After droughts and frosts: the government launches agricultural insurance
27 February 17:19
After several years of droughts, spring frosts, and sharp temperature fluctuations, the state is launching a new program to support farmers—agricultural insurance.The Ministry of Economy, Environment, and Agriculture of Ukraine announced the launch of the initiative, according to "Komersant Ukrainian".
The program is designed to protect farmers from increasing weather risks and ensure stable production in the face of climate change and military challenges.
Why is this necessary?
According to Deputy Minister Taras Vysotsky, cases of force majeure weather events are becoming more frequent and can lead to partial or complete crop losses.
Insurance in the agricultural sector is traditionally expensive due to the high probability of risks. That is why the state will compensate part of the insurance premium to make this tool more affordable.
What are the conditions for compensation?
The program provides for partial reimbursement of the cost of insurance:
- 60% of the insurance premium — for farms in frontline territories;
- 45% — for farmers in other controlled territories.
The state budget for 2026 has allocated UAH 60 million for this purpose for the first time.
What exactly will be covered
The insurance will primarily cover weather risks:
- the formation of ice crust and freezing of winter crops;
- the need for replanting;
- late spring frosts;
- drought;
- excessive precipitation and other climatic factors.
Selection of insurers and payment guarantees
The ministry emphasizes that the key difference in the new model is the strict selection of insurance companies. Currently, three companies that meet the criteria of financial reliability and have proven experience in insurance payments are eligible to participate.
A mandatory requirement is an impeccable reputation and a history of successful compensation, which should minimize the risk of non-payment in the event of an insured event.
How the mechanism will work
The procedure involves several stages:
- The farmer enters into a contract with one of the authorized insurance companies.
- After paying the insurance premium, they submit supporting documents.
- The insurance company forwards the package of documents to the ministry.
- The ministry pays compensation directly to the agricultural producer’s account.
Applications will be accepted three times a year — until April 10, August 10, and November 20. Payments will be made within a month after the deadline for submitting documents.
Agricultural insurance is just one of the support tools provided for in the 2026 budget. Earlier, the state introduced mechanisms to guarantee loans through the Partial Credit Guarantee Fund in Agriculture, and also announced support for farming, demining, and infrastructure modernization.
The government expects crop insurance to become a systemic mechanism for protecting production, especially in conditions where climate and war risks overlap.
