In the spring of 2014, the first mutual funds that will cover farming operation’s losses in the face of climactic disasters or disease not covered by insurers will begin operating in Romania. The funds will act to stabilize agricultural incomes as they will also ensure against economic deficits as the result of price fluctuations, provide lower insurance costs, and provide easier access to financing and cheaper bank loans. Sixty five percent of compensation will be provided by EU funds, and the remaining 35% will come from member contributions. Pro Agro will start with approximately 1,300 members accounting for 4 million hectares of farmland.
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