To prevent the increased damages to agricultural production due to various climatic events and natural disasters, the Agricultural and Rural Development Agency (ARDA) is urging farmers to enroll in the state-subsidized agricultural insurance program.
As of April 2020, the number of policies issued under the program coverage was equal to 7,990, which is 40%higher than for the same period a year ago. The area insured reached more than 7,544 ha and the sum insured exceeded GEL 74 million (~23.3 million USD).
For all crops the premium subsidy remains 70%, and for vines – 50%. The insurance policy covers the following risks: hail, floods, hurricanes, autumn frosts.
Only officially registered land plots with the Public Registry are subject to subsidized insurance cover. All individuals or legal entities renting agricultural production land of up to 5 ha (in case of wheat no more than 30 ha) can participate in the crop insurance program. This restriction does not apply to agricultural cooperatives. In the case of an agricultural cooperative, the amount of the state-subsidized premium provided by ARDA to the insurer shall not exceed GEL 50,000 (~15,700 USD).
The state-supported agricultural insurance program has been operating since 2014. To date, the total indemnity paid to the farmers for the duration of program existence over the past six years (2014-2019) has amounted to GEL 38,252,017 (~12 million USD).
Georgian state subsidy levels change since 2014:
2014 – average 93.7% (agricultural insurance program was officially started on September 1, 2014)
2015 – all crops 60%, 40% for vines (average 55%)
2016 – all crops 70%, 50% for vines
2017 – all crops 70%, 50% for vines
2018 – all crops 70%, 50% for vines
2019 – all crops 70%, 50% for vines
2020 – all crops 70%, 50% for vines
Source – https://agroinsurance.com