At a regular Cabinet meeting chaired by Deputy Prime Minister Tigran Khachatryan, the Armenian government discussed partial compensation for land users in eight provinces who suffered 40–100% crop damage due to hailstorms in 2024 and 2025. The assistance program covers Aragatsotn, Ararat, Armavir, Gegharkunik, Lori, Shirak, Tavush, and Syunik provinces.
Minister of Economy Gevorg Papoyan noted that since 2020, Armenia has piloted an agricultural insurance system. However, due to high loss ratios, insurers have generally been reluctant to sign contracts.
Papoyan stated that the government is now reviewing the agricultural insurance practices of Spain and Turkey, considered among the best in the field, according to the government press service.
“In 2025, the government expanded support for the insurance system, subsidizing 70% to 80% of premiums and covering losses exceeding 200% for insurers. Still, the volume of insured land remained low. The government also supports the use of hail protection nets through loans and subsidies, though these are mainly used in intensive orchard programs,” Papoyan said.
Due to insurers’ continued hesitancy in 2024, Papoyan said, the government proposes to offer partial compensation in both 2024 and 2025 to land users whose crop and orchard areas suffered 40–100% hail damage.
Compensation will be based on the primary production costs of crops, aimed at stabilizing farmers’ finances and ensuring agricultural operations can resume the following year.
To receive support, eligible land users must apply to their local communities by October 31, 2025. Communities will summarize applications by November 10 and forward them to regional commissions, which will review and submit them for final approval by the national commission within three working days.
