Support conditions for agricultural insurance have changed

As farmers' interest in crop and animal insurance has noticeably grown and the conditions for this type of insurance and the source of support financing have changed, the government on Tuesday, August 25, approved changes to the regulations on granting state and European Union support for insurance in the 2014–2020 planning period and to the regulations on state support for agriculture.

Until now, agricultural insurance in Latvia has been financed from state subsidies, but in the new planning period – 2014–2020 – it will be financed from EU support money. Therefore, the Rural Development Programme (RDP) provides for a support measure for crop, animal and plant insurance.

The “Regulations on the Granting of State and European Union Support for Crop, Animal and Plant Insurance in the 2014–2020 Planning Period” provide that 65 percent of the eligible costs of purchasing an agricultural insurance policy will be compensated in the future instead of the previous 50 percent, if all the conditions regulated in the regulations are met, including the farmer's deductible. To receive support, the farmer will have to submit an application to the Rural Support Service, and after its approval - a copy of the insurance policy, as well as copies of payment documents confirming the payment of the premium.

It should be noted that the regulations also provide for alternative support for producers of primary agricultural products of up to 50 percent, but not more than 50 euros per unit of cattle, for those farmers who have insured their productive farm animals against risk factors that are not foreseen. Regulation No. 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD).

In order to prevent the possibility of double funding or overlapping of legal provisions in one type of support measure, amendments have also been made to the Cabinet of Ministers Regulation No. 1524 of 17 December 2013 “Regulations on State Support for Agriculture”. This year, in the aforementioned regulations, submission of applications for the crop and animal insurance measure will take place from 15 September to 1 October, but in the future this will be possible in accordance with the “Regulations on the Granting of State and European Union Support for Crop, Animal and Plant Insurance in the 2014–2020 Planning Period”.

The total funding for the RDP 2014–2020 under the sub-measure “Crop, animal and plant insurance premium” of the measure “Risk management” is EUR 10,000,000, of which EU co-financing from the European Agricultural Fund for Rural Development (EAFRD) is planned to be EUR 681,300,000, while the Latvian state budget co-financing is EUR 321,300,000. The measure is planned to be implemented over six years.

Since the support measure is planned to be launched in October 2015, a total support funding of 700,000 euros could be provisionally used in 2015. In the period from 2016 to 2020, a provisional amount of 1,860,000 euros annually.
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Information prepared by:
Ministry of Agriculture
public relations specialist
Ruth Rudzite