Agricultural Insurance Payouts in Russia Reach Record Highs

September 25, 2026 · Tarım Pusulası

Agricultural insurance payouts in Russia hit a historic peak of 6.5 billion rubles in the first half of 2026, with state-supported policies accounting for 76% of the total.

According to data from the National Union of Agricultural Insurers (NSA) of Russia and the Central Bank of Russia, agricultural insurance payments reached a record level of 6.5 billion rubles in the first half of 2026. In the first six months of the year, the compensation ratio for insurance companies was 96%. While premium income saw a 10% increase compared to the same period last year, the growth rate in damage payments to producers reached 20%. A significant portion, 76%, of the total payments were disbursed to agricultural producers who suffered losses under state-supported agricultural insurance contracts.

The total insured cultivated area in the first half of 2026 across the country increased by 2% to 7.5 million hectares, up from 7.4 million hectares in the same period last year. When including the 6.5 million hectares covered by policies for winter crops, the total area under agricultural insurance for the 2026 growing season exceeded 15 million hectares. Korney Bijov, Chairman of the NSA, noted that this expansion marks the third consecutive year of sustained coverage in agricultural insurance, and total payout expectations for the end of 2026 are projected to exceed 7 billion rubles.

Although the growing season was generally calm from an agro-climatic perspective, extreme meteorological events in various regions directly impacted producers. Local states of emergency were declared in the North Caucasus due to heavy rainfall, hail, and floods, while emergency decisions were made in Omsk, Novosibirsk, and Altai Krai in Siberia due to drought during the harvest period. Initial compensation payments to producers for hail damage in the Stavropol region alone surpassed 100 million rubles.

NSA Chairman Korney Bijov reported that drought-related losses in 2026 are not expected to be as severe as those experienced in the southern regions of Russia during 2024-2025. In the Southern and North Caucasus federal districts, approximately 7.5 billion rubles in compensation was paid out solely due to drought over the 2024-2025 period, with total damage payments, including all risks such as frost, reaching 13.4 billion rubles. Despite soil drought observed in five districts of the Rostov region in June, the damage was reported to be localized.

The early payment system, introduced in 2026 under the multi-risk insurance program, allows producers to receive 50% of the calculated compensation amount without waiting for the final post-harvest Rosstat report. Indeed, initial payments totaling 116 million rubles were made early in July-August to agricultural enterprises in Stavropol that suffered hail damage. The NSA also supports the gradual linkage of agricultural insurance with low-interest agricultural loans as a critical step to protect the financial structure of producers at risk of being unable to repay their loans in the event of damage.

Pilot projects are underway in the Nizhny Novgorod, Samara, and Novosibirsk regions to obtain real-time data from specialized meteorological stations, aiming to accelerate damage assessment processes in agricultural insurance. As part of digitalization efforts, satellite monitoring technologies and mobile notification systems are planned for more active use in field inspections. The Russian government aims to bring 30% of the country's total cultivated areas under insurance coverage by 2030, a target that the NSA management emphasizes is fully achievable thanks to the established technological infrastructure.

Türkçe