Krauze mentioned the hailstorm last summer, which severely damaged some farms. This year, too, the weather is drier in some regions, which is why there is a need to set up an agricultural risk fund to which farmers themselves would contribute and receive money in the event of a crisis.
The Minister said that, for example, it was "very good" to insure cereal crops, but that in other agricultural sectors it was difficult to insure farms or the prices offered by insurers were disproportionate.
Legislation for an agricultural risk fund was already in place around 2012, but at that time contributions to the fund were supposed to be voluntary.
"At that time, some six farmers across Latvia contributed," Krauze said.
"In the countries where risk funds are in place, it is the case that absolutely everyone has to contribute. That is the main task - to convince farmers that a risk fund should be created."
Krauze said that after talks with farmers' organizations, it was concluded that there was support for the creation of a risk fund. Negotiations have also been held with the Minister of Finance, and the main task now is to convince the sector by autumn and to launch the risk fund next year. In addition, insurance options would be maintained in the agricultural sectors where they already exist.
The government this week approved the allocation of €1.13 million to farmers affected by the storm of August 7 last year. If such a risk fund existed, farmers would be able to cope on their own and would only have to ask for help from the state budget in the most extreme cases, the Agriculture Minister said.
