Preferential insurance of orchards starts in Azerbaijan

By Trend

The list of products covered by agricultural insurance through the state support includes persimmons, apricots, peaches, cherries, sweet cherries, cherry plums, plums, quinces, apples, pears, strawberries and pomegranates upon the decision of the Azerbaijani Cabinet of Ministers, the Azerbaijan Agricultural Insurance Fund told Trend.

A half of the insurance premium for these products is paid by the state.

According to the agricultural insurance rules, crops are insured against such risks as hail, fire, earthquake, landslide, hurricane, mudflow and flood (new rule), rainstorm (new rule), lightning strike, frost (new rule), excessive snowfall (new), actions of third sides, etc.

Agricultural insurance rates vary depending on the type of fruits and the sown area, as well as the insurance package.

Insurance rates for the basic package are 3.36-7.31 percent for cherry growing, 3.49-7.62 percent for cherry plums and plums, 3.26-7.06 percent for apples and pears, 2.76-6.14 percent for strawberries, 2.19-4.48 percent - apricots, 3.56-7.81 percent – sweet cherries, 1.62-3.08 percent – pomegranate, 2.55-5.34 percent - peaches, 2.14-4.36 percent - persimmons.

For example, if for insuring 1 hectare of apple (or pear) orchard, the expected yield per hectare is 80 centners, and the market price for 1 centner is 40 manat ($23), then the total cost of the expected harvest, that’s the insurance premium will reach 3,200 manat ($1,882).

Insurance in this sphere for the basic package varies between 104-226 manat ($61-132), depending on the district of the country. The farmer will pay a half of this amount - 52-113 manat ($30-66) while the rest amount is paid by the state.

In case of complete crop loss, the insurance payment reaches 2,880 manat ($1,694) within an insured event.

As for insurance of 1 hectare of a plot in which peach (nectarine) trees are grown, if the expected yield per hectare is 80 centners, and the market price of 1 centner is 30 manat ($17), the total cost of the expected harvest, that’s the insurance premium will reach 2,400 manat ($1,411).

Insurance in this sphere for the basic package varies within 61-128 manat ($35-75), depending on the district of the country. The farmer will pay a half of this amount - 31-64 manat ($18-37), the rest amount is paid by the state.

In case of complete crop loss, the insurance payment reaches 2,160 manat ($1,270) within an insured event.

As for insurance of 1 hectare of a plot in which persimmon trees are grown, if the expected yield per hectare is 80 centners, and the market price of 1 centner is 25 manat ($14), then the total cost of the expected harvest, that’s the insurance premium will reach 2,000 manat ($1,176).

Insurance in this sphere for the basic package varies between 43-87 manat ($25-51), depending on the district of the country. The farmer will pay a half of this amount - 22-44 manat ($12-25) while the rest amount is paid by the state.

In case of complete crop loss, the insurance payment is 1,800 manat ($1,058) within an insured event.

When paying an additional insurance fee, the fruits can also be insured against quality loss as a result of hail, frost (new rule), as well as damage caused by plant diseases and crop pests.

The conditions and insurance rates can be found on the official website of the Agricultural Insurance Fund in the "Crop Production" section.