Since this year, a new system of insurance for farmers has been launched in the Russian Federation. The state is constantly expanding the scope of its support.
For example, 3.5 billion rubles were allocated to support crop insurance in 2021, 4.5 billion in 2022, and 5.3 billion are planned for next year.
The increase in funding is a consequence, among other things, of the fact that insurance is beginning to be popular with farmers.
How does the new insurance system work?
Its principles differ significantly from what was under the old system.
Dmitry Rylko, Director General of the Institute for Agricultural Market Studies, noted that previously companies mainly received payments from the state if a state of emergency was introduced in the region as a result of weather conditions.
This led to a number of difficulties.
In particular, enterprises did not have an incentive to insure their premises: “after all, if anything happens, the state will pay anyway.”
However, this approach created a lot of uncertainty: the state of emergency might not have been declared, even if, in fact, all the crops were destroyed.
In addition, it was not known in advance how much payments would be made, how the damage would be assessed.
The answer to all this was the creation of a new unified insurance program with state support. It implies that the insured company will receive payments in any case, even if no emergency regime has been declared and only one field has been affected.
At the same time, both the amount of the payment and how the damage will be assessed are known in advance.
In addition, the state helps: it currently subsidizes 80% of payments. However, over time, this ratio is planned to be reduced to 50%.
The new insurance program has other benefits as well.
For example, the cost of insurance is relatively small. In addition, in case of damage, you can count on compensation in the shortest possible time: about 10 days, while the standard period is about a month.
At the same time, insured farms will receive larger subsidies than those who refused this tool.
Farmers use insurance more often
This year, about 1.5 million hectares were insured throughout Russia. This is not so much, about 7% of the sown area, but the good news is that this figure is growing every year.
As for animal husbandry, insurance in this segment is even more developed: today 33% of animals are insured.
In a number of regions, for example, in the Belgorod and Bryansk regions, this figure is even higher: 60% and 90%, respectively.
At the same time, only the most trusted insurance companies have the right to work with farmers, which increases the reliability of the insurance tool.
