The Government approved amendments to the Law on Subsidized Insurance of Agricultural Production Risks, by which the state subsidy is reduced from 50% to 40% of the insurance premium. There was also set a ceiling of 700,000 lei for insuring the sugar beet and of 500,000 lei for insuring the other crops and the animals, IPN reports.

Minister of Agriculture and Food Industry Vasile Bumacov explained that the number of applications for subsidies for insuring risks in agriculture has increased considerably over the last few years. Subsidies of 16 million lei were provided in 2010, while in 2013 the figure almost trebled, amounting to 45 million lei.

The subsidies are set based on a coefficient that is determined by dividing the money available in the subsidization fund to the total value of the accepted applications. The diminution of the subsidy to 40% of the insurance premium and the institution of a ceiling will considerably reduce the absorption of the fund.

When signing the insurance contract, the agricultural producers will present a certificate showing that they own the insured property and will pay 60% of the insurance premium stipulated in the insurance contact.