ArmInfo. Over the past two years, the state has compensated farmers whose crops were damaged by hail, totaling over 2.7 billion drams. Armenian Economy Minister Gevorg Papoyan announced this on his Facebook page.
According to him, approximately 14,000 farmers have received compensation. In total, the minister noted, farmers from 24 communities in eight regions of the country suffered hail damage in 2024-2025. Papoyan emphasized that the state has already fully compensated the beneficiaries for their losses.
As a reminder, the agricultural insurance program was launched in 2020.
The program's indicators increased year over year until 2023. In 2023, 13 agricultural crops were insured for 4 risks, covering a total area of 11,662 hectares. In 2023, insurance premiums amounted to 1.8 billion drams, with compensation provided in the amount of 2.7 billion drams.
In 2024, due to high losses recorded in 2023, the reinsurance company withdrew from the Armenian market. To mitigate the risks of insurance companies, the Government of the Republic of Armenia assumed this function, also subsidizing insurance premiums. In 2024, peaches, plums, apples, cherries, watermelons, melons, and potatoes were insured against hail, while grain crops (wheat/barley/oats) were insured against drought. According to the National Agricultural Insurers Agency (AINA), the total insurance premium for the 2024 agricultural year amounted to approximately 21.9 million drams, 27 insurance contracts were concluded, and the total insured area was approximately 247 hectares. As a result of the concluded contracts, the area of insured gardens and arable land amounted to approximately 247 hectares.
For the 2025 agricultural year, a subsidy on insurance premiums of up to 70-80% was introduced, replacing the previous 50-60%. In 2025, 13 agricultural crops (grapes, apricots, peaches, potatoes, plums, apples, cherries, watermelons, melons, wheat, barley, and oats) were insured against four risks (spring frost, drought, hail, and fire). For some crops, insurance did not cover all risks; in particular, for grain crops (wheat, barley, and oats), only drought insurance was available.
According to AINA data, in 2025, gross insurance premiums amounted to approximately 1.9 million drams, with subsidized premiums amounting to approximately 1.3 million drams. 32 insurance contracts were concluded, and the total insured area was approximately 20 hectares, of which 5.7 hectares were for grapes, 1 hectare for peaches (against hail and fire), 5.4 hectares for apple trees, 0.1 hectare for plums, 2 hectares for potatoes, 1.5 hectares for watermelons and melons, 1.5 hectares for cherries and sweet cherries (against hail), and 3 hectares for grains (against drought). As a result of insured events, insurance companies paid out insurance compensation totaling 788,840 drams. The loss ratio was 42%.
In February 2026, the state resumed the agricultural crop insurance program. The Minister of Economy stated that the following crops will be covered by insurance in 2026: apricots, grapes, apples, peaches, plums, melons, watermelons, potatoes, cherries, sweet cherries, wheat, barley, and oats. Insured risks include hail, spring frosts, and drought. The state will compensate a portion of the insurance premium: 40% for apricots, wheat, barley, and oats, and 60% for other crops. According to the minister, the following insurance companies are participating in the program: Liga Insurance, SIL Insurance, Nairi Insurance, Rego Insurance, Armenia Insurance, and EFES Insurance.
At the same time, the Ministry of Economy is confident that the agricultural insurance system requires fundamental reform. The new, reformed program is promised to be launched in 2027. The initiative was approved by the government of the Republic of Armenia on January 22, 2026.
