According to Deputy Minister of Economy, Arman Khojoyan, data available from the Statistics Committee show that GDP grew by 1.4% in the agricultural sector in 2020. 2.3% growth was recorded in crop production and 0.6% growth - in livestock. 228,000 hectares of arable land were cultivated, with some 155,000 plots of irrigated land. Among the state-supported programs, the leasing program gained strong momentum in 2020, under which 295 units of agricultural machinery were acquired, while the number of beneficiaries almost doubled.
A rural insurance program was implemented in 6 regions, covering 2 crops. In 2021, the program shall be implemented nationwide, covering a total of 11 crops. The pedigree cattle breeding program proved quite effective last year. It was facilitated by the UNDP-supported Sustainable Communities program and the Miasin project, implemented in cooperation with the Ministry of Economy of the Republic of Armenia. The project implies construction of "smart" livestock buildings.
Under a World Bank-backed lending program, relevant contracts have been signed with 57 processing companies to upgrade their production facilities and introduce food safety systems. As for the state-subsidized agricultural credits, the number of loans has increased more than 4 times in 2020 as compared to 2019. The loan portfolio has almost doubled in volume.
All the developments in the Armenian agricultural field may also provide for significant opportunities for the insurance industry not only on insuring crops or livestock, but also agricultural machinery of production facilities, especially if their acquisition is backed by commercial credits.
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