Government maintains 70% support for agricultural insurance policies

The Government will continue to cover 70% of the cost of agricultural insurance policies from the National Fund for the Development of Agriculture and Rural Environment. A decision to this effect was adopted today by the Cabinet of Ministers. The farmer’s contribution represents 30% of the policy value.

The provision of financial support will encourage agricultural producers to insure their crops, given that the agricultural sector is among the most exposed to climate risks: drought, frost, hail, storms, floods.

"The proposal stems from the positive impact of this measure, which strengthens risk management, increases farmers’ confidence in insurance, and stabilizes the agricultural sector. Maintaining this rate is essential for continuing the upward trend in agricultural insurance and protecting farmers from climate risks," said Minister Ludmila Catlabuga.

In addition to the positive impact on the stability of farmers’ incomes, the insurance subsidization increases farmers’ access to finance by reducing the risk associated with agricultural activity and improving farmers’ profiles in the eyes of lending institutions.

The subsidization of agricultural insurance policies is financed from the National Fund for the Development of Agriculture and Rural Environment. Financial support is granted upon request, based on the insurance contract. The farmer pays the share of the contribution (30%), while the support payment (70%) is transferred by the Agency for Intervention and Payments in Agriculture directly to the insurance company’s account.

In 2025, AIPA allocated 110.4 million lei to cover 70% of the insurance policy for agricultural risks, and the estimated amount of financial resources for this year is about 120 million lei. Last year, farmers submitted 654 applications for support, of which 177 have already been paid, while the others are under evaluation.

Data for the years 2022–2024 show that the trend of agricultural insurance is positive: gross policies increased from 93.2 million lei to 129 million lei. The insured sum increased from 974.2 million lei in 2022 to over 1.39 billion lei in 2024, while compensation paid fluctuated between 44 and 57 million lei.

The agricultural sector accounted for 14% of GDP in 2024, ensuring over 45% of total exports and employing 18% of the active workforce.