The first purchaser of the DFAs is LLC “Luch” (PSRN 1066138002270), the experimental unit of FSBSI FRC AESDRA VNIIESH and a crop-producing agricultural organization in Rostov region managed by BEFL.

The DFAs certify monetary claims. The issuer is Insurance company “Sberbank insurance” LLC; the information system operator is Sberbank.

BEFL expertise in the agricultural sector made it possible to structure the project around the real needs of agricultural producers. Insurance coverage was arranged for 2,000 hectares of winter wheat crops in Chertkovo district of Rostov region. The insurance terms offered to the agricultural producer make the DFAs a transparent, clear and reliable instrument for compensating for the weather anomalies risks.

The project demonstrates that digital financial instruments are applicable in agricultural insurance and can serve as a basis for new risk management mechanisms in the agricultural sector. The prospects of this approach are noted by Nabi Dalgatovich Avarskii, Corresponding Member of the Russian Academy of Sciences, Doctor of Economics, Academic Secretary of FSBSI FRC AESDRA VNIIESH: in his view, digital solutions have significant potential for improving the efficiency and accessibility of modern agricultural insurance mechanisms.

The first issuance of DFAs for agricultural insurance and their acquisition by an agricultural organization create a practical foundation for the further development of digital financial instruments in the agro-industrial sector.

It is hoped that this instrument will soon gain broad adoption among Russian agricultural producers.