Preferential orchard insurance starts in Azerbaijan

January 13, 2022 17:51 (UTC+04:00)

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By trend

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

Half of the insurance premium for these products is paid by the State.

According to the rules of agricultural insurance, crops are insured against risks such as hail, fire, earthquakes, landslides, hurricanes, mudslides and floods (new rule), rainstorms (new rule), lightning, frost (new rule), excessive snowfall (new), actions of third parties, etc.

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

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

For example, if to insure 1 hectare of apple (or pear) orchard, the expected return per hectare is 80 cents, and the market price for 1 cent is 40 manats ($23), then the total cost of the expected harvest is the insurance premium will reach 3,200 manats ($1,882).

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

In the event of total crop loss, the insurance payout reaches 2,880 manats ($1,694) under an insured event.

With regard to the insurance of one hectare of a plot on which peach trees (nectarins) are grown, if the expected yield per hectare is 80 cents and the market price of 1 cent is 30 manats (17 $), the total cost of the expected harvest is the insurance premium which will reach 2,400 manats ($1,411).

Insurance in this area for the basic package varies between 61 and 128 manats ($35-75), depending on the district of the country. The farmer will pay half of this amount – 31-64 manats ($18-37), the rest will be paid by the state.

In the event of total crop loss, the insurance payout reaches 2,160 manats ($1,270) under an insured event.

With regard to insuring 1 hectare of a plot in which persimmons grow, if the expected yield per hectare is 80 cents and the market price of 1 cent is 25 manats ($14), then the total cost of the expected harvest is the insurance premium will reach 2,000 manats ($1,176).

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

In the event of total crop loss, the insurance payout is 1,800 manats ($1,058) under an insured event.

When paying an additional insurance premium, fruits can also be insured against loss of quality due to hail, frost (new rule), as well as damage caused by plant diseases and pests of cultures.

The conditions and rates of insurance can be viewed on the official website of the Caisse d’Assurance Agricole in the “Plant Production” section.

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