January 18, 2012

As agriculture is considered one of the most risky branches of economics, the Bashkir agrarians intend to ensure crops in 2012, the Republic of Bashkir's Ministry of Agriculture reported.

A budget of RUB117 million (US$3.7 million) is allocated to both levels for insurance of crops: RUB95 million (US$3 million) - by the federal exchequer and RUB22 million (US$697,000) - by the budget RB.

The severest drought in summer 2010 has become a good lesson for the agrarians. That time the emergency situation was announced in the Republic by five hazardous natural phenomena at once. The death of crops has been registered on the area of more than 1,239,000 hectares. The drought has adversely affected the Republican economics - in total complexity 1,893 agricultural enterprises and farms have suffered the drought that time. The material loss was estimated at billions of rubles.

Bashkortostan has received RUB3.88 billion (US$123 million) of credits from the federal exchequer for liquidation of the drought's after-effects.

In 2012 the federal exchequer allocates RUB6 billion (US$190 million) for agricultural insurance and in opinion of the experts this step allows increasing the share of insured territories up to 70%. According to the new federal law, coming into force on January 1, the state pays a half of the insurance premium according to the contract, thereby lowering the financial burden upon the agrarians. The list of the objects, subject to insurance, is widened in accordance with the law. The state support for insurance of the risks of murrain in cattle-breeding is planned beginning from the next year too.