Government to Reimburse Farmers Up to 60% of War Risk Insurance Costs – Vysotsky
The Ukrainian government has made a significant decision impacting the agricultural sector, allowing farmers to receive compensation of up to 60% of their paid war risk insurance premiums. This announcement was made by Taras Vysotsky, the First Deputy Minister of Economy, Environment, and Agriculture.
The Cabinet of Ministers of Ukraine has approved an important decision concerning the country's agricultural sector. Under the new mechanism for war risk insurance, farmers can receive compensation from the budget of up to 60% of the insurance premium paid. This was reported by Taras Vysotsky, the First Deputy Minister of Economy, Environment, and Agriculture, who emphasized the importance of this step in supporting farmers amid the ongoing war.
Vysotsky noted that access to agricultural insurance in wartime is not only a financial tool but also a crucial condition for the economic resilience of the agricultural sector. He stated that the government has introduced a new mechanism whereby farmers in frontline communities can expect to receive up to 60% reimbursement of their insurance premium, while other producers will receive up to 45%. This information was shared on his Facebook page following a meeting with representatives of the agricultural sector.
The Deputy Minister also pointed out that agro-processing companies are facing not only military threats but also challenging weather conditions, such as droughts or spring frosts. Due to these challenges, the cost of insurance services in the agricultural sector remains high, complicating farmers' access to necessary financial resources.
Vysotsky emphasized that the strategic goal of the Ministry of Economy is to create a market-oriented system that combines private insurance, reinsurance, and state support. Currently, the ministry is conducting consultations with businesses to determine acceptable insurance rates, eliminate barriers to access financing, and form a list of risks that remain uncovered.
“The decisions and proposals developed by businesses are ready for detailed consideration and gradual implementation. Such dialogue allows for the formation of state policy based on the real needs of the economy,” summarized the Deputy Minister, highlighting the importance of cooperation with farmers.
It is worth noting that earlier, in March 2026, the Cabinet of Ministers adopted Resolution No. 1541, which expanded the war risk insurance program. According to this resolution, the maximum amount of compensation for insurance premiums for businesses was increased from 1 million UAH to 3 million UAH. Additionally, the deadline for submitting claims for payment was shortened to 31 days after the contract was signed. For enterprises operating in frontline regions, the possibility of compensation for damaged property up to 30 million UAH was also provided.
In the state budget for 2026, over 2 billion UAH has been allocated to support the agricultural sector and related insurance programs. Of this amount, 1.8 billion UAH will be directed towards compensating the cost of agricultural machinery produced in Ukraine as part of the “Made in Ukraine” policy. Separate limits have also been allocated for partial compensation of insurance premiums for producers of winter crops and agro-processors, underscoring the government's commitment to support the agricultural sector in the face of modern challenges.