It is recommended for all producers to use agricultural insurance

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The Ministry of Agriculture recommends that farmers take advantage of the agricultural insurance linked to the subsidy option.
The aim of the Ministry of Agriculture is that, in addition to encouraging the wider use of technological developments for damage reduction and production practices aimed at this, plant growers and gardeners should supplement their risk management tools as much as possible by participating in the damage mitigation fund.

In relation to last year’s 2022 year, almost HUF 14 billion in support was approved for farmers for more than 23,000 applications

57% of the premium of type “A” insurances was subsidized, while types “B” and “C” were subsidized 40% each. Thanks to the insurance premium subsidy, insurers paid out over HUF 40 billion for drought damages in 2022. The premiums of agricultural insurance contracts are subsidized, which provide cover for losses caused by adverse weather phenomena that cause yield reductions of more than 20% in plant culture at the plant level.

The Managing Authority of the Rural Development Program will also issue a statement this year

It publishes the names of the insurance companies and insurance associations that are entitled to conclude premium-subsidized insurance contracts. Several of the most important companies operating in Hungary offer subsidized insurance services year after year. It is an advantage for producers with fee-based agricultural plant insurance that they are entitled to the maximum amount of 80% of the damage mitigation benefit, so the agricultural plant insurance system helps farmers to be able to use a higher amount of damage mitigation benefit. The continuous success of the measure and the commitment of the Ministry of Agriculture are proven by the fact that, while in 2016 the annual available subsidy amount was HUF 4 billion, it has now risen to HUF 14.3 billion, and in the last 7 years, in connection with 100,000 applications, more than HUF 37 billion was paid out.

On November 7, 2022, the Commission of the European Union adopted Hungary’s Common Agricultural Policy (KAP) Strategic Plan, based on which the agricultural support resources became available from January 1, 2023. The Hungarian strategic plan continues to treat the support of risk management tools as a priority, and accordingly, in order to maintain and increase the desire to insure and self-care, producers can count on support related to insurance premiums in the long term.

AM