Latvian farmers and insurers clash over crop-loss payouts
After the difficult 2025 season, Latvian farmers and insurers are in dispute over payouts, even though state support for insurance premiums is the largest to date. The number of insured crop growers has fallen, and some farmers doubt insurance is worthwhile.
Latvian agriculture has faced force majeure conditions, including drought, heavy rain and frost, for a fourth year, and debate over crop insurance is intensifying. Farmers, insurers and the Ministry of Agriculture are weighing whether the system works, as some farms have met insurer refusals and court action after 2025 losses.
Market figures
Jānis Abāšins, president of the Latvian Insurers Association, says crop and planting insurance covered 40 farmers in 2014, 939 in 2021 and 641 in 2025. Premiums in this segment rose from just under 0.47 million euros in 2014 to 12.45 million in 2022, then fell to 9.5 million last year. In livestock insurance, the number of farms dropped from about 2,200 to 1,137. He adds that the data exclude cover from German insurer Vereinigte Hagel, so overall totals are higher. A 2025 study found 53% of grain-growing areas are insured.
State support
Normunds Šmits, parliamentary secretary at the Ministry of Agriculture, says EU-backed support covers up to 50% of policy costs, and up to 70% for fruit and vegetable areas. About 2,000 farmers use insurance each year, with support of roughly 11 million euros annually. Last year 397,000 hectares of crops and 221,000 suckler animals were insured. The Rural Support Service has allocated 13.7 million euros this year to partly cover premiums.
Farmers' experience and criticism
Raivo Dzilna, chairman of the board of Agrofirma Lobe, a large wheat and legume grower, says his company group spent 700,000–800,000 euros a year on insurance. Last year heavy rain caused grain crop losses of up to 70% in places, but the insurer refused to pay and the company has gone to court. He has not bought a policy this year.
Rolands Feldmanis, chairman of the Latvian Agricultural Cooperatives Association, criticises insurers' wish to recoup losses through higher premiums and asks whom public support ultimately serves. Šmits admits the ministry has no data on delayed or refused payouts.
