Russia is working on insurance programs in the fruit and vegetable sector

Russia is working on insurance programs in the fruit and vegetable sector


Interindustry group will develop insurance programs suitable for the needs of agricultural producers of fruits and vegetables

The National Union of Agricultural Insurers of Russia (NSA) and the National Union of Fruit and Vegetable Producers of the Russian Federation (“Fruit and Vegetable Union”) have agreed to create a joint group of experts to address issues arising in the field of insurance of horticulture and the fruit and vegetable sector in general. The group will be formed in the coming month, the press service of the NSA told

At the meeting, which was attended by the President of the NSA Korney Bizhdov, Director of the Fruit and Vegetable Union Mikhail Glushakov, experts of the two unions and representatives of agricultural production, the parties discussed mechanisms of interaction on the development of insurance in the fruit and vegetable sector and the continuation of joint practical work on the organization of such insurance.

“The meeting was a response to the situation with unprecedented losses of the horticultural industry in the South of Russia this year due to spring frosts. An inter-sectoral expert group, which is to be formed in the next month, will have to develop insurance programs suitable for the needs of farmers-producers of fruits and vegetables, as well as prepare proposals for amending regulatory legal acts that are necessary to include such programs in the agricultural insurance system with state support , – comments the president of NSA Korney Bizhdov. – The expert group should be expanded: we look forward to the participation in this process of agricultural unions, business representatives developing production in the field of horticulture and viticulture.

In the spring of 2020, during the flowering period of orchards in the regions of southern Russia, frosts were observed with temperatures dropping to minus 10 degrees in certain areas. In the following months, some of these regions also experienced storm events, which negatively affected the state of orchards and vineyards. The total damage reported by the horticultural farms of the South and North Caucasian Federal Districts in the first weeks after the events was estimated at about 5 billion rubles. The maximum damage noted for one agricultural enterprise reaches 1.48 billion rubles – the large horticultural enterprise that announced it has lost not only its harvest, but also plantations that have died on an area of ​​630 hectares.

Losses incurred by gardeners were not insured: at the time of the frost in Russia, only 2.1 thousand hectares were provided with insurance coverage under perennial crops. This caused agrarians to appeal to the state about the possibility of providing assistance. In early May, the National Fruit and Vegetable Union, the Kuban Gardeners Union, the Association of Nurseries and Gardeners of the Stavropol Territory addressed the Chairman of the Federation Council Valentina Matvienko with a joint request for state financial support for fruit producers in connection with the consequences of frost in the South and North Caucasian Federal Districts. The NSA supported the appeal of gardeners, while at the same time emphasizing the need for the immediate development of insurance coverage.

See also: Russia: agricultural insurance will become easier and more affordable for small farmers

“After the observed losses, in horticulture and viticulture, there is now an intensification of demand for insurance of perennial plantations with state support – as of August, 3.8 thousand hectares of orchards and vineyards were already insured in the country,” comments NAA President Korney Bizhdov. – In 2019, at the request of the Krasnodar Territory Administration, the NSA developed 4 standard insurance programs for orchards and vineyards against the main risks that can be offered to agrarians by insurers on subsidized terms. However, this is still not enough for the systemic protection of the industry. In addition, discussion with gardeners showed that the current conditions of agricultural insurance do not fully meet the needs of modern gardening, especially intensive gardening, and, moreover, the risk of loss of product quality, which is critical for this production, is not taken into account. All these points require adjustments to the legislation and the regulatory framework of agricultural insurance, the development of new programs, which requires practical interaction of the insurance industry with farmers. Industry statistics, information on production cycles, sources of risks, signs of crop loss, and so on are needed. For this, an expert group is being created now. “

“In industrial horticulture and viticulture, especially if it is an intensive type of horticulture, the nature and extent of exposure to risks is comparable to the risks of a large livestock complex,” emphasizes Korney Bizhdov. – The rather high probability of very large catastrophic losses leads to the fact that the insurance of gardening risks cannot be low in cost. Therefore, state support is of great importance, when the state helps to pay part of the cost of insurance. “


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