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Only 22% of the arable land of Romania is insured, namely 2 million ha, out of 8.3 million ha

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The National Union of Companies for Insurance and Reinsurance of Romania announced that storms, and torrential rain generated over 96% of the damage paid to the farmers and at the same time that only 22% of the arable land of Romania is insured, namely almost 2 milion ha, out of 8.3 million ha. In the context of the extreme weather phenomena over the last years, which lead to important loss în agriculture, the Romanian farmers may protect their investments through agricultural insurance policies. ‘Even so, only 22% of the arable land of Romania (approximately 2 million ha, out of the total of 8.3 million ha) is insured’ UNSAR says.

 

Similarly, taking into consideration the strategic importance of agriculture, especially in the economic context generated by pandemics covid-19, UNSAR launches a guide  with useful information about the agricultural insurance policies dedicated to the farmers.

 

‘The material proposes to answer the most frequent asked questions connected to these products and the risks insured. The launch of the guide comes in the context where the farmers can benefit from a programme for subsidy of the premiums for insurance of crops, worth 40 million euro – submeasure 17.1 ‘ Insurance Premiums for crops’ relaunched by the ministry of agriculture and rural development (MADR) this year. Subsidies can be accessed until November 2020, the conditions being presented on the site of the ministry. ‘The subsidy of the premiums paid represents a real help for farmers. The volatility of the weather phenomena over the last years indicates a new reality which farmers have to face – due to the context of climate changes whose impact is expected to grow over the next period.

 

Agricultural insurance represents an instrument with the purpose of financial stability of agricultural producers and which could protect them from losses caused

by such phenomena’ Adrian Marin, chairman of UNSAR said. By acquiring an agricultural insurance policy, the farmers can benefit from financial protection against climatic phenomena such as flooding, frost (early autumn, winter or last spring) torrential rain or excessive rain, storms, hurricane, tornados, drought.

 

‘Romania has an important potential, with the sixth biggest agricultural surface at the level of the EU and it occupies an important place in the European ranking for agricultural production. Accessing insurance programmes, extremely important to support and develop the agricultural sector, may contribute to the improvement of the results of the farms in Romania’ says UNSAR.

 

Set up in 1994, the National Union of the companies for insurance and reinsurance of Romania represents 20 companies in the domain. They have a share of almost 80% of the local insurance market.

 

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