Russian Federation Agricultural Tender

Today an increasing number of farmers are thinking about insurance for future crops. Indeed agricultural insurance is of particular importance for the regions of risky farming which include the Republic of Tatarstan and is a real opportunity for agricultural producers to conduct stable activities to forecast incomes in advance without fear of adverse weather conditions. Last year agricultural enterprises of Tatarstan in connection with the death of winter crops received 120 million rubles of compensation.As you know the Government of the Russian Federation decided to compensate the costs of agricultural producers for replanting winter crops only on insured fields. In Tatarstan out of 218 thousand hectares of dead winter crops crops on an area of only 12.5 thousand hectares were insured says Vladimir Pankov Director General of Krasny Vostok Agro JSC on whose agricultural holding accounted for almost the entire amount of last years payments.Until 2012 the Russian Federation had a system of supporting agricultural insurance when the agricultural producer paid the insurance company 100 of the amount of the insurance premium and after some time the state compensated 50 of the cost of the insurance premium. State subsidies were directed to the regions in a targeted manner and their sizes were determined in federal ministries and departments.Gradually more and more enterprises began to insure their risks. Due to the fact that this system required the diversion of large financial resources during fieldwork at the request of agricultural producers the support system was changed.Under the new rules since 2012 agricultural producers paid 50 of the accrued insurance premium the remaining 50 are transferred by the authorized body of the constituent entity of the Russian Federation to the account of the insurer. But in the year of transition to the new system during the transition period farmers who paid the insurance premium under the old scheme in the amount of 100 did not receive compensation. Thus all agricultural producers who previously insured risks considered themselves deceived not having received the support promised by the state. For example enterprises of the Red East in just one year lost about 80 million rubles. On a national scale this caused a big negative enterprises ceased to insure their risks.The current system of distribution of state subsidies implies the distribution of state support based on local realities and conditions at the local level which undoubtedly works more effectively in the form of assistance to the agricultural producer.We were lucky with the insurance company which every year fulfills its obligations by paying all the risks associated with crop production and livestock production under insurance policies. Even in the difficult year of 2019 when more than 40 of winter crops died in spite of the enormous sums Talisman Insurance Company paid our holding everything that was supposed to be a penny. Thanks to our state the Ministry of Agriculture of the Republic of Tatarstan which promptly issued an emergency which allowed us to receive compensation from the state as well Vladimir Pankov shares his own experience of agricultural insurance.