Cabinet included triticale to list of agricultural crops whose insurance is to be State-subsidized

08.04.2008 15:55 "Agro Perspectiva" (Kyiv) — As to Cabinet Decree ¹ 302 from Apr 2, 2008 “About Procedure of Usage in 2008 of Financial Means Stipulated by State Budget for Cheapening of Cost of Insurance Premiums Which had been Actually Paid by Agrarian Market Entities,” Cabinet has inserted triticale, peas, buckwheat, millet, hemp and rice into list of agricultural crops whose insurance payments are to be reimbursed by State through insurance premiums 50% subsidizing.

As to Decree, agrarians will receive subsidies if they conclude winter/spring crops sowing insurance contracts until Jul 1, 2008 (winter/spring crops) and Nov 25, 2008 (winter crops) with subsidies volumes to be proportional to financial means volumes determined in insurants applications.

However, Decree says if control bodies reveal fact of agricultural producer having illegally received or misused financial means, producer will be fined with 120% fee (in case if financial means aren’t paid back within 1 month) and deprived of right for any State support within next 3 years.

As to Agro Perspective earlier report, now agrarians are granted State support on condition if they had ensured 20% of abovementioned spring crops sown areas. 2008 State budget stipulates UAH200 mn to be granted to agrarians as partial compensation for insurance premiums.

As to currant legislation, State pays compensations to agricultural producers as 50% of insurance premiums on condition if premiums do not exceed 5% of insured risks (calculated on basis of minimal purchase prices for insured agricultural crops).

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