Czechia to subsidize crop insurance for large farms from 2027

The Czech government has approved a new program: from January 2027, state insurance support will extend to large agricultural businesses as well. Small and medium-sized farms already receive such payments. For large companies, the state will now reimburse up to 45 percent of the insurance premium for specialty crops and up to 30 percent for other crops and livestock.

CZK 200 million a year

The program is expected to cost CZK 200 million annually. Applications will be processed by the Support and Guarantee Fund for Farmers and Foresters (PGRLF). The Agrarian Chamber welcomes the decision. “Frost and drought do not distinguish between small, medium and large farms,” the chamber’s president, Jan Doležal, told Novinky. In his view, the conditions should be fair to all farmers.

The state already tried to extend the support in 2018, under Andrej Babiš’s first government. The then minister, Jiří Milek, who headed the ministry for only a few months, asked the European Commission for approval. The procedure dragged on and raised the problem of older subsidies: some large companies had been receiving money from a program intended only for small and medium-sized businesses. Last year, the European Commission ordered the unjustified aid to be repaid with interest.

Finance Ministry warned about spending

During the inter-ministerial comment procedure, the Ministry of Finance pointed out that the Ministry of Agriculture is already short of money, especially for forestry and water management. A further CZK 200 million a year, it said, could deepen the problem. “We ask you to consider whether it is necessary to introduce a new program that will generate further demands on the state budget,” the finance officials said.

They also asked what the state would actually get for the new spending: according to them, the documents did not make clear whether the payments would raise agricultural output or help bring food prices down. The ministry therefore demanded specific benefits and measurable results.

Source: novinky.cz