"At the moment, the compulsory agricultural insurance does not offer real benefits for farmers", declared Tigran SARGSYAN, Prime Minister of Armenia, according to www.news.am. "We have consulted with both the Agricultural Ministry and the representatives of the Central Bank and we reached the conclusion that, taking into consideration the actual income of farmers, this mechanism would prove to be more of a burden and an additional expense", added Tigran SARGSYAN.

According to the National Statistics Institute of Armenia, the gross volume of agricultural production of the country reached AMD 617 billion or USD 1.62 billion. The medium income for each farm (Armenia has around 340,000 farms) is around USD 4.7 thousand a year, without taking into account the expenses each farmer makes.

SARGSYAN claimed that other solutions are needed in order to encourage the agriculture, such as granting subventions and raw materials distribution.