The State Will Compensate Up to 60% of Crop Insurance Costs for Farmers

A new support program for farmers has been introduced in Ukraine — agricultural insurance, which provides significant reimbursement of crop insurance costs by the state.

This is reported by AgroReview

Requirements for Recipients and Participation Conditions

To receive state compensation, agricultural producers must register in the State Agricultural Register (SAR). Additionally, they must undergo a verification process to ensure they are not on sanctions or terrorist lists and have no connections with residents of the Russian Federation, the Republic of Belarus, or other high-risk jurisdictions.

The amount of compensation depends on the region where the agricultural producer operates: those working in frontline communities will receive up to 60% of the insurance premium cost, while other farmers will receive up to 45%.

Procedure for Contracting and Submitting Applications

To take advantage of the program, a farmer must sign a contract with an insurance company that has the appropriate license approved by the National Bank of Ukraine. After paying the insurance premium, an application for compensation must be submitted in the established form. Currently, the following companies are participating in the program: JSC “Insurance Company ‘INGO'”, PJSC “Insurance Company ‘Universal'”, and IC ‘VUSO’.

The insurance products cover winter grain crops — wheat, rye, barley — and are contracted for the following periods: wintering, the entire growing cycle, or the spring-summer season. Clear deadlines for contracting are set for each product:

• spring-summer period — from March 10 to May 30;
• wintering period — from October 15 to December 20;
• full growing cycle — from September 1 to January 20 of the following year.

Depending on the contracting period, applications for compensation are accepted until April 1, August 1, or November 10.

The list of recipients is compiled by insurers and submitted to the Ministry of Economy, after which payments are made through the State Fund directly to the accounts of the insured parties.

“Agricultural insurance is not just a financial instrument, but an important mechanism for stability for farmers working in extremely challenging conditions, especially in frontline areas. For the first time, the state is systematically compensating part of the insurance premiums to significantly reduce the risks of crop loss, ensure production predictability, and strengthen the financial stability of farms. In fact, we are forming a modern system for managing agricultural risks and creating additional guarantees for the continuous operation of the Ukrainian agricultural sector,” emphasized Minister of Economy Taras Vysotsky.