Russia has no compulsory crop insurance, but it does have agricultural insurance with state support. It is governed by Federal Law No. 260-FZ of 25 July 2011 "On State Support in the Field of Agricultural Insurance". The main idea of the law is that the state reimburses farmers part of the insurance premium if the contract meets the established requirements.

What can be insured

  • crop harvests;
  • perennial plantings (orchards, vineyards and others);
  • farm animals;
  • commercial aquaculture (commercial fish farming).

The list of crops and animal species eligible for support is set each year by the agricultural insurance plan approved by the Russian Ministry of Agriculture.

Which risks are covered

Crops and perennial plantings

Article 8 of the law lists the events for which support is provided:

  • hazardous natural phenomena: soil and atmospheric drought, hot dry winds, frosts, winter kill, damping-off, ice crust, hail, heavy and prolonged rain, waterlogged soil, spring floods, floods, flash floods, strong and hurricane winds, dust storms, earthquakes, mudflows, landslides, avalanches, wildfires and others;
  • epiphytotic spread of harmful organisms;
  • disruption of electricity, heat or water supply due to natural phenomena — for greenhouses and reclaimed land;
  • a natural emergency.

Animals and aquaculture

Contagious diseases from the approved list (if animals have to be destroyed or seized because of them), mass poisoning, natural disasters, disruption of power supply due to natural phenomena, and fire.

How much the state pays

The subsidy is granted by the region from federal and regional budget funds and is transferred directly to the insurer on the farmer's application. As a general rule, the state reimburses 50% of the premium charged — provided the rate does not exceed the cap set for calculating the subsidy. If the rate is higher, the 50% is calculated from the sum insured multiplied by the capped rate, and the policyholder pays the difference. Separate calculation rules apply to emergency cover.

Contract requirements

  • Sum insured — at least 70% of the insured value of the crop, plantings, animals or aquaculture; for emergency crop cover — from 35% to 50%.
  • Unconditional deductible for crops — from 10% to 30% of the sum insured for each crop (for emergency cover, from 10% to 20%); for animals and aquaculture — no more than 30%.
  • Payment — to receive the subsidy, the farmer must pay their share of the premium (as a rule, at least 50%).
  • Timing — a crop insurance contract must be concluded no later than 15 calendar days after sowing or planting is completed; an animal insurance contract is for at least one year and covers the entire herd of a species in the region.
  • Insurer — a member of the single association of agricultural insurers.

National Union of Agricultural Insurers

All insurers working with state support must belong to a single all-Russian association — JSC National Union of Agricultural Insurers (NAAI). The association develops rules and standards, builds a compensation fund from insurers' contributions and makes compensation payments if an insurer cannot meet its obligations, for example when its licence is revoked.

Emergency cover

A separate option is insuring crops against a natural emergency. A payout is possible if an emergency regime has been declared in the area and crop loss is confirmed by the emergency commission with the participation of the farm and local authorities, by a joint act of the parties or by aerial and satellite monitoring data. This programme is cheaper than classic cover but only covers large-scale disasters.

What to do when an insured event occurs

  1. Notify the insurer within the time limit set in the contract.
  2. Obtain confirmation of the hazardous phenomenon — a certificate from the regional office of Roshydromet (the federal weather service) or documents on the emergency regime.
  3. Do not destroy damaged crops or resow fields before the insurer's representative inspects them.
  4. Take part in the inspection and drawing up of the report, and keep records of costs and yields.

Learn more about the policy in the Agricultural insurance section. Farm property and machinery can be protected with corporate property insurance, and transport of produce with cargo insurance. Reviews of other laws are in the Laws section.