Agriculture is one of the inherently risky business. Force majeure weather conditions can affect the result of agro activities so farms and agro producers will suffer significant losses.
According to the Law of Ukraine “On Insurance”, crop insurance can only be voluntary. Farmers and owners of agribusinesses make decisions on insurance themselves.
The insured can choose one of three options for insurance coverage:
insurance for the entire production cycle;
insurance of crops for the spring-summer period (before 15th May).
What can be insured?
Crop yield insurance products:
yield insurance against hail and fire - from the time of seedling emergence to the end of harvesting;
multi-peril individual yield crop insurance: - from the time of seedling emergence to the end of harvesting;
winter crop multi-peril insurance - fall-spring season;
yield index insurance - from the time of seedling emergence to the end of harvesting;
wintering risk insurance for fruit trees and vines.
A comprehensive insurance program for winter crops against the risks of complete death during the wintering period covers the following perils:
heavy rain, long-term rains;
damping-off, rotting, protruding;
strong wind, dusty storm, squall, blowing-off;
avalanche, mudflow, earthquake, landslide;
the epiphytotic outbreak of diseases or pests;
winter drought or dehydration on lands subject to forced irrigation or flooding, soil crust,;
secondary diseases due to the above-listed perils,
illegal acts by third parties.
Insurance incepts from crop acceptance by the Insurer before the wintering and lasts until 10th April but not later resumption of vegetation in spring, and for winterkilling – till 30th April.
Sum insured is determined in the amount of direct input costs for sowing and growing, carried until the resumption of vegetation in spring (or until May for frost extension). Direct costs comprise the following:
costs on seeding material;
costs on crop protection;
costs on fertilizers;
costs on fuel;
costs on wages.
At the grower’s discretion, other costs can be included that should be verified by documents and agreed with the insurer in advance.
Insurance is provided against the following perils:
hail, storm, hurricane, squall, tornado;
fire, lightning strike;
downpour, inundation, flash flood and flood, excessive precipitations, damping-off;
mudflow, avalanche, landslide, sandy storm, drought, dry winds, soil crust;
dehydration on lands subject to forced irrigation;
the epiphytotic outbreak of diseases, the epiphytotic outbreak of pests;
secondary diseases due to the above-listed perils;
illegal acts by third parties.
The standard list of insured events includes the most frequent events but can be supplemented by the Insured.
Sum insured is determined within the value of yield. The value of yield is equal to the insured yield productivity multiplied by acreage and by agreed crop commodity price. Insured yield productivity is defined as the average yield of the Insured’s farm for the previous 5 years. If farm data is not available, the district statistics are taken into account.
Insurance incepts from crop acceptance by the Insurer in spring and lasts until harvesting conducted within general harvesting dates in the area where the Insured are located.
Crop pre-acceptance and loss survey are mandatory.
For a preliminary risk assessment, the owner of the agricultural production must provide basic information on the subject of insurance:
Inception date of policy
Policy expiry date
Planted area, hectare
Insured yield in tons per hectare
Insured values per unit (one ton of crops)
We will be happy to answer any questions or help you to choose insurance program you need.Free consultation