What is Village-Based Yield Insurance?

Climate change is no longer just a theory; it is a harsh reality in the field. Rainfall not occurring on time, sudden heatwaves in spring, or conversely, excessive humidity… All these factors lead to decreased yields, weak grains, or total crop failure, especially in dryland (non-irrigated) farming areas. Village-Based Yield Insurance (formerly known as District-Based Drought Yield Insurance) is an insurance system that compensates for yield losses caused by these climatic risks beyond the farmer’s control, based on the averages across the entire village.

At Panacea Insurance, we describe this product as the “Farmer’s Friend for Rainy (or Dry) Days.” While a hail strike might spare part of a field, drought affects the entire region. This insurance is the strongest shield developed against such total risk.

State Support Increased to 70% in 2025!

Recognizing the severity of drought risk, the Ministry of Agriculture and Forestry took a historic step for 2025. The state premium support rate, previously 60%, was increased to 70%. This means: if we assume the policy premium is 100 TL, the state pays 70 TL, and our farmer pays only 30 TL. This is the highest grant rate in the TARSİM system.

Which Products Can Be Insured? (New Additions)

This insurance is only valid for Dryland Farming areas (irrigated areas are not covered). The strategic products included are:

• Wheat (Bread, Durum)
• Barley
• Rye
• Oats
• Triticale
• Chickpeas
• Red Lentils
• Green Lentils
• NEW (2025): Oilseed Sunflower is now included under drought insurance!
• Certified seeds for these products.

What Does the Policy Cover?

Village-Based Yield Insurance covers the following climatic risks that reduce yield and fall outside the standard hail package (hail, storm, fire, etc.):

• Drought: The inability of the plant to develop due to insufficient rainfall.
• Frost: Yield reduction caused by frost events occurring in winter or spring.
• Hot Winds and Heatwaves: Scorching of the plant by hot winds like the Samyeli.
• Excessive Humidity: Humidity imbalances that damage yield and quality.
• Excessive Rainfall: Soil saturation leading to root rot.

How Does the System Work? (The Most Frequently Asked Question)

The logic of this insurance differs from others. Damage assessment is not performed specifically for your individual field; the village-wide average is considered. Here is the step-by-step process:

1. Threshold Yield is Determined: Based on TARSİM and TurkStat data, the “Expected Average Yield” (Threshold Yield) for that product in that village is pre-determined (e.g., 300 kg/decare for wheat).
2. Harvest Time Detection: When harvest time arrives, TARSİM adjusters visit “Reference Plots” in the village to measure the actual yield realized that year.
3. Compensation Calculation: If the village’s actual average yield falls below the determined Threshold Yield (e.g., if it realized as 200 kg/decare), the difference (100 kg loss) is paid as compensation to all farmers who took out insurance in that village.

Important Note: Even if the yield in your specific field is high, you can receive compensation if the village average is low. Conversely, if the village average is high but your field yield is low, you cannot receive compensation. This system is based on “General Disaster” logic.

What Should I Do for Hail and Fire Risks?

Village-Based Yield Insurance pays for drought but not for hail. To protect your crop against hail, fire, and storms, you must also take out Crop Insurance (Hail Package). Taking out both policies simultaneously ensures full protection and earns you additional premium discounts.

Which Situations are Paid?

Examples for a clear understanding of coverage:

Situation	Payment Status (Based on Village Average)
No Rain, Ears Remained Empty	✅ Paid (Drought)
Hot Wind Dried the Sunflower	✅ Paid (New 2025 Coverage)
Hail Fell, Crops Lodged	❌ Not Paid (Subject of Hail Package)
Wild Boars Ravaged the Field	❌ Not Paid (Subject of Crop Insurance)
Yield Dropped Because No Fertilizer Was Applied	❌ Not Paid (Maintenance Error)

Who Can Apply?

The only requirement for a TARSİM policy:

• • ÇKS Registration: You must have an up-to-date registration in the Farmer Registration System (ÇKS), and the land must appear as “Dryland Farming” in the system. This policy cannot be issued for irrigated agricultural lands.
  • Deadline: Policy issuance ends based on the phenological stage of the product (usually before the stem elongation stage). It is important not to leave your applications until the last day.

You can access detailed information about village-based yield insurance premium calculation and state subsidies on the official TARSİM (Agricultural Insurance Pool) website. Panacea Insurance is the farmer’s biggest supporter.

In conclusion, Village-Based Yield Insurance is the insurance for the farmer who looks at the sky and worries, “Will it rain?” With 70% support from the state, do not miss this opportunity.
Let your hard work not dry up with Panacea Insurance; may your abundance be eternal.