Government will subsidise agriculture insurance premiums this year too

The Government will continue subsidising 80% of the insurance premiums in agriculture as last year in a move to stimulate the signing of contracts for insuring the agricultural products and to help overcome the consequences of last year’s drought. The Government made such a decision at its meeting on January 30, Info-Prim Neo reports. Prime Minister Vasile Tarlev stressed that the state must provide such support to the farmers during at least five years. He said that the agricultural producers in 2006-2007 expressed an increased interest in insurance and this was mainly due to the Government’s initiative to increase the subsidisation level to 80%. The subsidies will be provided on one condition - the beneficiaries must enter into direct contracts with the insurance operator. The broker intermediation is not accepted. The Premier said that such a condition will contribute to a more efficient and focused utilisation of the subsidies allocated by the state in the area. He also said that the brokers charge commission from the total insurance premium and this means from the state contribution, too. Minister of Agriculture and Food Industry Anatolie Gorodenco said that 160 insurance contracts were signed in 2006, but in 2007 the number of contracts rose to 250. To cover 80% of the insurance premiums in 2007, the state must pay 20 million lei. But the agriculture subsidisation fund includes only 15 million lei for the purpose. Until November 2007, the farmers received over 8 million lei in insurance. A sum of 18 million lei was planned in the agriculture subsidisation fund for paying insurance premiums in 2008. This is by 3 million lei more than last year. According to Gorodenco, the farmers are now insuring their autumn crops – the multiannual plantations - against excessive drought, hail, winter and spring frosts. The number of applications for insurance from agricultural producers is on the rise, Gorodenco said, quoted by Info-Prim Neo.