The Cabinet of Ministers has introduced a military risk insurance mechanism for farmers, which provides for reimbursement from the budget of up to 60% of the insurance premium paid, according to Taras Vysotsky, First Deputy Minister of Economy, Environment, and Agriculture.
“Access to agricultural insurance in wartime is becoming not just a financial tool, but a key condition for economic stability. That is why the government has introduced a new mechanism: the state reimburses up to 60% of the insurance premium for farmers in frontline communities and up to 45% for other producers,” he wrote on his Facebook page following a meeting with representatives of the agricultural sector.
The Deputy Minister noted that agricultural processing companies are currently facing not only military threats but also challenging weather conditions, such as drought or spring frosts. Due to this combination of factors, the cost of insurance services in the sector remains high.
Vysotsky noted that the Ministry of Economy’s strategic goal is to create a market-oriented system that will combine private insurance, reinsurance, and state support. The ministry is currently consulting with businesses to determine acceptable insurance rates, remove barriers to access to financing, and compile a list of risks that remain uninsured.
“We are ready to carefully consider and gradually implement the solutions and proposals developed by the business community. It is precisely this kind of dialogue that allows us to shape state policy based on the real needs of the economy,” the deputy minister concluded.
As reported, in March 2026, the Cabinet of Ministers adopted Resolution No. 1541, which expanded the military risk insurance program. The maximum amount of insurance premium compensation for businesses was increased from UAH 1 million to UAH 3 million, and the deadline for submitting a claim for payment was reduced to 31 days after the contract is signed. For enterprises operating in frontline regions, compensation for damaged property is available up to UAH 30 million.
The 2026 state budget allocates over UAH 2 billion to support the agricultural sector and related insurance programs, of which UAH 1.8 billion is earmarked to compensate for the cost of Ukrainian-made agricultural machinery under the “Made in Ukraine” policy, as well as separate allocations for partial compensation of insurance premiums for winter crop producers and agricultural processors.
