State will subsidize agricultural risk insurance premiums until 2012

The term for subsidizing the agricultural risk insurance premiums that was to expire in January this year will be extended until December 31, 2012. The Cabinet approved a relevant amendment at its meeting on April 8, Info-Prim Neo reports. The initiative was proposed by MPs Serafim Urecheanu, Vasile Balan and Ion Plesca. The authors said the farmers should have access to the agriculture subsidization fund in continuation. The Cabinet rejected the proposal to increase the subsidy to 80%, arguing that the state budget for this year cannot cover the costs estimated at 17 million lei. “We should not promise if we cannot fulfill our obligations. In the future, if we have larger budget revenues, we will discuss this issue again,” said Minister of Agriculture and Food Industry Valeriu Cosarciuc. Thus, the state will subsidize 60% of the agricultural risk insurance premiums in the case of multiannual plantations, sugar beet and vegetables and 50% of the premiums in the case of other crops and animals. Seventy-five agricultural risk insurance contracts were signed in 2009. The State provided subsidies of 4 million lei of the total 25 million lei allocated for the purpose.