MOLDOVA: THERE IS NOW SIGNIFICANTLY LESS INSURANCE COVERAGE FOR STONE FRUIT FARMS AGAINST SPRING FROSTS.

The volume and value of insurance transactions for cherry, sour cherry, apricot, and peach orchards against spring frosts have significantly decreased in 2023 compared to 2022, according to Moldovan insurance brokers, according to EastFruit. Recent changes to the law on subsidized agricultural risk insurance that place administrative limitations on policyholders’ indebtedness to insurance companies are blamed for this reduction.

Under the new rules, policyholders can only owe a minimal percentage of their insurance fund and authorized capital to the insurance companies from the beginning of 2023. Any excess beyond these limits, as reflected in the financial statements of insurance companies, can lead to severe repercussions from the National Commission for the Financial Market, including the possibility of introducing an external management regime.

Unfortunately, farmers often accumulate significant debts due to delays in receiving subsidies from the National Fund for Subsidizing Agricultural Producers and Rural Areas. To mitigate this risk, insurance companies have imposed strict limits on their brokers for the total amount of crop insurance against spring frosts in the first quarter of 2023, mainly for early stone fruit orchards.

However, there is some hope on the horizon, as a draft law is currently under consideration by Parliament that seeks to abolish the aforementioned restrictions in the subsidized insurance law. If the legislation passes, farmers and insurance companies may still be able to insure pome fruit orchards against late spring frosts in 2023.

_{^{Source:https://east-fruit.com}} , _{^{Feature picture: Photo by Anastasia Shuraeva: https://www.pexels.com.}}

4 April 2023