Azerbaijani Agricultural Ministry Calls on Farmers to Insure their Farms

Business Materials 14 June 2008 13:30 (UTC +04:00)

Azerbaijan, Baku, 14 June / Trend corr U. Ismayilova/ Azerbaijani Agriculture Ministry calls on farmers to insure their farms. "Agricultural insurance is important, given the risks in the field emerging from frequent non-favourable weather conditions," Agricultural Minister Ismat Abbasov said on 14 June.

According to the Minister, natural disasters may lead to devastation of farming. As a result, farmers may lose their farms without compensation of the damage. Farmers are not interested in farming insurance due to lack of funds. Ministry regularly informs farmers of importance of agricultural insurance.

According to the supplements in the Law on Support and Development of Agriculture in Azerbaijan approved in summer 2007, state's share in financing of premiums in agricultural insurance was increased from 25% to 50%. Remaining 50% are insured by insurance companies. Average tariff for agricultural insurance in Azerbaijan totals AZN 1,500 per year (5% from yield of 1 hectare). Average yield from 1 hectare comprises some AZN 25,000 per year.

List of agricultural cultures insured from the public budget includes wheat, barley, maize, sunflower, potatoes, sugar-beet and greens.

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