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Russian Ministry of Agriculture supported additional risk insurance programme for protected ground vegetables growing

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“National Union of Agriculture Insurers with the Association Greenhouses of Russia will conduct the analysis of correspondence of the harvest insurance with state support to the peculiarities of protected ground vegetables farming. The measure should encourage expansion of insurance tools by greenhouse farms”, stated Korney Bizhdov, the President of the National Union of Agriculture Insurers.

“In 2018 the Union offered to develop additional programme of risk insurance for protected ground production and the proposal was supported by the Ministry of Agriculture of Russia. To complete the task the Union has to cooperate with the greenhouse industry”, underlined Mr Bizhdov.

According to the Union, insurance companies-members of the organisation provide insurance for greenhouse complexes but mostly on the condition excluding state support. Subsided insurance of this sector has not been widespread yet. Mukharbiy Boranukov, CEO of the Union, says that since the law of the state support of agriculture insurance for protected ground vegetables was implemented in 2012 only a handful of agreements had been concluded up to 2018. The insurance was required only in three regions: the Stavropol region, the Primorye region and the Republic of Bashkortostan. The share of such insurance in the gross insurance bonus comprised only 3%.

“The peculiarities of the greenhouse production are not accounted enough in the regulating and methodological framework of insurance with state support. By the types of risks, output, production peculiarities greenhouses are more similar to livestock breeding complexes than to the open ground crop farming. Greenhouses output is not calculated by ha as in the open fields, the output is controlled by the company and is accounted every day not per season. Major risks for the industry are not meteorological conditions but epiphytotics, power shutdowns and natural disasters, which are capable of damaging the facilities. These risks occur rarely but can bring significant damage and cost dozens and hundreds million. All these features should be considered while developing the programme. The Union is ready to provide offers of changes in the regulation of agriculture insurance with state support if the greenhouse industry is interested”, stated Mr Boranukov.

According to the Ministry of Agriculture of Russia, production of protected ground vegetables in 2018 exceeded 1m tonnes which a record for the industry. Total commercial vegetable farming reached 6m tonnes.

Source: AgroXXI

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