Over the past four years, farmers have received more than 20.5 million euros in crop insurance claim payouts, according to data from AAS "BTA Baltic Insurance Company" (hereinafter – BTA). The largest volume of insurance payouts to farmers for damaged crops has gone to Zemgale – 11 million euros. As Ivo Danče, Director of BTA's Insurance Claims Department, explains, in Zemgale and Kurzeme crops have been damaged mainly by hail and storms, with crops flattened by lodging, while in Latgale and Vidzeme crops have more often been killed by frost. In recent years, the largest single insurance payout – 388,667 euros – was made for hail-damaged wheat crops across 830 hectares in Dobele municipality.
Natural disasters are becoming less predictable – crops in Zemgale have suffered most
The 2024 report by the Latvian Environment, Geology and Meteorology Centre on past and future climate change in the country shows that rainfall is increasing across Latvia, and this trend is forecast to continue right up to 2100. Snow cover in winter has already decreased, and forecasts indicate that this trend will continue in the years ahead.
Overall, the report concludes that the extreme weather currently experienced only sporadically will become the norm in future, with the potential to cause even greater damage. This is confirmed by calculations from the European climate agency – since 2015, the losses inflicted on national economies by natural disasters have risen across the European Union, including in Latvia.
"In our experience, the largest insurance payouts to date have been for weather damage to various crops caused by frost, as well as hail, downpours and strong winds flattening crops through lodging. The largest payouts have been for crop damage in the Zemgale area – for example, 373,482 euros was paid out for weather damage to oilseed rape. The region has seen other significant payouts too – a claim of 238,665 euros for storm and hail damage to wheat fields, while more than 160,000 euros was paid out for crops flattened by lodging. More than 100,000 euros was paid to a farm in Zemgale where winter crops were killed by frost," says Ivo Danče, Director of BTA's Insurance Claims Department.
Hail, storms, frost and downpours show no mercy to cereals in Latgale, Vidzeme and Kurzeme either
BTA's data for the past four years reveals that in Kurzeme the greatest crop losses were caused by hail, damaging field bean, oilseed rape and pea crops – 141,022 euros was paid out to a farm for hail-damaged field beans, while 114,134 euros went towards damage to oilseed rape crops, where roughly 40% of the sown area was affected, and 95,704 euros for hail-damaged pea fields.
In Vidzeme, crop damage has more often been caused by heavy downpours, wind and hail. Oilseed rape and wheat fields have suffered from adverse weather. BTA has paid out 109,888 euros in insurance claims for a damaged oilseed rape field, 94,228 euros for damaged winter wheat and oilseed rape, and 88,420 euros for hail damage to oilseed rape crops.
In Latgale, several cases have been recorded relating to crops being killed by winter frost and to excess moisture – 136,950 euros was paid out in claims for damaged wheat, and in two cases for frost-killed oilseed rape fields – 116,978 euros and 88,475 euros.
"The risks brought by climate change are currently the least predictable of all – and in future they will have a worryingly large impact on yields and on farmers' businesses in general. In the winter period, one of the biggest risks to plants is frost, because as snow cover decreases they are less protected against the effects of the cold. If crops are not insured in good time – which this year is possible until 25 November – there is a strong likelihood that winter crops will not survive and farmers will have to cover the losses out of their own pockets," explains I. Danče.
Protecting a harvest from natural disasters is practically impossible
While more demanding plants in a home garden can be covered over for the winter to protect them from frost, in large crop fields it is almost impossible to shield crops from the effects of natural disasters. Jānis Marčenkovs, agronomist at ZS "Sējas", also stresses that relying on luck means taking on all the financial consequences if misfortune does strike the crops.
"Although there is now a whole range of technology to help with the task, forecasting the weather is still difficult – a forecast may come true, and it may not. When hail, heavy downpours or frost strike crops, it takes only a few minutes or hours to destroy the harvest and turn all the farmers' hard work into substantial losses. That is why insurance is essentially the only thing that helps farmers maintain financial stability in such situations," explains J. Marčenkovs.
He also notes that when natural disasters strike, speed of response is very important – damage must be recorded immediately so that losses can be assessed as quickly as possible, support received and work continued.
About BTA
The insurance joint-stock company "BTA Baltic Insurance Company" is one of the leading insurance companies in the Baltics, offering the widest range of non-life insurance services in Latvia, Lithuania and Estonia. BTA employs more than 1,000 people across the Baltics. BTA's shareholder is "Vienna Insurance Group AG" (VIG), the leading insurance group both in Austria and across the whole of Central and Eastern Europe. More than 50 insurance companies in 30 countries make up a Group with long-standing traditions, strong brands and close relationships with its customers. VIG's 30,000 employees look after the everyday needs of more than 33 million customers. VIG shares have been listed on the Vienna Stock Exchange since 1994. VIG has been awarded an A+ rating with a stable outlook by the internationally recognised auditing company "Standard & Poor's". VIG works closely with "Erste Group" – the largest retail bank in Central and Eastern Europe.