CYPRUS: new insurance system for farmers to be launched in 2019
The cabinet of Ministers approved in February, 2019 the creation of a new insurance system for farmers that seeks to offer financial support to producers of all crops, as well as for sheep and goat farmers.
New insurance system means shifting from the existing coverage of some crops against some risks to the full coverage of all crops, as explained the Minister of Agriculture, Costas KADIS.
According to him, both farmers and the state will contribute to the fund for protection and insurance of agricultural production as well as participate in the fund management, yet this fund still requires approval by the parliament. At that the amount, to be contributed by farmers, will depend on the risk level their products face extreme weather conditions and natural disasters. As estimated, farmers’ contributions will range from EUR 1.90 to EUR 32 per 1 m2, depending on the crop production, while sheep and goat farmers will contribute EUR 0.80 per a livestock unit.
As KADIS explained, the new system offers a flexible scheme aiming to provide immediate compensation.
In terms of the state, the contribution amount is similar to what is being spent today, but depending on future weather conditions, the state will also cover the farmers’ contributions in cases when they are not able to do it. The system is expected to be launched in 2019 and will replace the current Agriculture Insurance Organization, functions of which will be transferred to the Ministry of agriculture…