OREANDA-NEWS. September 11, 2012. Beginning this autumn, an agricultural producer can minimize potential losses from adverse weather conditions due to the introduction of state compensation to 50% of the payments for the insurance of winter wheat.

"The Government has taken the responsibility to make up for 50% of the paid insurance premiums that agricultural producers pay to insurance companies. The 2012 fiscal year, the subsidy applies to winter wheat, including risks relating to the overwintering winter wheat", - the Minister of Agrarian Policy and Food Mykola Prysyazhnyuk said.

These risks include those that occur during the period of overwintering until the resumption of vegetation.

The Minister also added that with the involvement of NGOs of agricultural sector and insurance companies the development of a standard insurance contract is being completed, which will be used by these companies.

This will simplify access to this service to agricultural producers. It is assumed that the cost of insurance will be approved by the order of the State Financial Inspection in a view of regions. The average tariff in the country will make about 65 UAH/ha. Given the state compensation an agricultural producer will pay insurance company about half of that amount for the insurance of winter wheat.