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agriculture insurance contracts

Russian agriculture insurance contracts decreases

In 2017, most farmers in Russia will suffer losses due to poor harvest, as the spring and summer was extremely cool and rainy. The damage could reach 2.6 billion rubles (about 37 million EUR), according to the National Union of Agribusinesses.

According to Bank of Russia, approximately 20,000 agriculture insurance contracts were concluded in the first three months of this year, which is 20% less than in the same period last year. Since this year the crop is insured by significantly fewer farms than an year earlier, the insurers believe that losses may remain at the expense of the state budget.

In Russia in 2013, a state support program for farmers is in place, where the state subsidizes insurance premiums.

Agro-insurance is blocked because of a reform in the sector where unified regional subsidies for agriculture have been introduced, but the normative basis for the work of the new law has not yet been adopted.

About James McGovern

James McGovern is from Arizona, USA. He is business analyst and writer at Finance Apprise Journal, responsible for finance and trading sections, as well as news from USA and Canada.

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