Ukraine Adopted a Law on Agricultural Insurance

At a meeting on July 1, the Verkhovna Rada adopted a law on agricultural insurance. In accordance with it, amendments are made to the Tax Code. The law regulates statements related to the insurance of agricultural products with state support. This law introduces state insurance of crops affected by weather conditions.

The website of the parliament reports that bill No. 5104 "On Amendments to the Tax Code regarding the improvement of legal regulation of insurance of agricultural products with state support" was adopted with the support of 311 MPs. 

In accordance with the law, the tax rate on income under agricultural insurance contracts is increased by 0.5 percent. Thus, the rate rises to 3.5%. The funds received are used to support the insurance of agricultural products.

If an insured event occurs, the farmer will be partially reimbursed for insurance payments, in the amount of up to 60%. The indicator was formed on the basis of the practices of previous periods of such support programs.

As of today, the agricultural insurance market is about UAH 250 million. The adopted law on state support for agricultural insurance will increase it to UAH 1.4 billion in 2021. Another 40 million UAH will be additionally transferred to the state budget for this tax.

Minister of Agrarian Policy and Food of Ukraine Roman Leshchenko noted that the government's Development Strategy until 2030 considers agricultural insurance as one of the goals of the ministry.

According to Leshchenko, the program will cover the risks from weather factors, thereby supporting farmers. Such a state instrument will reduce the dependence of the agricultural sector on weather conditions and possible disasters. Thus, the farmers will be guaranteed a stable income.