insurance contracts with state support, compensation for which can be obtained if an emergency regime is officially declared in the region, resulting in the loss or destruction of the crop.
The main goal set by the working group on the preparation of the document, according to its head, deputy Alexei Lavrenenko, is «to prevent a situation when the peasant has insured himself only against drought, and the fields have been beaten by hail, and insurance is not required.»
Some of the insured farms found themselves in just such a situation last year.
This document legally defines the concept of a emergency natural.
The law also increases the size of the state subsidy, which in the first year will be the same for all policyholders: 80%, and then it will gradually decrease.
For small farmers:
until 2023 — 80%, then an annual decrease of 10%.
Thus, by 2025 they should reach the level of 50%.
For large farms:
The decline will be faster, and they will reach the 50% level by 2024.
The damage assessment methodology will also change, which will allow avoiding the lengthy risk assessment procedure.
Part of the premium that insurers receive from the conclusion of agricultural insurance contracts will be transferred to the emergency compensation fund.
The amount of such deductions will be established by the association of insurers for a year, but cannot be less than 5%.
In general, the law is aimed at restoring the insurance system with state support, which experienced a serious recession after the abolition of subsidies in a number of regions and the introduction of the concept of a “single subsidy”.
In 2019 — 2020 (a period of some upsurge), the insured area increased fivefold: from 1.2 million hectares to 5.6 million hectares.
But this is only 7% of the cultivated area.
In 2021, an increase of up to 8-10% is possible.
The purpose of the adopted document is to increase the area of insurance coverage to at least 30% by 2023 — 2024, as well as create conditions that will allow small and medium-sized businesses to more actively join the agricultural insurance system.
