The fee subsidy application related to agricultural insurance has been published

By: STA Date: 2024. 03. 20. 11:00

Within the framework of the Common Agrarian Policy Strategy Plan until 2027, the second call for tenders for rural development was published, which includes the conditions for premium subsidies available for agricultural insurance, continuing the scheme operated in the Rural Development Program. Regarding the management of risks that complicate production, the value of agricultural insurance has risen in recent years, for which the Ministry of Agriculture provides assistance with a special intensity of support. The scheme, which has been operated since 2014, was implemented with 23,000 farmers and 1.7 million hectares of insured area in the past period.

(Photo: Pixabay)

The purpose of the call for tenders, published on March 14, 2024, entitled “KAP-RD16-1-24 – Agricultural Risk Management System (MKR II. pillar): Subsidized agricultural insurance” is to encourage Hungarian farmers to reduce the risks that hinder their production. In the framework of the call, support can be provided for the premiums of agricultural insurances that cover losses caused by adverse weather phenomena that cause yield reductions of more than 20% in plant culture at the plant level.

The scheme is essentially a continuation of the support scheme introduced in the Rural Development Program

Thus, support can still be used for three different types of agricultural insurance contracts (“types A”, “B” and “C”), which can be linked to different species and insurance events. The maximum amount of support is the total eligible costs, i.e. a maximum of 70% of the annual net insurance premium paid, but if the support demand exceeds the available funds, the support will be reduced proportionally for “B” and “C” type insurance contracts in the case of up to 40% of the eligible costs, and up to 55% in the case of “A” type insurance contracts. KAP National Management Authority 5/2024. approved and published the subsidized agricultural insurance contracts offered by four insurance companies to farmers this year. This year, farmers who are beneficiaries of the agricultural insurance contract have the opportunity to submit support applications related to the 2024 farming year within the framework of the 2024 unified application, during its open period, in accordance with the rules for submitting unified applications. It is an advantage for producers with fee-based agricultural plant insurance that they become entitled to the maximum amount of 80% of the damage mitigation allowance, so the agricultural plant insurance system helps farmers to be able to use a higher amount of damage mitigation allowance. The call and related information materials and attachments can be found on the thematic website of the Ministry of Agriculture, kap.gov.hu. It is worth following this interface continuously, as all information and changes related to calls for tenders are available here. The goal of the Ministry of Agriculture is to reduce risks related to agriculture with the widest possible range of tools. This toolkit begins with encouraging the wider application of technological developments and production practices aimed at reducing damages, and extends to the damage mitigation fund and the provision of insurance premium subsidies as an important pillar.