The number of farmers participating in the state agricultural insurance program in Georgia increased by 40%


The number of farmers participating in the state agricultural insurance program in Georgia increased by 40%

05/29/2020

The state agricultural insurance program, which is part of the United Agricultural Project implemented by the Agency, has been implemented in Georgia since 2014.

The number of farmers participating in the state agricultural insurance program in Georgia, as of May 15, 2020, increased by 40% compared with the previous year, the Georgian Rural and Agricultural Development Agency (ARDA) said.

According to ARDA, this year, as in previous years, the issuance of insurance policies under the state program began in April. The number of insurance policies issued for a month and a half amounted to 7990, the crop was insured with a total value of over 74 million lari ($ 23.2 million) in 7 544 ha of the territory.

The state agricultural insurance program covers the following insurance risks: hail, floods, hurricane, as well as autumn frosts (in the case of citrus fruits). A farmer can get a policy under the program in any of the insurance companies – its participants (currently there are 7 such). At the same time, 70% of the cost of the policy (only in the case of grapes – 50%) will be covered by the state, the rest should be paid by the farms themselves.

See also: Georgian farmers are increasingly using the state agricultural insurance program

It is noteworthy that if earlier the validity of the insurance policy was a maximum of 1 year (taking into account the crop cycle), then the changes made to the state program as part of the anti-crisis plan approved by the government of the country allow the farmer to purchase two- and three-year policies in case of insurance of perennial crops payment of the cost in stages, after the harvest of each crop).

Any individual or legal entity who has decided to insure the crop on its agricultural plot with an area of ​​not more than 5 hectares (in the case of wheat – not more than 30 hectares) can become a beneficiary of the program. At the same time, the beneficiary has the right to insure several crops grown by him with one policy, and to purchase separate policies for each crop. A mandatory requirement for the beneficiary is that his land must be registered with the National Agency of the Public Register, and he himself – in a special register of farms / farmers of the Ministry of Agriculture. The area limitation does not apply to agricultural cooperatives, however, the upper limit for state co-financing of the insurance premium has been set in relation to them – no more than 50 thousand lari ($ 15.7 thousand) per policyholder.

The state agricultural insurance program, which is part of the United Agricultural Project implemented by the Agency, has been implemented since 2014. During the program, farmers were paid 38 million 252 thousand lari ($ 11 million 991.2 thousand) as compensation for losses.

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