Farmers are encouraged to apply risk management measures by compensating part of the premium paid for crop insurance. Applications for this support, provided under the Lithuanian Agriculture and Development 2023-2027 strategic plan (SP) intervention measures “Crop, plant and animal insurance” activity area “Crop and plant insurance premium compensation” are accepted from March 1. until June 30 in the administrations of the municipalities where the applicant’s agricultural holding is registered.
Felt the benefits of insurance
“I started banning crops not so long ago. This year will be only the third season, but last year, when the fields were devastated by a huge hailstorm, I felt the benefits of insurance. About 40 percent I hadn’t harvested the crops yet. In some fields, the elements destroyed about 90 percent of the fields. crops grown in them. The insurance protected the farm from huge losses, as the payments received almost covered the amount that I would have received for a successful harvest, Gedas Špakauskas, a farmer in the Pakruoj district, shares his experience. – Previously, I did not insure crops, but the increasing frequency of natural disasters, from which farmers suffer here and there, changed my approach to insurance – there are no guarantees that they will not enter your fields next time. Crop insurance in a changing climate is very beneficial for farmers, especially those with financial obligations.”
According to the VH Lietuva branch of the German mutual insurance fund “Vereinigte Hagel”, only in 2023 The storm and hail that broke out at the beginning of August caused more than 10 million losses to Lithuanian farmers who had insured their crops. EUR losses. More than 28 thousand were damaged. ha of crops. Due to last year’s summer drought, out of 9.6 thousand ha of insured crops, the owners of about half of them applied to the aforementioned insurance company for damage assessment.
All residents, business entities and operators of the institution, who have suffered damage due to a crisis or emergency situation, can apply for state support in accordance with the procedure established by the Government of the Republic of Lithuania. According to the established procedure, state support cannot exceed half of the amount of the damage, if insurers offered property insurance services on the market against the damage for which state support is requested, but these services were not used, before the day the damage occurred. Therefore, it is important for agricultural entities to manage risks themselves and to insure crops with the support of SP.
Insurance is encouraged by compensation
According to farmer G. Špakauskas, compensation of part of the insurance premium also encourages crop insurance. “Insurance is not a source of income, but a risk management tool that helps to preserve the viability of the farm and protect against large losses. However, if crop insurance premiums were not reimbursed, it might be more difficult to decide to insure crops, especially as premiums increase. Last year I paid about 6 thousand for crop insurance. euros, this year the contribution will reach about 8 thousand. However, when part of the premium is compensated, crop insurance against the possible consequences of natural disasters no longer seems like a big financial burden,” says the interviewee.
According to the activity area of the SP intervention measure “Crop and plant insurance premium compensation”, support is provided for crops and/or plants owned by the owner on the date of entry into force of the insurance contract and declared in the current year.
The amount of support is calculated based on the highest rates of insurance premiums per 1 ha of declared area according to plant types and insured risks.
Up to 70% is compensated. paid insurance premium amounts.
in 2024 more than 2.271 million was allocated for the application period. EUR support funds.
Supported activities and potential applicants
This SP intervention measure support is provided to applicants, in any selected insurance company against drought (drought during the vegetation period of plants in accordance with the order of the Minister of the Environment) and/or those insured against the risk of frost for supported cultivated crops and/or plants, the cultivation of which is paid according to the procedure established in the Direct Payments Rules direct payments, compensating part of the insurance premium paid by the farmer.
Part of the insurance premiums is compensated for natural and legal persons engaged in agricultural activities that meet the requirements of an active farmer, and who have registered the holding in their own name. This support is not provided to persons who are subject to bankruptcy proceedings or whose activities are being liquidated.
An insurance contract is considered valid if it provides for the coverage of losses when more than 20 percent is destroyed due to drought and/or freezing. farmer’s average annual production.
The application for support is submitted before incurring the costs of paying insurance premiums to the insurance company.
for No. 2024/08
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– 2024-04-11 06:30:54
