After the Storms: Farmers Lose Crops as Compensation Covers Only Part of the Damage

Following the latest wave of storms and hail, many farmers have once again suffered serious losses. The state provides compensation for some of them, but only under certain conditions, and the payments do not always cover the actual damage. When is compensation paid, what proportion of losses is reimbursed, and why do many farmers still choose not to insure their crops?

Farmer Lyubomir Dimitrov has been growing cherries and pears on 130 decares of land in the Nevestino area for more than 20 years.

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Lyubomir Dimitrov, farmer: “100% of all types of fruit have been destroyed.”

It is the second consecutive year this has happened, yet Lyubomir has not insured his fruit trees.

Lyubomir Dimitrov, farmer: "At least I don't know a single colleague who has taken out insurance. This area is such that frost usually occurs before 20 April, but insurance companies do not cover damage caused before 20 April."

Insurance brokers say there may be exceptions, but these significantly increase the cost of insurance.

Stefan Yordanov, insurance broker: "Very often, something outside the standard terms and conditions can be negotiated for a specific case, a particular crop or something more specialised. Everything is negotiable. Everything has its price. Naturally, premiums are higher when there have been previous losses, because the insurer has to pay out and also needs to collect enough to cover those losses."

Uninsured farmers affected by severe weather may receive state assistance. However, the state covers only 50% of the production costs, and only if the crop has been completely destroyed. Insurance policies, by contrast, offer more options.

Stefan Yordanov, insurance broker: "It can be agreed on the basis of yield loss per tonne or with a certain excess, so to speak."

Lyubomir Dimitrov, farmer: "We farmers are also somewhat neglecting this option, even though the state subsidises up to 70% of the insurance premium, so it really makes sense to take out insurance."

Despite the increasing frequency of severe storms, there has been no noticeable rise in demand for insurance policies covering natural disasters.

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