The Agricultural Insurance Organization is a semi-governmental, non-profit oriented organization and functions under the supervision of the State which is implemented by the Minister of Agriculture, Natural Resources and Environment. It has been in operation since 1978 aiming to the welfare of farmers by offering compulsory insurance cover when the insured crops suffer damages from unavoidable natural hazards, covered by the Agricultural Insurance Law.
The central aim of the Organization is the gradual expansion and improvement of the Agricultural Insurance Scheme, so that to offer full insurance cover of all agricultural products against all natural hazards. The premium paid by farmers amounts to 4% for cereals, fodder and potatoes and 3% for the rest of the insured crops, calculated on the expected income of the insured crops. The Government subsidizes the premiums by 50%.
Source: Press And Information Office, Republic Of Cyprus, 2005