"Companies owned mainly by oligarch officials insure their farms"

In recent days, rains and hail have caused serious damage to cultivated areas in a number of regions of Azerbaijan. In particular, there are complaints about serious damage to farmers' vegetable fields in the western region. However, many farmers admit that they have not insured their acreage.

In their statements to Radio “Azadlig,” the residents of the village of Gurzalar of the Geranboy  region tried to explain the absence of insurance of their plots by a bureaucratic factor. "Because you need a lot of documents. We did not believe that we would be paid insurance if something happened, " said a resident of the village, who did not want to give his name.

According to residents, their products were also damaged in warehouses. "The potatoes have deteriorated the most. So, what should we do with this damage?" one of them asked.

Villagers also complain that they cannot calculate the amount of damage yet. "My farm is on the other side of the road. The flood has washed away the road, and we can't go there."

It was not possible to talk to the regions’ leadership on this issue. However, the Ministry of Agriculture Turan reported that the damage caused to farmers who insured their plots in areas of natural disasters will be compensated: "Employees of the Agricultural Insurance Fund have started investigating farmers' appeals in connection with damage to insured gardens and acreage in the districts. Appeals of farmers and entrepreneurs who have insured their acreage and farms are registered. The investigation is being conducted with the participation of independent experts on agricultural insurance."

The ministry added that since yesterday, on May 1, experts have begun to inspect the territories where the insured event occurred: "Experts record the incident and its consequences, conduct a preliminary calculation of the damage caused. After the investigation is completed, payments for insured events will be made in accordance with the law."

The Turan Agricultural Insurance Fund reported that 92 appeals were received due to the damage caused to farms by unstable weather conditions: "After calculating the damage to the insured farms, payments to farmers will begin on the basis of the insurance contract."

The Fund stressed that last year 2.39 million manats of insurance payments were made to farmers for crop and livestock insurance: "This is more than 3.9 times higher than in 2021. 70.3 percent of the amount paid during the past year accounted for insurance payments for crop production, and 29.7 percent -for livestock. In 2022, 249 thousand 946 hectares of land and 13 thousand 102 heads of cattle were insured. The area of damage amounted to 27 thousand 912 hectares, and the number of dead cattle - 418 heads."

An expert on agriculture, Vahid Maharramli, told “Azadlig” Radio that the issue of insurance has not been resolved in Azerbaijan for many years: "Now there are intense rains, flood waters have formed, and damage has been done to agriculture. This is very small compared to the number of farmers affected by the drought. But drought insurance contracts are not concluded."

According to the expert, small farmers are not interested in insuring their farms: "Hail falls annually, floods form. But farmers in most cases cannot justify an insured event... Farmers do not trust insurance companies. Very few-3-4 percent of small farmers -insure their farms."

He stressed that mainly large farms, companies owned by oligarch officials insure their farms.