DOC // Published in Official Journal: Government maintains 70% subsidy for agricultural insurance policy

The Government will continue to cover 70% of the cost of agricultural insurance policy from the National Fund for the Development of Agriculture and Rural Environment, while the farmer’s contribution remains at 30% of the value. The decision was adopted by the Cabinet of Ministers and published in the Official Journal.

According to the authorities, maintaining this subsidy rate aims to encourage agricultural producers to insure their crops, given that agriculture is one of the sectors most vulnerable to climate risks such as drought, frost, hail, storms, and floods. 

Minister of Agriculture and Food Industry Ludmila Catlabuga stated that this measure helps strengthen risk management mechanisms, increase farmers’ confidence in the insurance system, and stabilize the agricultural sector. According to her, maintaining the 70% rate is essential for continuing the upward trend in agricultural insurance and for protecting farmers against climate risks.

The subsidization of insurance policies is carried out from the National Fund for the Development of Agriculture and Rural Environment, and financial support is granted upon request, based on the insurance contract concluded by the farmer.

The mechanism involves stages such as: the farmer pays 30% of the insurance premium value; the Agency for Intervention and Payments in Agriculture (AIPA) transfers 70% of the cost directly to the insurance company’s account.

The Government emphasizes that this formula reduces the financial risk of agricultural activities and improves farmers’ credit profiles, facilitating access to finance.

In 2025, AIPA allocated 110.4 million lei to cover 70% of the insurance policy for agricultural risk coverage. For the current year, the estimated amount for this type of support is approximately 120 million lei. Also, last year 654 applications for support were submitted, of which 177 have already been paid, while the rest are under evaluation. Data for the period 2022–2024 indicate a positive trend in the agricultural insurance market.

“Gross policies increased from 93.2 million lei to 129 million lei; the insured amount rose from 974.2 million lei in 2022 to over 1.39 billion lei in 2024; compensation paid ranged between 44 and 57 million lei annually. The agricultural sector contributed 14% to GDP formation in 2024, generated over 45% of total exports, and provided jobs for approximately 18% of the active population,” explains the Ministry of Agriculture.

By maintaining this measure, the Government aims to strengthen the resilience of the agricultural sector and reduce producers’ vulnerability to increasingly frequent climate risks.