Sharp decline in Moldova’s stone fruit orchard insurance against spring frosts



Moldova, a country in Eastern Europe known for its fertile agricultural lands, has been facing a sharp decline in insurance coverage for its stone fruit orchards against spring frosts. This is concerning news for the farmers who rely on their orchards for their livelihood.

Stone fruit orchards, such as cherry, peach, and plum trees, are particularly vulnerable to spring frosts. These frosts can damage the delicate blossoms and young fruit, leading to a significant reduction in crop yield. To protect themselves from financial losses due to such events, farmers typically purchase insurance coverage for their orchards.


However, recent reports suggest that the amount of insurance coverage for Moldova’s stone fruit orchards has decreased sharply. This is due to several factors, including high insurance premiums, the perception that the risks are low, and a lack of awareness about the importance of insurance coverage.

The high insurance premiums are a significant factor that has discouraged many farmers from purchasing insurance coverage. In Moldova, insurance premiums are calculated based on the level of risk involved, and stone fruit orchards are considered to be high-risk due to their vulnerability to spring frosts. As a result, insurance premiums for these orchards are relatively high, making them unaffordable for many farmers.

Another factor that has contributed to the decline in insurance coverage is the perception that the risks are low. Many farmers believe that the weather patterns have become more predictable, making it less likely for them to experience losses due to spring frosts. However, this perception is not entirely accurate, as spring frosts can occur unexpectedly and cause significant damage to orchards.

Finally, there is a lack of awareness about the importance of insurance coverage among Moldovan farmers. Many farmers are not aware of the potential financial losses they may face due to spring frosts, and therefore do not see the value in purchasing insurance coverage.

The decline in insurance coverage for Moldova’s stone fruit orchards is a concerning trend. Farmers who are unable to purchase insurance coverage are at greater risk of facing financial losses due to crop damage caused by spring frosts. It is crucial for the Moldovan government and insurance companies to work together to develop affordable insurance policies and increase awareness among farmers about the importance of insurance coverage. This will help to protect the livelihoods of Moldova’s farmers and ensure the continued growth of its agricultural industry.

The amount of insurance of stone fruit orchards against spring frosts in Moldova has sharply decreased

The number and amount of insurance transactions for cherry, sour cherry, apricot, and peach orchards against spring frosts in Moldova have significantly decreased in 2023 compared to last year, according to brokers of Moldovan insurance companies.

The reason behind this decline is the administrative restrictions imposed under the legislation on subsidized agricultural risk insurance at the beginning of this year. These changes have set limits on policyholders’ debts to insurance companies.

Debts exceeding these limits can cause severe problems for the companies in the National Commission for the Financial Market, including the introduction of an external management regime.

Insurance companies face a challenge due to long delays in receiving subsidies (compensation in the amount of 70% of insurance premiums) from the National Fund for Subsidizing Agricultural Producers and Rural Areas, which results in large debts.


Consequently, insurance companies have set strict limits on their brokers for crop insurance against spring frosts, especially for early stone fruit orchards. However, there is a draft law that might abolish the aforementioned restrictions in the law on subsidized insurance, which has a good chance of being passed by Parliament. Therefore, farmers and insurance companies may still insure pome fruit orchards against late spring frosts in 2023.