05.09.2022

Insurance of fields and animals will cost farmers cheaper

The insurance system in the agro-industrial complex is being improved and is attracting more and more interest. The insurance mechanism introduced in 2020 is voluntary and covers both crop production and animal husbandry. If earlier 50% of the insurance premium was paid by the state in the form of subsidies, then from today the subsidization of the insurance premium has been increased to 80%. Thus, farms will contribute only a fifth of the cost of the insurance contract.
JSC "Akmola Phoenix" is engaged in the cultivation of wheat, barley, sunflower, flax, soy, corn. The area of arable land is 34 thousand hectares. According to the head of the farm, Beibit Abylkasymov, the costs of spring field work are high, and therefore, in order to reduce risks, the company annually insures its fields from drought and rains.
This year, the Akmola farm has allocated 47 million tenge for the conclusion of crop insurance contracts. The second half of the insurance premium – another 47 million tenge – was paid by the state in the form of subsidies. As a result of the insured event, the farm has already received payments in the amount of 167 million tenge this year.
According to the new standards, when concluding a similar contract, the farmer's insurance costs will decrease by 28.2 million tenge and amount to 18.8 million tenge.
The changes made by the Ministry of Agriculture to the system of subsidizing insurance premiums in agricultural insurance will come into force on September 5, 2022. This innovation will reduce the cost of the insurance contract and make insurance more profitable for farmers.
- Farmers, realizing the benefits of insurance products, are turning to the insurance system more and more often. In 2020-2021, agricultural producers concluded 254 insurance contracts, insuring more than 265.7 thousand hectares of land, 2.6 million heads of domestic animals and birds. For 7 months of this year, 213 contracts were signed, 354 thousand hectares and more than 114 thousand heads of animals and birds were insured," said Yerlan Moldashev, Managing Director of Agricultural Credit Corporation JSC.
Recall that since December 2021, the insurance operator in the agricultural sector is the Agrarian Credit Corporation, a subsidiary of the National Management Holding "Baiterek". Insurance is available in an online format on the platform Qoldau.kz .