BAKU, Azerbaijan, July 22. The number of farmers and agricultural enterprises in Azerbaijan benefiting from the state-supported agricultural insurance mechanism is rapidly increasing.
Data obtained by Trend from the Agricultural Insurance Fund (AIF) indicates that insurance coverage and compensation related to cherry orchards—one of the country’s key fruit crops—are also on the rise.
The AIF reports that within the crop insurance framework, 48 types of crops from 41 plant species are currently covered. A significant share of these insured crops are fruits, and nearly all fruits cultivated in the country are now included in the insurance system.
In 2024, cherry orchards spanning 119 hectares across 14 districts were insured. In 2025, this figure grew to 228 hectares insured by 110 farmers across 15 districts. The districts with the highest insured cherry orchard areas include Guba, Gusar, Khachmaz, Agdash, Aghstafa, Tartar, and Shabran.
“The volume of insured produce is also increasing. While in 2024, the total insurance coverage for cherry orchards stood at 1.4 million manat ($823.5), in 2025, this figure has tripled, reaching 3.9 million manat ($2.2 million).
As insured areas and coverage amounts grow, so does the volume of insurance premiums collected from cherry orchards. In 2024, premiums totaled 58,000 manat ($34,117), with 50 percent of this covered by the state. Farmers thus paid only 29,000 manat ($17,058) in insurance fees,” the Fund noted.
In 2025, due to the expansion in insured area and expected harvest volume, the total insurance premium for cherry orchards increased to 90,000 manat ($52,941). Considering the state-funded half, farmers paid 45,000 manat ($26,470).
The AIF insures orchards and produce against various risks, including hail, storms, flooding, excessive snowfall, damage from hail, frostbite, wild animal attacks, third-party actions, plant diseases, and invasive pests. Additionally, three crops—cherry, grape, and cotton—are also insured against damage from torrential rains, which can cause cherry skins to crack, rendering the fruit unsellable.
“Alongside the increase in insured orchards, compensation payments for cherry orchards are also growing,” the AIF stated. “We continue to receive claims concerning insured cherry orchards. Our agricultural insurance experts are deployed to the affected areas to assess the damage and calculate compensation.”
Based on these assessments, during the 2022–2023 growing season, cherry orchard owners in Khachmaz, Ismayilli, and Gusar received a total of 52,800 manat ($31,058) in insurance compensation for various incidents.
In the 2023–2024 season, farmers and agricultural businesses in Aghstafa, Samukh, and Shamkir were paid a total of 83,800 manat ($49,294). In total, over the past two years, cherry orchard compensation payments amounted to 136,600 manat ($80,352).
In 2025, due to severe weather conditions, the Fund has so far received reports of damage across 36 hectares of cherry orchards. These orchards were expected to yield produce worth 1.2 million manat ($705.8). However, the Fund clarified that this does not mean the entire crop has been lost—only part of the affected areas has been damaged.
All reported orchards were inspected by independent experts, and initial damage assessments have been carried out. A final evaluation will be conducted closer to the harvest, after which the exact amount of damage will be determined and insurance payments made accordingly.
“Given the growing interest of farmers in insuring orchards and the intensifying impact of natural events, compensation payments for fruit orchards are expected to rise further in 2025.
Taking into account increasing climate risks and other threats, the Agricultural Insurance Fund once again calls on orchard owners and farmers to protect their farms through state-supported agricultural insurance,” the statement concluded.
