Extreme weather events are increasingly impacting agriculture. Storms, heavy rainfall and sudden frosts are causing millions of złoty in losses to crops and infrastructure. Yet many farmers continue to rely only on mandatory insurance, which provides protection—but only within a strictly defined legal scope. Experts emphasize that the rising number of weather-related damages requires a new approach to risk management, where voluntary insurance for property, crops and livestock can play a crucial role. Extensions in the “all risk” formula are becoming increasingly important.
“Hurricanes and strong winds at our latitude are occurring more and more often, especially in late summer and autumn. Farmers are particularly affected, because these phenomena simultaneously damage both agricultural infrastructure and crops. In infrastructure, we’re talking about damage to residential buildings, power lines, and agricultural equipment. In crops, losses can reach hundreds of thousands or even millions of złoty, especially since hurricanes and strong winds do not stop at a single village—they typically cover very large areas,” says Rafał Czerski, Regional Sales Director for AGRO Ubezpieczenia in the Lublin region, in an interview with Newseria.
According to data from the Copernicus Climate Change Service and the World Meteorological Organization, extreme weather poses a growing threat to Europe. The year 2024 was the warmest in European history. In Poland, this summer’s rainfall was assessed by IMGW-PIB as average: the total area precipitation reached 211.1 mm, or 94.7% of the 1991–2020 norm. However, local violent storms and windstorms—such as those that hit Lower Silesia in early June and the Opole, Silesian, Świętokrzyskie, Warmian-Masurian and Lublin regions in late July—caused enormous damage to crops. Increasingly, these are highly localized events that do not meet the rigid definitions of phenomena like hurricanes, making compensation claims more difficult.
“The elements most exposed to hurricane or strong-wind damage are roofs, roofing materials, doors and windows—components that take the first impact of wind. Basic insurance covers named perils with clear definitions—so, for a hurricane to be recognized, wind speed must exceed 24 m/s. If we’re talking about lower speeds, such as 16 m/s, such damages can be covered only if the insurance policy includes an appropriate extension,” explains Czerski.
The AGRO Ubezpieczenia expert stresses that this definitional difference often determines whether a farmer receives compensation. Additionally, when buying a policy, many farmers overlook important components of agricultural infrastructure—for example photovoltaic installations, heat pumps, silos, sheds, farm outbuildings and dryers. Comprehensive protection requires an “all risk” extension, which covers all risks except those explicitly excluded in the general terms.
Under current law, every farmer must have third-party liability (OC) insurance covering financial consequences of damages caused in connection with ownership of a farm. Insurance for farm buildings against fire and other random events (such as floods, hail, lightning strikes) is also mandatory and provides basic protection against unforeseen events. The obligation applies to buildings larger than 20 square meters, and new buildings must be insured on the day their roofs are completed. Farmers who receive direct payments must insure their crops against at least one of the following risks: flooding, drought, hail, winterkill or spring frost. At least 50% of cultivated area must be insured.
However, mandatory insurance covers only the most basic scope. Industry data show that many farmers do not purchase additional voluntary coverage, even though such policies may include protection for machinery or energy installations. Experts note growing interest in extended insurance packages, especially following recent storm seasons. The number of crop and farm-property insurance contracts has increased in recent years, though many farms still rely solely on mandatory policies.
“Today, mandatory insurance is no longer sufficient, because it does not cover all the farmer’s needs—whether related to assets or crops. Weather risks are now so diverse and cause so much damage that farmers who want proper coverage for their assets, infrastructure, machinery and crops must reach for the broadest possible insurance solutions,” says Czerski.
“Mandatory insurance is basic protection—typically covering fire and lightning. We encourage farmers to consider additional insurance; we offer such products. In that case, the policy covers virtually everything, protecting the farmer in all potential events and disasters,” adds Marek Szczepanik, Management Board Member of AGRO Ubezpieczenia.
According to the Ministry of Agriculture and Rural Development (MRiRW), over 209,000 crop-insurance contracts were signed in 2024, with a total insured value of 32 billion złoty. The insured area exceeded 3.8 million hectares. In the first half of this year, the number of new policies surpassed 144,000, covering more than 2.3 million hectares. For 2025, the Minister of Agriculture has signed subsidy agreements worth 920 million złoty with nine insurance companies, including AGRO Ubezpieczenia.
“One major issue in farm-property insurance is outdated asset valuation. At the moment of purchasing insurance, undervaluation benefits the farmer because premiums are lower. However, if a disaster happens and damage must be compensated, the farmer expects the insurer to cover the full cost of repair or rebuilding. This may be impossible if the insured sum was much lower than the asset’s actual value,” notes Szczepanik.
Many farmers are unaware that, in cases of total loss, the difference between real market value and insured value may translate into significant financial losses. Experts therefore emphasize that updating asset valuations and purchasing extended protection packages are key to receiving full compensation.
“Well-insured farm property means not only having a policy but ensuring it is suited to one’s needs and situation. When damage occurs, the farmer should not have to cover losses out of pocket. The policy should match the risks present on the farm, and the premium should be reasonable and proportionate to the value of the assets,” says Monika Duzdowska, client advisor at Poczta Polska Finanse.
When choosing a policy, farmers should analyze the structure of their assets, the type of production and the farm’s location. Flood-risk areas pose different threats than mountainous regions or farms near forests, where fire spread or wildlife damage may be concerns.
“If a farm includes livestock, their type and value should be assessed. If it focuses on crop production, protection should account for risks related to stored materials and supplies,” adds Szczepanik.
“The cost of agricultural-property insurance varies greatly. It depends on the farmer’s assets, the insured sum, the selected coverage and the insurance company. Costs range from several hundred to several thousand złoty per year, but even the higher premiums are minimal compared with the potential losses a farm might face. Uninsured losses can disrupt financial liquidity, halt agricultural production, reduce income or even lead to bankruptcy,” emphasizes Duzdowska.
The expert adds that it is worthwhile to choose policies that include additional assistance services, such as towing machinery in case of breakdown, technical support or IT help. Accident-insurance coverage, especially in such a high-risk industry as agriculture, is becoming a standard.
