The UAC requests to facilitate the dynamic consideration and adoption by the Verkhovna Rada of Ukraine of the bill №5104 “On Amendments to the Tax Code of Ukraine to Improve the Legal Regulation of State-Supported Agricultural Insurance”.

With a corresponding letter, the UAC Chairman Andrii Dykun addressed the Verkhovna Rada Chairman Dmytro Razumkov, the Head of the Agrarian Committee Mykola Solskyi and the Head of the Verkhovna Rada Committee on Finance Danylo Hetmantsev.

Farmers emphasize that agricultural insurance is one of the main problems of the domestic agro-industrial complex. It has not gained widespread popularity due to the high cost of such a tool and the lack of targeted support from the state.

"This situation has led to the fact that as a result of last year's drought, which affected the Odessa region the most, a large number of farmers were on the verge of bankruptcy. In turn, the government is forced to find funds to pay direct subsidies to victims in order to preserve production, jobs and tax revenues to local budgets. The lack of funds threatens a sharp escalation of social tensions in the region and a decline in agricultural production. If the instruments of state support for agricultural insurance had been introduced earlier, farmers in the south would have insured their crops, received compensation from insurance companies and not have such big problems as they have nowadays,” is explained in the statement.

To prevent further crises, the Cabinet of Ministers together with experts of the UAC, representatives of the insurance market and other agricultural organizations, developed the draft bill №5104 "On Amendments to the Tax Code of Ukraine to improve the legal regulation of agricultural insurance with state support."

The document proposes to improve the mechanism of state support of the agro-industrial complex and to introduce a state program of partial compensation (up to 60%) to agricultural producers for the cost of insurance payment.

"It is essential that the relevant draft law provides for the possibility of insuring not only weather risks but also insurance of farmers' income - the American model of agricultural insurance, which protects agricultural producers from both natural disasters and market fluctuations (price risk)," is emphasized in the statement of the UAC.

This model provides farmers with a guaranteed return, reduces the risk of bankruptcy and significantly reduces the lending cost. This is especially important before the land market opening, when farmers are forced to find third party financing to buy the land they cultivate.

At the same time, this option of reducing the lending cost to farmers will have additional benefits for the state, as it will reduce state budget expenditures to compensate for interest rates on loans to farmers, which is currently carried out under the state program to reduce lending.

Farmers hope for understanding of the situation on agricultural insurance and the support of parliamentarians for the draft bill №5104.