Income Protection Insurance in Agriculture Will Be Extended

Income Protection Insurance in Agriculture Will Be Expanded
Income Protection Insurance in Agriculture Will Be Extended

The Income Protection Insurance, implemented within the Agricultural Insurance Pool (TARSİM), will be expanded throughout the country starting from next year, including the risk of loss of income due to yield decreases and price fluctuations.

In the last 50 years, the number of natural disasters such as floods, storms and droughts has increased 5 times in the world. Worldwide, 2020% of the economic loss from disasters, which amounted to $210 billion in 60, occurred in the agricultural sector.

Turkey has also suffered greatly from fire, flood and drought disasters in recent years. Despite the fact that the rate of being affected by disasters in agricultural production areas in recent years has been below 10 percent on average, the impact has been around 30 percent on average due to the high levels of drought, floods and fires.

Within the scope of TARSİM, intensive studies have been carried out to cover all insurable and measurable risks, especially meteorological events that damage the products of manufacturers, since its establishment.

Coverage is expanded every year on the basis of risk and product. Agricultural insurance, which started insurance with "hail package risks" covering only hail, storm, tornado, landslide, fire and earthquake in crop insurance, also covered flood and flood risk in the future.

District Based Drought Yield Insurance for Wheat was launched in 2017. As of 2021 (wheat, barley, oat, triticale, rye, chickpea, red-green lentil products and certified seed products) the application has been revised as “Village Based Drought Yield Insurance”.

In May 2021, due to climate change, the continuation of the air temperature above 40 degrees for a long time on the Mediterranean coastline, and the subsequent cold weather causing damage to tangerine, orange, goldentop and some lemon varieties and grapes, brought the scope of TARSİM to be expanded.

As a result of the studies carried out, the "hot weather damage coverage" was included in the scope of TARSİM in 2021.

Income Protection Insurance

The Income Protection Insurance Project was initiated in order to protect the producers from the increasing fluctuations in food prices in the world.

With the Income Protection Insurance, which protects producers against both the risk of loss of productivity (against all kinds of disasters) and price decreases, the risk of loss of income that may arise from yield decreases and price fluctuations is covered.

With the pilot project implemented in Konya's Cihanbeyli, Karatay and Kadınhanı districts, the risk of income loss due to yield changes and price fluctuations in bread and durum wheat was covered by the “Income Protection Insurance”.

Income Protection Insurance will be applied throughout Konya in the 2022 production season and throughout Turkey in the 2023 production season.

Minister of Agriculture and Forestry, Vahit Kirişci, stated that small family businesses, which form the basis of agricultural production in the country, are more sensitive to possible negativities, and suggested that farmers take out insurance.

Günceleme: 02/08/2022 14:12

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