Agra Asigurări, the national leader in agricultural insurance, announces the launch of a new insurance product dedicated to field-grown vegetable crops, designed to offer farmers additional financial protection against climate risks, particularly hail.

This initiative comes at a time of significant challenges for Romanian horticulture, a sector that, according to the National Institute of Statistics (INS), recorded a decline of over 10% in vegetable production in 2024 compared to the previous year, due to unfavorable weather conditions and atmospheric instability. At the same time, the area under vegetable cultivation has been declining over the last decade, accounting for approximately 2-2.5% of Romania’s arable land. Under these conditions, farmers’ vulnerability to hail and summer storms has become a major obstacle to the stability and profitability of vegetable farms.

Against the backdrop of increasingly frequent extreme weather events affecting vegetable production, the new policy offers farmers an essential financial safety net. In a horticultural sector that is vital to the local economy, this solution directly addresses Romanian producers’ need for stability and predictability.

The insurance coverage covers production losses caused by hail damage to insured vegetable crops, as well as certain quality losses. Also, if crops are affected in the early stages, the policy can cover the costs of re-establishing the crop or returning it, depending on the extent of the damage. The insurance includes clear mechanisms for assessing damage and awarding compensation.

The product covers a wide variety of crops, including onions, green onions, pickling cucumbers and field cucumbers, root vegetables, bell peppers for consumption, paprika peppers for industrial use, tomatoes for fresh consumption or industrial processing, eggplants, melons, and cabbage.

“The horticultural sector is increasingly exposed to climate risks, and farmers need effective tools to protect their investments. By launching this insurance dedicated to field vegetables, we aim to offer producers a solution adapted to the realities on the ground and financial security in the face of unpredictable events such as hail,” says Horia-Adrian Lupu, general manager of Agra Asigurări.

“This sector is extremely dynamic, but also vulnerable to extreme weather events. With this product, we want to offer farmers a tool that helps them better manage risks and continue their operations even after severe events. At the same time, developing such solutions is part of our strategy to support Romanian agriculture through insurance products tailored to the specificities of each agricultural sector,” he adds.

Andrei Trofin, regional manager for the Central region at Agra Asigurări, emphasizes the importance of this product for producers in the horticultural sector: “Farmers who grow vegetables in the field face high risks during the growing season. The new insurance product gives them the opportunity to better manage these risks and protect their investments in a sector where every stage of production is essential.”

“In our ongoing discussions with producers in the field, we are seeing a growing need for protection solutions tailored to the realities of agriculture. Weather events can quickly affect crops, and farmers need the assurance that they can recover part of their investment. With this insurance, we offer them a concrete tool for protection and stability for their business,” adds Andrei Trofin.

With the launch of this new insurance product dedicated to field vegetables, Agra Asigurări is expanding its agricultural product portfolio and strengthening its role as a partner for Romanian farmers. The company aims to offer specialized risk management solutions tailored to each crop type and specific agricultural conditions.

The new product supports producers who want to protect their investments, stabilize their income, and continue their operations even in the face of severe weather events. Through such initiatives, Agra Asigurări contributes to the development of a more resilient agricultural sector better prepared to address current climate challenges. The company is strengthening its commitment to supporting Romanian agriculture by providing specialized risk management solutions tailored to different crop types and farmers’ needs.

Source - https://business-review.eu