What is Income Protection Insurance?

A farmer has two major fears: “What if a disaster occurs and my crop is destroyed?” and “What if prices drop at harvest time and I can’t cover my costs?”. Standard agricultural insurance (Hail Package) and Village-Based Yield Insurance address the first fear, namely “Yield Loss.” However, they do not cover the risk of a “Price Drop” due to market conditions, stock exchanges, and the supply-demand balance. Income Protection Insurance steps in at this point, offering the most advanced insurance model implemented worldwide. This policy covers the loss of income caused by both yield reduction and price decrease risks.

At Panacea Insurance, we see this product as the “Farmer’s Revenue Guarantee.” It ensures that the income you targeted while planting is largely protected, regardless of what happens at harvest time (be it a disaster or a price drop).

How Does the System Work? (Yield x Price)

The logic of this insurance is to insure the money (Income) the farmer will receive. Income is calculated using this formula: Yield x Price = Income. The insurance covers drops in both variables:

1. Yield Protection Part: If the yield in the field falls below expectations due to reasons such as drought, frost, hot winds, hail, or flood, the difference in the amount loss is paid. (It works similarly to the logic of Village-Based Yield Insurance).
2. Price Protection Part: Even if your yield is full, if the price formed in the Trade Exchanges at harvest time falls below the reference price determined when the policy was made, the price difference is paid.

Result: If both yield and price drop, the highest compensation is paid to the farmer.

60% State Support and Pilot Application

This insurance is currently applied to Bread and Pasta (Durum) Wheat, which is a strategic product. To encourage this system, the state covers 60% of the premium as a grant.

• Expanding Scope: Starting as a pilot in the districts of Konya, the application aims to expand to the entirety of Konya, Karaman, and Aksaray provinces, and eventually across all of Türkiye as its success is proven.
• Special for Wheat Producers: It is currently valid only for wheat, but products like corn and sunflower are expected to be included in the scope in the coming years.

Which Risks Are Covered?

Income Protection Insurance is designed to cover almost “Everything”:

• All Climatic Risks: Drought, frost, hot winds, excessive humidity, excessive precipitation.
• All Physical Disasters: Hail, storm, tornado, fire, landslide, earthquake, flood, and inundation.
• Wildlife Damage: Damage caused by wild boars.
• Price Risks: Unexpected drops in product prices on the exchange.

Income Protection vs. Other Insurances

A comparison for you to see the difference clearly:

Feature	Crop Insurance (Hail)	Village-Based Yield	Income Protection
Drought Coverage	No	Yes	Yes
Price Drop Coverage	No	No	Yes (Unique Feature)
State Support	50%	70%	60%

Which Policy Should I Choose?

If Income Protection Insurance is not yet active in your region (if it’s only in pilot regions), your best alternative is the Village-Based Yield Insurance combined with the Crop Insurance package. Panacea experts will determine the most suitable state-supported policy for your region (Province/District).

When is Compensation Paid?

The process works similarly to Village-Based Yield Insurance, but a “Price” parameter is added at the end:

1. Yield Assessment: At harvest time, TARSİM adjusters determine the average yield in the village.
2. Price Determination: The average wheat price formed in the Trade Exchanges throughout the harvest period is determined.
3. Calculation: If the Realized Income (Yield x Price) falls below the Guaranteed Income in the policy, the difference is paid as compensation.

Who Can Apply?

To benefit from this special insurance:

• Be registered in the Farmer Registration System (ÇKS).
• The “Wheat” must be planted on the application parcel.
• The land must be within the borders of the pilot region (Province/District) where Income Protection Insurance is applied.

You can visit the official TARSİM (Agricultural Insurance Pool) website for income protection insurance application regions and detailed conditions. Panacea Insurance supports the financial literacy and security of the Turkish farmer.

In conclusion, Income Protection Insurance is the future of agriculture. Do not leave production risk to nature or price risk to the market. Take control.
With Panacea Insurance, let your harvest be plentiful and your earnings be guaranteed.