The European Commission said on Tuesday it had approved "a EUR 1.3 billion Polish scheme to support agricultural producers to pay insurance premiums covering the risk of damage to certain vegetable products and livestock species."
The EU executive added that "the scheme aims to ensure coverage for the risk of damage to certain vegetable products and livestock species caused by certain adverse climatic events, such as hurricanes, floods, landslides and avalanches."
It is "open to small, medium, and large companies active in agricultural primary production in Poland who subscribe insurance coverage with insurance companies selected by the Polish authorities following an open tendering procedure."
According to the European Commission's statement, "the eligible beneficiaries are entitled to receive an aid amount of up to 65 percent of their insurance premiums," provided that those do not exceed certain thresholds.
"For the event of drought specifically, the scheme includes a state reinsurance mechanism whereby Poland will cover part of the compensation payments that insurance companies would need to pay to agricultural producers," the European Commission said.
Effort to 'ensure long-term food security' in Poland
Margrethe Vestager, Executive Vice-President of the European Commission in charge of competition policy, was quoted as saying that "this EUR 1.3 billion measure will foster a resilient agricultural sector in Poland and ensure long-term food security."
She added: "It will help protect agricultural producers against losses due to adverse climatic events and hence keep their incomes stable. All without unduly distorting competition."
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Source: PAP, europa.eu