Ministry of Environmental Protection and Agriculture of Georgia Ministry of Environmental Protection and Agriculture of Georgia

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Vineyard farmers involved in the state Agro-Insurance program will benefit from 70% co-financing instead of 50%.

Vineyard farmers involved in the state Agro-Insurance program will benefit from 70% co-financing instead of 50%.

Under the decision of the Government of Georgia, changes are made in the state agro-insurance program. Vineyard farmers will be able to insure their grape harvest with 70% co-financing.

According to the Minister of Environmental Protection and Agriculture, Mr. Otar Shamugia, it is critical to promote farmers’ active involvement in the program even more.
" Last year, around 8,000 hectares of vineyard area was insured, which I think is not a high figure, considering, that we have registered over 40-41,000 ha of vineyards in the Kakheti region solely. Moreover, this decision will help and give more incentives to farmers to join the program. I would like to take the opportunity and encourage every farmer to take advantage of the important state support of 70% co-financing and insure their crops and risks," Minister stated.

The state agricultural insurance program allows farmers to protect their crops from climatic risks. Agricultural insurance is a financial protection mechanism for crops, that makes activities predictable for farmers. The program has been successfully running since 2014 and is constantly being improved.
Changes in the agro-insurance program will help to increase the area of insured vineyards, as insurance has become more affordable for vineyard farmers due to increased participation from the state. On the other hand, the increased participation of the state gives the insurance companies involved in the program more opportunities to insure grape crops in risky regions. Agro-insurance is equally available to all farmers and people interested in agribusiness.

Within the framework of the state agricultural insurance program, the insurance policy covers such insurance risks as hail, flood, storm, and autumn frost (only for citrus crops) - from September 1 to November 30. All farmers involved in the program receive 70% co-financing for all crops included in the program, including vines. Within the framework of the program, the beneficiary can insure up to 10 hectares of land, and 50 hectares in the case of grain crops.
Moreover, the insurer can insure both grain crops and other crops at the same time. More than 150,700 policies were issued by insurance companies to 65,000 beneficiaries between 2014 and March 31, 2023; more than 140,000 hectares of land were insured; and the crop damage reimbursement exceeded GEL 67 million.