Economy
Posted: 11 months ago

A 14% Uptick in Insured Agricultural Land Reflects Growth in Agroinsurance

The extent of insured agricultural land in Georgia saw a significant increase of 14% in June, compared to the same period the previous year.

This, as elucidated by the Deputy Director of the Rural Development Agency, Natalia Kharatishvili, signifies an upturn in farmer engagement with more than 17,300 hectares now under insurance coverage.

"The escalating data implies a greater level of farmer participation. One of the factors behind this surge is our decision to level the playing field by boosting co-financing from 50% to 70% across all crops. This, particularly in the case of vineyards, has been positively received by our farmers, especially those in Kakheti and Shida Kartli regions, where natural calamities predominantly occur," Kharatishvili explained.

She further emphasized that Georgia has been experiencing frequent natural disasters since early April. "Given the current weather patterns, marked by recurring hailstorms and floods, it is prudent for our farmers to secure insurance coverage without delay. Even for those fortunate enough to have their plots spared so far, it is advisable to reach out to insurance providers. Historical data indicate that natural disasters persist into August and September. Hence, to safeguard fall harvest income, farmers should invest in an insurance policy. The state offers 70% co-financing to support this cause," Kharatishvili noted.

The Agroinsurance program offers all participating farmers a substantial 70% co-financing for all program-included crops, including vineyards. The program enables beneficiaries to insure up to 10 hectares of land for most crops and up to 50 hectares for grain. It also allows the simultaneous insurance of grain and other crops, further broadening the coverage possibilities for insurers.