Financial stability

Agricultural risks

Agricultural production is one of the sectors of the national economy most exposed to risks from a variety of external and internal factors.

In an ever-evolving socio-economic environment, all agribusiness, regardless of size or experience, is exposed to risk and uncertainty. This is due to the unpredictability of economic events, weather, climate change, price volatility, foreign trade restrictions, changes in food standards and norms, decisions by regulatory bodies – including politically motivated ones, increasing environmental concerns, and media campaigns. These and other factors result in the presence of high risk for all those involved in food production.

Among the many methods and instruments for dealing with risks in agricultural activities , insurance is important. The main legal acts that regulate agricultural insurance are:

  • Act of 23 April 1964 Civil Code,
  • Act of 22 May 2003 on insurance activity,
  • Act of 22 May 2003 on compulsory insurance, the Insurance Guarantee Fund and the Polish Motor Insurers’ Bureau,
  • Act of 7 July 2005 on insurance of agricultural crops and livestock and implementing acts to the aforementioned. Acts.

Legislation made it compulsory in 2017 for farmers to take out insurance contracts with coverage:

  1. farm insurance and farmer’s liability insurance – any natural person engaged in agricultural activity, with a total area of arable land exceeding 1 ha, paying agricultural tax in part or in full, is obliged to take out compulsory insurance for farmer’s liability and agricultural buildings,
  2. third party liability insurance for vehicles – all motor vehicles registered in the territory of our country are subject to this obligation: motor vehicles, agricultural tractors, mopeds, trailers and semi-trailers, slow-moving motor vehicles, historic vehicles,
  3. insurance for at least 50% of field crops and livestock – this type of insurance is required to be taken out by farmers who have received direct payments. The insurance cover should include:
    • cereals, maize, rape, colza, hops, tobacco, ground vegetables, fruit trees and bushes, strawberries, sugar beet, potatoes or legumes must be insured against at least one of the following factors: hurricane, flood, driving rain, lightning, hail, landslide, avalanche, drought, bad winter weather or spring frost;
    • cattle, horses, pigs, sheep, goats or poultry must be insured against at least one of the following: hurricane, flood, driving rain, hail, lightning, landslide, avalanche, emergency slaughter.