Monday, September 8, 2014

They’re coming elections in Poland – farmers get more – Interia

They're coming elections in Poland – farmers get more – Interia

There will be greater subsidies for agricultural insurance. Photo. Peter Stoneware / REPORTER

Increasing to 65 percent. maximum subsidy for premiums and increase subsidies for fruit and vegetable producers assumes draft amendment of the Law on insurance of agricultural crops and livestock, which on Tuesday will take up the government.

The changes are to adjust Polish law to EU rules on state aid and to encourage farmers to enter into insurance.

So far dopłacał budget from 40 to 50 percent. premiums for crop insurance. The author of the project – Ministry of Agriculture and Rural Development – wants to raise this limit to 65 percent. This mark will allow you to get under the condition that the tariff rates set by the insurance companies will not be higher than 3.5 percent. sum insured crop cereals, maize, spring oilseed rape, turnip, potatoes or sugar beet and 5 percent. sum insured crop of winter oilseed rape, vegetables, water, hops, tobacco, fruit trees and shrubs, strawberries or legumes.

If the tariff rates will be higher than 3.5 and 5 percent., and do not exceed 6 percent. sum insured, subsidies to farmers’ contributions will be applied to the amount only to 3.5 or 5 percent. the sum insured.

The Ministry of Agriculture wants but exceptionally treated fruit and vegetables, and make payments to the rates even when insurance rates exceed 6 percent. sum insured crops. Until now it was impossible.

According to the story, if the tariff rate insurance field vegetables and fruit trees and shrubs will exceed 6 percent. the sum insured, the budget will be dopłacał to give a 5 percent premium. the sum insured and the remaining part of the premium in full to pay the farmer.

justifies the Ministry of Agriculture, rates for these crops are set by most insurers at more than 6 percent. sum insured, which farmers can not obtain subsidies from the budget for premiums. As a result, in general forgo insurance, and their crops are not protected.

Addressing this matter is all the more important that – according resort – fruit production in Poland is steadily growing from 1.7 million tonnes in 2007 . to 3.9 million tonnes in 2013., with increasing acreage of fruit with 409.9 thousand. ha in 2009. to 426 thousand. ha in 2013. annual vegetable production in Poland remains at the level of approx. 5.4 million tonnes at an area of ​​over 180 thousand. ha.

Meanwhile, in 2013. insured subject only approx. 11 thousand. ha of fruit trees and shrubs, and approx. 12 thousand. hectares of field vegetables.

Insurance protection Polish farmers growing steadily but still has not reached the level recommended by the EU. In 2013. Covered by insurance was ok. 3.4 million hectares of crops from 2.8 million hectares in 2012. During the first year of the introduction of insurance insurance coverage subject to only 312 thousand. ha. Meanwhile, according to EU legislation should be half of the insured crop, which is approx. 6 million ha.

To enhance the protection of farmers, the project also provides for a reduction of from 30 to 14 days the date from which the plant takes responsibility after the contract of compulsory insurance agricultural crops from droughts and floods.

The new rules are capable of entering into contracts of insurance of agricultural crops and livestock with a group of insurance companies cooperating on the basis of an agreement koasekuracyjnego (contract, which involves the division or spread the risk of at least two companies insurance).

Polish Chamber of Insurance data shows that last year the insurance companies paid 151.4 million zł in the form of compensation, most of the losses caused by hail storms and rains. A year earlier, the company paid farmers up to 719 million zł, of which more than 587 million zł because of losses caused by frost.

The changes also provide for the improvement of the settlement subsidy from the budget they receive insurance companies.

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