The Plenary Session of the Parliament voted the package of legislations for the creation of a fund for risk management and compensation of losses in the agricultural production, which essentially abolishes the Agricultural Insurance Organization.
The Plenary Session previously voted in favor of an amendment by DISY, DIKO, EDEK to reduce farmers' contributions to the fund by 10%. DISY MP Onoufrios Koullas clarified that the amount that will be lost with the reduction of farmers' contributions will be covered by the state budget.
DISY amendment to inform farmers about the damage was also voted in favor.
AKEL amendment to reduce contributions by 20% was rejected with 17 votes in favor, 25 against.
Specifically, a law was passed unanimously, the transfer of responsibilities of the Agricultural Insurance Organization and the transfer of the organization's staff to the Department of Agriculture and at the same time the creation of a fund for risk management and compensation of losses in agricultural production.
It was also voted with 45 votes in favor and 2 against the transfer of responsibilities of the Agricultural Insurance Organization and the transfer of the organization's staff to the Department of Agriculture and at the same time the creation of a fund for risk management and compensation of losses in agricultural production.
It was unanimously passed in a law and a bill that brings the required amendment to the law on agricultural insurance.
The Minister of Agriculture welcomes the vote on the agricultural insurance reform
The Minister of Agriculture Costas Kadis welcomed the vote of the Agricultural Insurance reform by the Parliament
"Today could be described as historic for the sector of Agriculture and Rural Development in Cyprus. "One of the most important reforms that the area has needed for years, that of modernizing the agricultural insurance system, passes from the stage of planning and discussions, to the stage of implementation, with today's vote by the House of Representatives of the three relevant bills." , states in a written statement.
He added that this reform ensures the stability of agricultural income, through a system that is universal, fair and efficient, "a system that takes into account all the risks to which our farmers' crops are exposed, which is becoming especially urgent today." , because of the effects of climate change, which are becoming more and more intense ".
According to him, the passed bills lay a solid foundation for the reconstruction of our rural economy, by reducing bureaucracy and moving to a more efficient and universal risk management system, quality and human.
The new system, says the Minister, covers all primary agricultural production, through the creation of a special Protection and Insurance Fund, which will finance actions for the management of risks from natural disasters and adverse conditions. The Fund will be financed in part by farmers' contributions with a parallel contribution from the State, with the aim of the immediate payment of the provided compensations and aids.
It also states that the new changes in the damage management system offer:
- Total crop coverage with reduced contributions from farmers.
- Coverage of all crops for all risks.
- Ability to re-evaluate, confirm and control the estimates where necessary.
- Inclusion of all existing and future plans / measures related to risk management.
- Immediate and prompt payment of compensation.
- Participation of the representatives of the rural world in the Management Committee of the Fund.
"The fact that the reform was supported by all the agricultural organizations and by the vast majority of the parties reflects the universal acceptance of the new agricultural insurance system, which we reached through intensive consultations with all stakeholders. I would like to thank the agricultural organizations, but also all the organized bodies of our rural world for the good cooperation that has been developed as well as the members of the Parliamentary Committee on Agriculture for the constructive dialogue, through which we have today reached a major reform for "Risk Management in Agricultural Production", the Minister concludes.