The parliament registered a bill №5104 on improving the legal regulation of agricultural products insurance with state support, which was approved during a meeting of the Government. Experts from the advisory center “Smart Country” (which was found by the UAC) actively participated in its development.

The bill provides for the possibility of compensation for the cost of insurance payment up to 60% with the state. This practice is common in all developed countries. The norms of the bill provide for the possibility of insuring the crop against natural risks - hurricanes, droughts, downpours, earthquakes, hail, etc.

"Unfortunately, agricultural insurance in Ukraine today has not gained widespread appreciation. Legally, it exists, but due to the high cost of such an instrument and the lack of assistance from the state, it has not become widespread. So far, the state has drawn attention to this problem. Undoubtedly, this was influenced by the drought that occurred in the south of Ukraine last year and because of which Odesa region suffered the most. If such tools had introduced earlier, farmers would have insured their crops, received compensation from insurance companies and not have such big problems as they have today,” the UAC's adviser on public relations Dmytro Kokhan said.

In addition, the UAC experts insisted on the inclusion to the draft law of an issue on insurance of agricultural producer’s income. That American model provides insurance not only for weather but also for price risks.

"Price risk, like weather one, is extremely important. After all, when in the world, for example, the surplus of harvest and the price falls, the farmer loses part of the profit. In this case, the insurance company compensates for the difference between the actual price and the mortgage set by the farmer from the beginning. The task of the farmer is to grow the crop in compliance with all technologies. That is why we insisted that the bill provides for this type of agricultural producers insurance. Thus, after the adoption of the bill, insurance companies will be able to develop and offer farmers such products," Dmytro Kokhan said.

In order to avoid manipulations and take away from the list unscrupulous companies, the document provides for a list of requirements for insurers that apply to participate in the program of compensation for part of the insurance payment.

As an active member of the working group that drafted the document, the UAC supports the draft bill and looks forward to its consideration by parliament as soon as possible.

It will be recalled that in October 2020, the UAC representatives took part in the presentation of the draft bill, which was conducted by the Ministry of Economic Development, Trade and Agriculture together with the National Bank of Ukraine.