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Georgia - Farmers to have access to three-year agricultural insurance

Farmers will now be able to insure their perennial plants for up to three years and annual plants for one year with the help of a state agricultural insurance programme, says the Agriculture and Rural Development Agency.

The government will finance 70 percent of the insurance premium, while the remaining 30 percent will be covered by farmers. Grasper farmers will be able to rely on the government for co-financing of 50 per cent of the insurance premium.

The agricultural insurance programme went into force on September 1, 2014 and is meant to develop the insurance market in the agricultural sector, promote agricultural activities, retain income for individuals who are employed in the agricultural sector and reduce risks associated therein. Farmers can purchase insurance to avoid the following insurance risks: hail, flood, storm and autumn frost.

Until 2014, there was no mechanism by which farmers could protect their crops from climatic risks. Under the agricultural insurance program, insurance has become available to those farmers who have a small farm and need state support the most. From 2014 to date, the reimbursed damage to farmers over the past six years has amounted to 38,252,017 GEL ($11,948,528/€10,985,014),” notes the announcement of the Agriculture and Rural Development Agency.

Individuals and legal entities which own agricultural land no larger than five hectares (if wheat, then no larger than 30 hectares) can subscribe to the programme. This restriction does not apply to agricultural cooperatives.

However, for agricultural cooperatives, the premium share paid by the Agriculture and Rural Development Agency should not exceed 50,000 GEL ($15,618/€14,359).

The insurance comes into force after the insured person pays their share of the insurance premium. When insuring perennial plants, the insured person should pay their share of the insurance premium to insure plants of the next year until December 31 of the ongoing year.

The insurance can be used for crops grown on land which is registered in the National Agency of Public Registry.

Source – https://www.agenda.ge