The farmer will not brood about how much income he will earn at the end of the year. With the ‘income insurance’, which has been successfully implemented as a pilot in three districts of Konya, 70 percent of the potential income of the farmer will be guaranteed.
Tests of the ‘income insurance’ product prepared for farmers have been started and are being implemented. The farmer will have peace of mind before sowing and will not think about his post-harvest income until the end of the year.
Serpil Günal, General Manager of Agricultural Insurance Pool Management (TARSİM), said, “We have commissioned income insurance. For now, it is being implemented as a pilot in the Cihanbeyli, Kadınhanı and Karatay districts of Konya province. We guarantee 70 percent of the income generated by both the price and the yield multiplier. With this policy, we are talking about insuring the potential income that the farmer will receive in 1 year. Our farmer tells us that he will earn 100 liras and we guarantee 70 liras in both price and yield.”
INTEREST IN DROUGHT INSURANCE…
According to this system, how much the farmer produces annually and how much crop he receives will be determined with the available data.
The turnover that will occur as a result of this production will be determined in advance. In case of price fluctuations for any reason, if the realized turnover is below the expected, the insurance will cover the difference. Similarly, in case of a loss in production, the difference will also be covered by the insurance.
Stating that drought and climate change bring important disasters along with them, thus the number and severity of disasters have increased, Serpil Günal explained, “Last year, more than 83 thousand policies were issued throughout Turkey within the scope of Village-Based Drought Yield Insurance. In return for a premium of 24 million TL collected from insured producers, 215 Million TL damage payment was made. There is a great interest in drought insurance this year. In Village Based Drought Yield Insurance, the state support rate was increased from 60 percent to 70 percent in 2022. Again, specific to 2022, the threshold yield rate was expanded from 70 percent to 80 percent. In this direction, I can say that nearly 100 thousand policies have been issued since the beginning of the year.”
550 THOUSAND NOTICES RECEIVED…
“Last year, 550 thousand notices were received in all agricultural insurance branches across Turkey. In the notifications in the Crop Insurance branch, reasons such as frost, hail and storm took the first place. Insured producers were paid 989 million TL for frost damage, 395 million TL for hail damage and 77 million TL for storm damage,” Günal added.
“The premiums have been reduced. The premiums are at levels that our producers can pay. For example, in the narrow-scoped tariff excluding diseases, in the Cattle Life Insurance, the amount to be paid by the breeder for a cattle with an insurance cost of 17,500 TL in a 12-month period is only 55 TL,” Günal concluded…