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In 2020, farmers paid more than HUF 14.5 billion in subsidized plant insurance premiums, 28% more than the previous year’s premium portfolio of 11.4 billion. However, as the premium subsidy framework for agricultural insurance was increased from HUF 5 billion to HUF 7 billion this summer, farmers can expect an equal or more favorable repayment rate compared to last year. , according to the insurance category.
Agricultural insurance subsidies were at a record high this year, according to analysis by the Hungarian Association of Independent Insurance Brokers (FBAMSZ). Under the subsidized premium agricultural insurance scheme, which has been in operation for the ninth year in a row, farmers will receive a maximum of 70 percent of the subsidized insurance premium as a subsequent subsidy, up to the current amount. With the increase of the support framework, the distribution of the support premium this year will be more favorable or at the same rate as last year, depending on the type of insurance according to the following scheme.
Farmers can expect a refund close to 64% maximum for the most important field crops, as well as for package insurance for grapes, apples and pears, and for nut and skin crops (type A). (Last year’s rate was 55 percent.) Mainly plantations. and the insurance for vegetables (type B) is expected to be reimbursed at 40% and other herbaceous crops (type C) at 40%. (In the last two categories, the compensation rate was unchanged despite the increase in the fee portfolio.)
More and more people are concluding
“The increase in the number of policyholders and the widening of the range of risk coverage also influence the significant increase in the premium portfolio,” explains András Póczik, an expert at FBAMSZ. ice and storm).
As the three insurance categories have included the possibility of nine risk coverages since last year (fall frost, winter frost, spring frost, fire, ice, storms, droughts, floods and rain damage), the objective remains being to include other coverage in the insurance. . However, this would also require insurers to improve the conditionality of certain damage events (such as damage caused by spring frosts on fruit). “
According to damage reports this year, agriculture has suffered above-average natural damage. Winter and then spring frosts caused significant damage to orchards, causing up to 100 percent destruction of cherry, plum, apricot and peach orchards in some areas. Subsequently, a significant part of the farmland was affected by drought in late spring and early summer, followed by ice damage and storms not seen in five years, destroying crops. The results of the Soil Generating Ice Reduction System (JÉGER) developed by the National Chamber of Agriculture have proven to be encouraging, but this system cannot provide complete protection either.
Possible development directions
To promote the success of Hungarian agricultural strategic priorities and afforestation programs that are gaining in importance due to climate change, it would be desirable to extend supported crop insurance to forests, including at least unfinished afforestation of newly planted forest areas .
Unfortunately, support for animal insurance also awaits, although including certain elements of animal insurance (avian influenza, swine fever) in the predictable support system would fundamentally support government efforts to strengthen farmers’ self-sufficiency.
“At the same time, in the current situation, it is absolutely advisable to take out animal insurance without a premium subsidy system.
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