The Government approved a bill to increase the level of subsidization of insurance premiums in agriculture from 50% to 70%. The bill extends the areas covered by the law by offering the possibility of subsidizing not only the quantity, but also the quality of the harvested crops, IPN reports.
Minister of Agriculture, Regional Development and Environment Ion Perju said the proposal was formulated because the occurrence of the insured risk in agriculture not always leads to quantitative losses of the harvest, with only the quality being affected. In such cases, the insurer does not have the right to pay damages to the agricultural producer. Most of the times, the poor quality of agricultural products makes sale impossible and the agricultural producers as a result suffer losses.
The budget needed to cover the subsidization of insurance premiums for 2021 was estimated at 3.5 million lei, for 2022 at 4.1m lei, for 2023 at 5m lei, while for 2024 at 6m lei.
