New law ensures agricultural producers protection against risks

An Agricultural Insurance Fund will be established to protect producers from various risks and ensure stable income. This was discussed today, March 17, during the fifth plenary session of the Senate in connection with the debate on the law “On Agricultural Risk Insurance.”

It was noted that while the sector widely employs practices for insuring against credit default risks, such insurance mainly serves to guarantee the repayment of preferential loans, leaving crop yields uninsured.

The proposed law comprehensively addresses all issues related to agricultural risk insurance and establishes directly applicable regulations.

“For instance, the creation of an Agricultural Insurance Fund is envisaged to safeguard producers against various risks and guarantee stable income,” the report states.

Additionally, the law specifies that independent experts will assess insurance losses and determine the amount of damage caused by insured events.

The draft law also envisions state support mechanisms for agricultural risk insurance. Specifically, the state will cover 50% of insurance premiums. If the Agricultural Insurance Fund’s resources are insufficient to compensate for damages from insured natural disasters or other risks, the remaining amount will be covered by the state budget.

The rights and responsibilities of participants in the insurance process are also outlined in the draft law.

Following discussions, the law was approved by senators.

As a reminder, on February 14, the President signed a decree on “Measures to Improve the Support System for Business Projects Aimed at Promoting Youth Entrepreneurship and Ensuring Their Employment,” which also provided for the establishment of the State Targeted Fund for the Development of Youth Entrepreneurship.